Which of the Following Targeting Strategies Results in Cannibalization of Products

question 15

Multiple Choice

Which of the following targeting strategies results in cannibalization of products?

• A)​A multisegment targeting strategy
• B)The universal targeting strategy
• C)An undifferentiated targeting strategy
• D)​A concentrated targeting strategy

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Definitions:

Up-front Costs

Initial expenses required to start a project, product, or service before any financial return is seen.

Discounted Payback Period

The time required to recoup the cost of an investment while considering the time value of money, typically shorter than simple payback period.

Required Return

The least profit anticipated by an investor from an investment in a certain asset, given its risk profile.

Cash Flows

The net amount of cash being transferred into and out of a business, especially as affecting liquidity.