The Concept of Being Responsive as a Prerequisite for Market

question 97

Multiple Choice

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

• A)the customers in a market 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 customers should be high enough to generate substantial profits.
• E)market segments should overlap to a great extent to facilitate marketing mix activities.

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Definitions:

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency of the business.

Capital Cost Allowance (CCA)

The deduction in the Canadian tax system for depreciation of tangible property that a business uses to generate income.

Original Cost

The initial amount of money spent to acquire an asset, before depreciation or amortization is taken into account.

Required Rate Of Return

The minimum percentage return an investor expects to receive from an investment due to its risk level.