Which of the Following Is a Basic Requirement for Effective

question 143

Multiple Choice

Which of the following is a basic requirement for effective market segmentation?

• A) The firm must avoid focusing on the consumer-dependent variable, such as discretionary income, while conducting market segmentation.
• B) The market segment must present measurable purchasing power and size.
• C) The company must expand beyond its marketing capabilities to capture those market segments that have reached the maturity stage in the product life cycle.
• D) The company must target a large number of small market segments so that they can develop effective strategies to appeal to them.

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Definitions:

Cash Flow

The net amount of cash being transferred into and out of a business, project, or financial product.

Required Return

The minimum annual percentage earned by an investment that will entice individuals or companies to invest their money.

Zero-Coupon Bond

A debt security that is issued at a discount and repaid at face value but does not pay interest during its life.

Investment

The allocation of resources (such as time, money, or effort) in the expectation of generating an income or profit.