The Best Segmentation Approach Is the One That

question 145

Multiple Choice

The best segmentation approach is the one that:

• A)is simplest and least costly in assigning potential buyers to segments.
• B)recognizes similarities of needs of potential buyers within a segment.
• C)maximizes the opportunity for future profit and ROI
• D)recognizes different needs of buyers among different segments.

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Definitions:

Fixed Operating Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced.

Straight-Line Depreciation

An approach to apportion the cost of a tangible asset throughout its operational life in equal yearly sums.

Net Present Value

A financial calculation used to determine the value of a series of future cash flows by discounting them back to their value in today's dollars.