In the Target Case Study, Why Did Target Send a Teen

question 22

Multiple Choice

In the Target case study, why did Target send a teen maternity ads?

• A) Target's analytic model confused her with an older woman with a similar name.
• B) Target was sending ads to all women in a particular neighborhood.
• C) Target's analytic model suggested she was pregnant based on her buying habits.
• D) Target was using a special promotion that targeted all teens in her geographical area.

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Definitions:

Contribution Format

An income statement format that separates fixed costs from variable costs to highlight the contribution margin.

Variable Costing

An accounting method that includes only variable production costs in product costs and treats fixed production costs as period costs.

Reconciliation Method

A process used to ensure that two sets of records or balances are in agreement, often used in accounting to compare transactions and balances.

Contribution Format

An income statement format that separates fixed costs from variable costs to highlight the contribution margin of a company.