Market Segmentation Refers to the Process of Dividing a Firm's

question 34

True/False

Market segmentation refers to the process of dividing a firm's total customer base into homogeneous clusters in a way that allows management to formulate unique marketing strategies for each group.

---

Definitions:

Present Value Index

A calculation that compares the present value of net cash inflows to the initial investment, used to evaluate the profitability of an investment.

Computed

Refers to something that has been determined or calculated using a computer or calculator.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project, calculated by discounting the expected future cash flows to their present values and subtracting the initial investment.

Present Value

The immediate value of a future amount of money or a series of payments, discounted at a given rate of return.