When a Regional Computer-Manufacturing Firm Began to Seek Out Customers

question 99

Multiple Choice

When a regional computer-manufacturing firm began to seek out customers who lived outside of its traditional market boundaries,the firm was employing which of the following new-customer expansion strategies to expand its total market

• A) market-penetration strategy
• B) new-market segment strategy
• C) geographic-expansion strategy
• D) product differentiation strategy
• E) latent demand strategy

---

Definitions:

Relevant Costs

Costs that should be considered when making a decision because they will be affected by the decision; these costs are future-oriented and differ among alternatives.

Sunk Costs

Costs that have already been incurred and cannot be recovered or altered by any current or future actions.

Unproductive

Refers to resources or activities that do not contribute to the output or efficiency of a process or operation.

Fixed Costs

Costs that do not change in total with changes in the volume of production or sales, such as rent, salaries, and insurance.