Segmentation Should Be Based on

question 7

Multiple Choice

Segmentation should be based on

• A) demographic and geographic variables.
• B) competitors' segmentation models.
• C) customer needs and customer attractiveness.
• D) psychographic variables only.
• E) easy-to-access data.

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Definitions:

Net Sales

The amount of sales revenue remaining after deducting returns, allowances for damaged or missing goods, and discounts.

Accounts Receivable

Funds that customers owe to a business for products or services that have been received but remain unpaid.

Bad Debt Expense

The cost associated with accounts receivable that a company is unable to collect.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of receivables that may not be collected.