Matt's Company Produced a High-Tech Wireless Business Organiser for Busy

question 24

Multiple Choice

Matt's company produced a high-tech wireless business organiser for busy professionals.Matt suggested that a significant part of Internet promotions be made to appeal to gay,lesbian,bisexual and transgender (GLBT) consumers.His manager argued against it,claiming the segment was too small to be of interest to the company.Which of the following claims should Matt use to support his position?

• A) The GLBT segment is always looking for new products.
• B) Although GLBT customers have smaller incomes than other segments, they are more likely to spend money on trendy products.
• C) GLBT customers are more likely to have lower level jobs; therefore, they will be attracted to products that give an appearance of success.
• D) The GLBT segment is larger than most think, and GLBT consumers are more likely to hold professional jobs and have high incomes.

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Definitions:

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis.

Net Present Value

A financial metric that calculates the present value of expected future cash flows relative to the initial investment, used to assess the profitability of an investment.

Investment Project

An undertaking requiring capital investments with the aim of generating future returns.

Interest Rate

is the percentage of a loan amount charged by the lender to the borrower for the use of assets.