The Primary Advantage of a Concentrated Targeting Strategy Is

question 52

Multiple Choice

The primary advantage of a concentrated targeting strategy is

• A) it meets the needs of a wide range of consumers.
• B) it allows a firm to specialize to meet specific customer needs.
• C) it is more flexible than any other approach.
• D) it is the least risky targeting approach.
• E) its customers are the most willing to repurchase the same brands.

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Definitions:

Machine-hours

A measure of production time, calculated by the number of hours a machine is operated in the production of goods.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products, based on a planned level of activity.

Direct Labor-hours

The sum of hours logged by workers directly engaged in creating products.

Manufacturing Overhead

Manufacturing overhead encompasses all costs of manufacturing beyond direct materials and direct labor, including expenses like factory equipment depreciation and quality control.