A Large Firm with Ample Resources Wants to Minimize the Risk

question 52

Multiple Choice

A large firm with ample resources wants to minimize the risk of "inviting" competitors to "chip away" at its target market(s) .It has segmented its broad product-market and identified several homogeneous submarkets-each of which is large enough to offer attractive sales and profit potential.Which of the following approaches should the firm use?

• A)multiple target market approach
• B)mass marketing approach
• C)combined target market approach
• D)single target market approach
• E)niche market targeting approach

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Definitions:

Product X

A placeholder name commonly used to refer to a generic or unspecified product in discussions or examples.

Activity-based Costing

An approach to assigning an organization's overhead costs to specific products or services based on the activities undertaken to produce those products or services.

Direct Labour-hours

Direct labor-hours are the total hours spent by workers who directly contribute to the manufacture of a product, a direct measure of labor input.

Activity Cost Pools

Aggregations of all the costs associated with specific activities, used in activity-based costing to allocate costs more accurately.