Ferrari Has Segmented Their Market on the Basis of Income

question 29

Multiple Choice

Ferrari has segmented their market on the basis of income and lifestyle. Their target market has household income greater than $200,000 and enjoys spectator sports like NASCAR racing. These two segmentation variables are grouped under the broader classifications of:

• A) demographics and product awareness.
• B) psychographics and customer intentions.
• C) geographic and motives.
• D) demographics and psychographics.
• E) demographics and product usage.

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Definitions:

Cosmetics Division

A business unit within a company focused on the development, production, and marketing of beauty and skincare products.

Operating Assets

Assets used by a business in its daily operations to generate revenue, such as cash, inventory, equipment, and real estate, excluding investments and non-operational assets.

Return On Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of the investment.

Investment Opportunity

An investment avenue that has the potential to yield returns, involving the allocation of resources in expectation of future gains.