Meghan Would Like to Open a House Cleaning Business and Is

question 194

Multiple Choice

Meghan would like to open a house cleaning business and is considering several market segments. She has identified four segments for consideration; young, urban singles, young married professionals, senior citizens, and college students. She has just completed an analysis of these four segments by assessing such factors as sales estimates, competition, and estimated costs. Meghan is now ready for the next step in the target market selection process, which is to

• A)identify the appropriate targeting strategy.
• B)determine which segmentation variables to use.
• C)develop market segment profiles.
• D)evaluate relevant market segments.
• E)select specific target markets.

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Definitions:

Loan Securitizations

The process by which a financial institution groups various types of contractual debt such as mortgages or loans and sells them as consolidated financial instruments to investors.

Borrowers

Individuals or entities that take funds from a lender under the agreement to return the funds, typically with interest, over a set period.

Lender

An individual, a financial institution, or another entity that lends money to another party with the expectation that the money will be paid back with interest.

Floor Price

The minimum price level set for a financial security, commodity, or good, below which it cannot be sold in the market.