Market Segmentation

question 183

Multiple Choice

Market segmentation:

• A) is a scientific technique for selecting ways to attract specific population samples
• B) is rarely done by consumer products companies
• C) only needs to be done once for each product
• D) should be redone periodically
• E) should be done every time a product enters a new stage of its life cycle

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Definitions:

Positive Cash Flows

The situation where a company's cash inflows exceed its cash outflows, indicating financial strength and the ability to finance operations, debt, and investments.

NPV

Net Present Value, a method used in capital budgeting to assess the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows.

Required Return

Required return is the minimum profit or gain needed from an investment to make it worthwhile, considering the risk involved and the opportunity cost of forgoing other investments.

IRR

The internal rate of return, a metric used to evaluate the profitability of potential investments.