Firms Use a Differentiated Targeting Strategy Because

question 129

Multiple Choice

Firms use a differentiated targeting strategy because

• A)it is easier than mass marketing.
• B)it helps obtain a bigger share of the market.
• C)it is easier than focusing on individual or small groups of potential customers.
• D)most market segments are too small to be profitable.
• E)banks are more willing to extend credit to companies with this strategic approach.

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Definitions:

Compounding Interval

The frequency at which interest is added to the principal amount of an investment or loan which can affect the total interest earned or paid.

Compounded Monthly

In finance, it refers to the process of computing interest on an investment or loan on a monthly basis, with each month's interest being added to the principal for the calculation of subsequent interest.

Interest

The cost of borrowing money or the payment received for saving or investing money, typically expressed as an annual percentage of the principal.

Nominal Rate

The interest rate stated on a financial product, not adjusted for inflation.