Subdividing a Market into Distinct Subsets of Customers According to Their

question 92

Multiple Choice

Subdividing a market into distinct subsets of customers according to their needs and buying habits is known as

• A) market penetration.
• B) product diversification.
• C) market segregation.
• D) market segmentation.
• E) positioning.

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Definitions:

Activity Rate

A measure used in cost accounting to allocate costs to products or services based on the activities required to produce them.

Estimated Cost

An approximation of the cost to produce goods or services, used for budgeting and planning.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on their usage of the resources.

Materials Handling

The movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, and disposal processes.