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The Management-Driven Method of Identifying Market Segments Asks Customers Which

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The management-driven method of identifying market segments asks customers which attributes of a product are important to them and clusters responses to identify potential segments.


Definitions:

Hurdle Rate

Hurdle Rate is the minimum acceptable return on investment or project that a business requires before it considers it viable or proceeds with it.

Accounting Rate of Return

The return on an investment calculated by dividing the average annual profit by the initial investment cost, typically used to assess the profitability of potential investments.

Net Cash Flow

The difference between a company's cash inflows and outflows during a specific period.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the strategy and financial performance of an organization.

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