Paul Is Considering Psychographics as a Way to Segment the Market

question 36

Multiple Choice

Paul is considering psychographics as a way to segment the market for his small travel agency.This approach to segmentation offers him an advantage because

• A) it is based on underlying motivations of target customers.
• B) it is easier to use than demographics.
• C) the travel business doesn't respond well to other approaches to segmentation.
• D) psychographics is the preferred method for service businesses.
• E) psychographic segmentation is the least expensive method.

Grasp the concepts of optimal order quantity and capacity considerations in single and multiple product ordering.

Comprehend the importance and effect of postponement in a supply chain, especially with regard to product differentiation and demand uncertainty.

Understand how quick response can affect inventory levels, profitability, and overstock quantity in supply chain management.

Identify the factors influencing the value of postponement and how it is affected by demand correlation and uncertainty.

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Definitions:

EBIT

The measure known as Earnings Before Interest and Taxes determines a company's profit levels by excluding interest and tax-related expenses.

Financial Leverage

The use of borrowed funds with the intent to increase the return on equity.

EBIT-EPS Lines

Graphical representations that show the impact of financing choices, especially debt and equity, on a company's earnings per share (EPS) for various levels of earnings before interest and taxes (EBIT).

EPS

Earnings per share; a measure of a company's profitability calculated by dividing its net income by the number of outstanding shares.