Which of the Following Is True About a Firm's Decision

question 73

Multiple Choice

Which of the following is true about a firm's decision to "mass market" a product?

• A) This decision does not require a market segmentation analysis.
• B) This decision should be reached only after a market segmentation analysis has been conducted.
• C) This decision requires that a company selects on a target market first.
• D) This decision can be reached only after the firm develops a marketing mix.

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Definitions:

Demand

Refers to the desire and willingness of consumers to purchase goods and services at different prices.

Income Elasticity of Demand

An indicator of the variation in the demand for a product as a result of changes in the income levels of consumers.

Normal Good

A good for which demand increases when consumer income rises, and decreases when consumer income falls.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, and vice versa.