Scenario 6.1 Use the Following to Answer the Questions

question 108

Multiple Choice

Scenario 6.1
Use the following to answer the questions.
Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customer.Treatment options include manicures,pedicures,facials,tea parties,and dress up photos.Parents can even purchase a birthday party package.Currently,Lil' Angels offers its services only to girls under the age of 14.Originally begun in Delaware,Lil' Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17.The company realizes that some changes may be needed.For example,management wants to find out if the older girls will be interested in their birthday party and tea party services.
-Refer to Scenario 6.1.Which of the following best describes Lil' Angels' current approach to the market?

• A)It is segmenting the market according to demographic variables.
• B)It is segmenting the market according to product-related variables.
• C)It has chosen a segment that is not identifiable and divisible.
• D)Its market is impossible to reach because of legal constraints.
• E)It is not segmenting the market but is attempting to reach everyone with the product.

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Definitions:

Simple Interest Rate

The percentage of an amount of money which is paid as interest for a certain period of time, without compounding.

Investment

Allocation of resources, usually money, in expectation of a future return or profit.

Interest

The cost of borrowing money or the return on investment, typically expressed as a percentage.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money, or what a lender earns on an investment, over a specific period.