Which of the Following Is True of Needs-Based Market Segments

question 32

Multiple Choice

Which of the following is true of needs-based market segments?

• A)Relevant demographics that cause differences in needs include investments,size of investment portfolio,and portfolio diversification.
• B)To make the segments actionable,the observable demographics and behaviors have to be determined.
• C)The main advantage is that individual customers who fall into each segment can be identified.
• D)The main disadvantage is that the segments are not directly based on specific customer needs.
• E)The usage behaviors that cause differences in needs include income and assets.

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Definitions:

Fixed Manufacturing Overhead

Costs that do not change with the level of production activity, such as salaries of managers, depreciation of factory equipment, and utility costs of the factory.

Absorption Costing

A product costing technique that assigns all costs of production (both variable and fixed) to the product, including overheads, to calculate its full cost.

Fixed Manufacturing Overhead

Costs that remain constant in total within manufacturing operations, regardless of the level of production, such as factory rent or salaries of permanent staff.

Traceable Fixed Expenses

Fixed costs that can be directly linked to a specific cost object, such as a department or product.