Which of the Following Best Represents an Example of Demographic

question 48

Multiple Choice

Which of the following best represents an example of demographic segmentation?

• A) A recreational equipment company divides its market into groups by region of the country, designing different products for people in different parts of the country.
• B) A car manufacturer offers different types of cars designed to appeal to different age groups and income levels.
• C) An entertainment company divides its market according to the attitudes and interests of its customers, marketing some films to people who enjoy action movies and targeting other movies to people who prefer romantic comedies.
• D) A food company has designed a special line of easy-to-prepare microwavable meals that are low fat and high in fiber to attract people interested in the health benefits of the foods they eat.

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Definitions:

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated by dividing total liabilities by total assets.

Total Debt

The sum of all financial obligations a company or individual owes to outside parties, which can include loans, bonds, mortgages, and other forms of debt.

Total Assets

The sum of all resources owned by an individual, company, or institution, valued in monetary terms.

Total Asset Turnover

An activity ratio that measures how efficiently the firm uses all of its assets to generate sales; a high ratio generally reflects good overall management.