Which of the Following Correctly Identifies Why Companies Would Use

question 128

Multiple Choice

Which of the following correctly identifies why companies would use a market segmentation strategy?

• A) They can avoid antitrust laws by selecting a small slice of a larger market.
• B) This strategy enables a firm to identify common traits in different consumer groups.
• C) With limited resources, firms can better satisfy the wants and needs of a smaller target market.
• D) Government regulations require firms to maintain accurate records to show that the firm has not discriminated against a market segment.

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Definitions:

Priority

The status of being regarded or treated as more important than other matters.

Purchase Money Security Interest

A security interest that is (1) taken or retained by the seller of collateral to secure all or part of its purchase price or (2) taken by a debtor to acquire rights in or the use of the collateral if the value is so used.

Inventory Collateral

Assets from a company's inventory that are pledged to secure a loan.

Notification

The act of formally or officially informing someone about a fact, condition, or event.