Income Segmentation Is a Commonly Used Segmentation Technique

question 71

Multiple Choice

Income segmentation is a commonly used segmentation technique.It has some problems,however,such as ___________.

• A)It is difficult to collect quality marketing research on income due to people purposely misstating or refusing to reveal their income
• B)It is too simple to use
• C)It correlates with occupation so it is difficult to know which is better
• D)It is time-consuming to study consumers' buying habits based on their income
• E)None of these

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Definitions:

Periodic Bond Interest

Regular interest payments made to bondholders during the life of a bond.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used in discounting and investment appraisal.

Bond Discount Account

An accounting term representing the difference between the face value of a bond and its selling price when sold at less than its face value.

Serial Bonds

Bonds that mature at different intervals over a period of time, allowing the issuer to retire a portion of the bond issue at regular intervals.