When Selecting Strategies for Targeting Markets,which of the Following Is

question 94

Multiple Choice

When selecting strategies for targeting markets,which of the following is a disadvantage of an undifferentiated targeting strategy?

• A) It results in market segments that are either too small or that shrink because of environmental changes.
• B) It often results in sterile,unimaginative product offerings that have little appeal to anyone.
• C) It results in cannibalization of products.
• D) It increases the production and marketing costs of a firm.

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Definitions:

Activity Cost Pools

Groups of individual costs driven by the same cost drivers, used in activity-based costing to allocate costs more accurately.

Customer Margin

The profit margin that a company earns from a particular customer, taking into account all revenues and costs associated with that customer.

Idle Capacity

The condition when resources, typically manufacturing or production facilities, are available but not in use.

Activity Rates

The costs assigned to specific activities, used in activity-based costing to allocate overhead costs more accurately.