The Most Basic Assumption of Market Segmentation Is That

question 10

Multiple Choice

The most basic assumption of market segmentation is that:

• A) The organization would customize the product to the customer
• B) Customers have different needs and wants
• C) Different markets require one product
• D) Customers want certain benefits out of the product

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Definitions:

Amortization Period

The length of time over which the principal of a debt is scheduled to be paid down through amortization.

Discounted Cash Flow

A valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for time value of money.

Payback Period

The duration required to recover the initial investment in a project or asset, based on the cash inflows that the investment generates.

Time Value

The principle that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.