GE Used Data from Past Company Transactions to Organize Customers

question 52

Multiple Choice

GE used data from past company transactions to organize customers by the type of equipment leased and by their likelihood of wanting to do business with GE. This is an example of

• A) customer segmentation.
• B) understanding customer needs.
• C) creating customer value.
• D) a sales strategy.
• E) a marketing communications strategy.

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Definitions:

Product Portfolio

The collection of all products or services that a company offers to sell. The portfolio can include a range of products across different markets or product categories.

Contribution Margin Mix

The relative proportion of different products or services, contributing to the total contribution margin, highlighting how combination effects overall profitability.

Break-Even Point

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and one has 'broken even'.

Unit Contribution Margins

The difference between the selling price per unit and variable cost per unit, indicating the contribution of each unit sold to covering fixed costs.