All of the Following Are True for Multivariable Account Segmentation

question 109

Multiple Choice

All of the following are true for multivariable account segmentation EXCEPT that it:

• A) characterizes the organization's account using more than one criterion.
• B) is used by sales organizations who sell to several markets.
• C) emphasizes the supply of similar products to channel members.
• D) is used because organizations use many channel members.
• E) allows sales personnel to develop plans for selling various products to specific segments of their accounts.

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Definitions:

Monopolistically Competitive

Describes a market structure where many firms sell products that are similar but not identical, allowing for product differentiation and some degree of market power.

Normal Profit

The minimum level of profit needed for a company to remain competitive in the market, equating to its opportunity costs.

Economic Profit

The surplus remaining after total costs (including both explicit and implicit costs) are subtracted from total revenues, reflecting the opportunity costs of all resources.

Monopolistically Competitive

A market structure characterized by many firms selling differentiated products with few barriers to entry.