Marketers Must Know the Needs and Wants of Their Customers

question 14

Multiple Choice

Marketers must know the needs and wants of their customers. Which of the following presents the most accurate picture of the typical elderly consumer today?

• A) Most are old, infirm, depressed, stay-at-home people who live a hand-to-mouth existence.
• B) Most are active, interested in what life has to offer, and are enthusiastic consumers with the means and willingness to buy many goods and services.
• C) Most live with their children, have little savings, and have an increasingly difficult time adjusting to the changing technical world around them.
• D) Most have refused government support and are going through a hermitization process. They don't trust anyone under 60.

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Definitions:

Variable Costing

An accounting method that includes only variable production costs (costs that change with the level of production) in product costs.

Absorption Costing

A financial accounting technique that integrates all production expenses, including direct materials, direct labor, along with all variable and fixed manufacturing overhead costs, into the product's cost.

Variable Production Costs

Costs that vary directly with the level of production output, such as raw materials and labor expenses.

Fixed Production Costs

Payments that stay unchanged regardless of how much is produced or sold, covering rent, salaries, and insurance.