A Credit Card Company Issues a Special Card Only to Those

question 102

Multiple Choice

A credit card company issues a special card only to those customers who spend more than $500,000 a year on its other cards.This is an example of:

• A)geographic segmentation.
• B)benefit segmentation.
• C)gender segmentation.
• D)income segmentation.
• E)psychographic segmentation.

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, leading to a decrease in per unit cost with an increase in production.

Least Cost

The process of minimizing expenses involved in producing a good or service while maintaining its quality and efficiency.

Minimum Efficient Scale

The smallest amount of production a company can achieve while still taking full advantage of economies of scale with regards to minimizing its costs.