The Division of Buyers into Groups Based on Lifestyle or Personality

question 29

Multiple Choice

The division of buyers into groups based on lifestyle or personality characteristics is ________ segmentation.

• A) psychographic
• B) demographic
• C) geographic
• D) behavioral

Understand the motives for holding cash in an organization.

Identify and explain the concepts of float in cash management.

Understand the strategic significance of collection and disbursement floats in cash management.

Comprehend the BAT and Miller-Orr models for managing cash balances.

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Definitions:

Average Cost

The total cost divided by the number of units produced, indicating the cost per unit of output.

Marginal Cost

The increase in total cost that arises from an extra unit of production, pivotal for decision-making in production processes.

Diminishing Returns

A principle stating that as more of a variable input is combined with a fixed input, the incremental gains in output will eventually decrease.

Increasing Returns

This refers to a scenario in economics where, as the quantity of input increases, the rate of output increases at a faster rate, leading to economies of scale.