Chapter 4 Details Actions That Vanguard Took After 1997 to Add

question 38

Multiple Choice

Chapter 4 details actions that Vanguard took after 1997 to add customer segmentation as a new core activity because it was unable to provide quality service to targeted customer segments at the lowest possible cost.By changing its _______________ Vanguard was able to adapt to changing market conditions and sustain its competitive advantage in the investment industry.

• A) Technological system
• B) Strategic activity system
• C) Organizational system
• D) Market segmentation system

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Definitions:

APR

Annual Percentage Rate, the annual rate charged for borrowing or earned through an investment, which includes all fees and costs associated with the transaction.

Mortgage Rate

The interest rate charged on a mortgage loan, determined by the lender, which affects the monthly payments and total amount paid over the life of the loan.

Annualized (Geometric)

Refers to a method of converting short-term rates of return into longer-term rates that account for the effect of compounding over a full year.

Rates of Return

The net gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.