Explain What a Consumer Is

question 84

Short Answer

Explain what a consumer is.

Understand the concept and implications of the Efficient Market Hypothesis (EMH), including its forms and criticisms.

Identify and explain various anomalies and effects that challenge the EMH, such as the January effect, momentum effect, and liquidity effect.

Explain the principles and strategies of passive vs. active investment management, including portfolio diversification and the role of portfolio managers.

Understand the significance of value and growth stocks, including their characteristics and how they may affect investor returns.

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Definitions:

Geodemographic Segmentation

involves dividing a market into segments based on the geographical location and demographic characteristics of the consumers.

Psychographics

The study and classification of people based on their attitudes, aspirations, and other psychological criteria, primarily used in marketing.

Target Customers

A specific group of consumers at whom a company aims its products and services, identified by characteristics like age, gender, income, and interests.

Demographics

The statistical characteristics of human populations, such as age, gender, income, and education, used especially to identify consumer markets.