Customer Clustering Is Attractive to Marketers Because It

question 60

Multiple Choice

Customer clustering is attractive to marketers because it:

• A) creates clusters from names purchased from a direct marketing vendor.
• B) allows marketers to identify external data lists that match the firm's target customers.
• C) creates clusters of a firm's actual customers along an important purchase criteria.
• D) creates clusters based on the profile of a firm's best customers.

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Definitions:

Equivalent Units

A term used in cost accounting to denote a conversion measure that expresses the amount of work done on partially completed units in terms of fully completed units.

Conversion Cost

The cost associated with converting raw materials into finished products, typically including labor and overhead expenses.

Equivalent Unit

A metric used in cost accounting to express the amount of work done on incomplete units as a proportion of work done on complete units.

Factory Overhead

Refers to the indirect costs associated with manufacturing, excluding direct materials and direct labor costs.