It Can Cost Six Times More to Sell a Product

question 84

True/False

It can cost six times more to sell a product to a new customer than to an existing customer.

Calculate the payback period for capital investments.

Comprehend the application and implications of net present value (NPV) in investment decision-making.

Understand the relevance and application of the internal rate of return (IRR) in evaluating investment opportunities.

Grasp the concepts of salvage value, cash inflows, and depreciation in the context of capital budgeting.

---

Definitions:

Potential Buyers

Individuals or entities that have shown interest in purchasing a product or service but have not yet made a purchase.

Segments

Distinct groups of potential consumers divided based on various traits like demographics, needs, prioritization, or behavior in the market.

Similarities

Refers to the aspects or characteristics that are alike or comparable between two or more entities.

Segmenting

Segmenting, or market segmentation, involves dividing a target market into distinct groups of buyers with different needs, characteristics, or behaviors, who might require separate products or marketing strategies.