The Concept of Being Identifiable as a Prerequisite for Market

question 29

Multiple Choice

The concept of being identifiable as a prerequisite for market segmentation refers to the fact that:

• A)the customers in a particular segment should react similarly and positively to a firm's offering.
• B)market segments should be accessible to firms through persuasive communications and product distribution.
• C)market segments should be distinct from one another for a firm to be able to design products or services to meet their needs.
• D)the buying power of consumers should be high enough to generate substantial profits.
• E)market segments should overlap to a great extent to facilitate marketing mix activities.

Identify costs associated with making or buying decisions and calculate their impact on profitability.

Recognize the importance of contribution margin in making decisions about product discontinuation or continuation.

Determine the relevance of sunk costs in decision-making processes.

Calculate the differential effect on profit from accepting special pricing orders.

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Definitions:

Shopping Products

Consumer goods for which buyers are willing to spend time and effort to compare quality, price, and style across different sellers.

Prestige Products

High-quality items that are regarded as status symbols, often marketed to appeal to consumers' desires for luxury and exclusivity.

Shopping Products

Products that consumers purchase less frequently and tend to compare on criteria such as quality, price, and style before making a decision.

Limited Distribution

A strategic choice by a company to offer its products or services at a select few outlets, often to maintain exclusivity or control over the brand image.