Why might a company assess its target market’s disposable income?

Assessing a target market's disposable income is crucial for a company as it helps in optimizing product offerings and pricing strategies. Disposable income refers to the amount of income that consumers have available for spending and saving after taxes have been subtracted from their gross income. Understanding this figure enables a business to tailor its products and services to meet the financial capabilities of its customers.

By analyzing the disposable income of its target audience, a company can decide on attractive pricing that is aligned with what potential customers can afford. Additionally, it can develop products that match the purchasing power of its target market, ensuring that the offerings are relevant and appealing. This insight plays a critical role in marketing strategies, promotional efforts, and overall business planning, thereby maximizing potential sales and customer satisfaction.

The other options do not directly relate to the necessity of knowing a market’s disposable income as directly as optimizing product offerings and pricing strategies. Determining tax rates pertains more to broader financial planning rather than market assessment. While forecasting potential revenue could involve understanding disposable income, it’s primarily about future sales predictions rather than directly optimizing current strategies. Finally, calculating dividend payouts is related to financial management and is not influenced by the disposable income of target consumers.