A Segmentation Study Found That Purchasers of IBM Equipment Are

question 80

Multiple Choice

A segmentation study found that purchasers of IBM equipment are more concerned about software support and breadth of product line and they are less concerned about absolute price and price flexibility (i.e., willingness of suppliers to negotiate price) . This provides an illustration of segmentation on the basis of:

• A)the importance of purchase.
• B)key criteria.
• C)the structure of the decision-making unit.
• D)attitude toward vendors.
• E)decision style.

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Definitions:

Price Elastic

A measure of how much the quantity demanded of a good or service changes in response to a change in its price.

Income Inelastic

A situation where the demand for a good does not significantly change with a change in consumer's income.

Real Prices

Prices that have been adjusted for inflation, reflecting the true purchasing power of money over time.

Inflation-Adjusted

Describes values that have been modified to account for changes in the purchasing power of money due to inflation, allowing for comparison over different time periods.