While Marketers Will Probably Use a Variety of Segmentation Methods

question 20

Multiple Choice

While marketers will probably use a variety of segmentation methods, _____ is relied upon as the key driver of marketing mix strategy?

• A) benefits sought
• B) behavior
• C) identifying target markets
• D) product usage

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Definitions:

Cost of Capital

The lowest return required for a project involving capital investment, such as building a new production plant, to be deemed feasible.

Mutually Exclusive

In project selection or decision making, mutually exclusive refers to options where the selection of one option precludes the selection of another.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.

Payback

Payback is a capital budgeting metric that measures the time required for an investment to generate cash flows sufficient to recover the initial investment cost.