When Segmenting Broad Product-Markets, Cost Considerations Tend

question 223

Multiple Choice

When segmenting broad product-markets, cost considerations tend

• A) to encourage managers to disregard the criterion that a product-market segment should be substantial.
• B) to lead to more aggregating.
• C) to be unimportant as long as the segmenting dimensions are operational.
• D) to lead to a large number of small, but very homogeneous, product-market segments.
• E) All of these are true.

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Definitions:

Sales Revenue

Earnings a company secures through the sale of goods or services provided.

Sales Taxes Payable

The amount of sales tax collected from customers that has not yet been remitted to the relevant taxation authority, representing a liability.

Sales Revenue

The sum of money earned from the sales of goods or services that are fundamental to a company's main business activities.

Interest Charged

The cost incurred for borrowing money, calculated as a percentage of the total amount loaned.