Dana Wants to Open Up a Clothing Store

question 116

Multiple Choice

Dana wants to open up a clothing store. The target market she selects will largely determine the type of product she sells. She has performed research and come up with three market segments that she thinks could be profitable: formal wear for special events, stylish but high-end clothes for consumers who use clothing as a status symbol, and casual clothing for those whose main concern is comfort. Dana has used sales estimates, competitive assessments, and cost estimates to determine the potential profitability of each segment. What is Dana's next step in the process?

• A) Determine which segmentation variables to use
• B) Develop market segment profiles
• C) Develop sales forecasts
• D) Select specific target markets
• E) Evaluate relevant market segments

---

Definitions:

Shortage

A situation where the demand for a product or service exceeds the supply available.

Surplus

A situation where the quantity of a good or service supplied exceeds the quantity demanded at a given price.

Equilibrium Quantity

The amount of products or services available and sought after at the equilibrium price, where the supply meets the demand.

Price Floor

A government or regulatory-imposed minimum price for goods or services, intended to prevent prices from dropping too low.