________ Refers to the Categorization of Customers According to Their

question 29

Multiple Choice

________ refers to the categorization of customers according to their relationship with products or response to product characteristics.

• A) Demographic segmentation
• B) Geographic segmentation
• C) Ethnographic segmentation
• D) Psychographic segmentation
• E) Behavioral segmentation

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Definitions:

Model Usefulness

The effectiveness and practicality of a theoretical model in explaining, predicting, or making decisions in real-world situations.

Operating Leverage Factor

A measure that assesses the degree to which a company can increase operating income by increasing revenue, highlighting the fixed versus variable costs structure.

Sales Revenue

The total amount of money generated from the sale of goods or services before any expenses are subtracted.

Profit Increase

The growth in profit from one period to another, often measured as a percentage increase, indicating the company's improved financial performance.