Saying That a Good Market Segment Should Be "Substantial" Means

question 68

Multiple Choice

Saying that a good market segment should be "substantial" means that

• A)the company does not have to worry about substantial competition for a long time.
• B)people should have substantially different reactions to marketing mix variables.
• C)it should be large enough to be profitable.
• D)people in different market segments should be as different as possible.
• E)the product and its offerings are substantial in nature.

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Definitions:

Transactions Exposure

The risk of exchange rate changes affecting the value of financial transactions denominated in a foreign currency.

Hedging

A strategy used to offset potential losses or gains that may be incurred by a companion investment.

Economic Exposure

The risk that a company's cash flow, foreign investments, or earnings may suffer as a result of fluctuating exchange rates.

Derivative Security

A financial instrument whose value is based on the value of an underlying asset, such as stocks, bonds, commodities, or market indexes.