For a Segmentation Strategy to Be Successful, the Customers in the Segment

question 103

Multiple Choice

For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm's marketing mix. In other words, the market segment must be

• A)substantial.
• B)perceptive.
• C)identifiable.
• D)reachable.
• E)responsive.

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Definitions:

Forward Rate

is a financial term referring to a predetermined interest rate or currency exchange rate agreed upon for a transaction that will occur at a future date.

Discount

A reduction from the usual cost of something or the process of determining the present value of future cash flows.

Political Risk

In international business, the chance that the value of a firm’s investment in a foreign country will be reduced by political actions of either the foreign government or terrorists.

Exchange Rate Risk

The risk that international trade dealings will earn less than expected because of movement in exchange rates.