The Identification of Distinct Groups of Consumers Whose Purchasing Behavior

question 86

Multiple Choice

The identification of distinct groups of consumers whose purchasing behavior differs from others in important ways is known as

• A) market segmentation.
• B) market penetration.
• C) diversification strategy.
• D) differentiation.

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Definitions:

New Firms

Businesses that have been recently established, entering the market to offer goods or services.

Existing Firms

Businesses that are currently operational and have been established in the market for a period of time.

Profit

The financial gain obtained when the revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Long Run

A period during which all factors of production and costs are variable, allowing all inputs to be adjusted.