Instead of Segmenting Customers and Customizing Prices to Segments, Many

question 61

Multiple Choice

Instead of segmenting customers and customizing prices to segments, many managers attempt to target

• A) price-sensitive customers.
• B) price-insensitive customers.
• C) competitors' customers.
• D) "average" customers.
• E) brand loyal customers.

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Definitions:

Traced Costs

Direct costs, such as materials and labor, that can be directly linked to the production of specific products or services.

Drop the Product

The decision to discontinue the production and sale of a particular product, often due to low demand or profitability.

Activity-based Approach

A methodological approach that focuses on identifying and managing activities as the fundamental cost objects, aiming to improve business processes and allocate costs more precisely.

Job Costing Approach

A system used to assign manufacturing costs to an individual product or batches of products, commonly used in industries where products are distinct like construction or custom manufacturing.