The Market Segmentation Process

question 70

Multiple Choice

The market segmentation process:

• A) divides a market into distinct groups that have heterogeneous needs
• B) divides a market into distinct groups that will respond similarly to marketing actions
• C) identifies markets with unfulfilled needs
• D) positions products in the minds of prospects and customers

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Definitions:

Expected Return

The anticipated average return on an investment, taking into account all potential outcomes and their probabilities.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Return Percentage

The amount of gain or loss on an investment over a specified period, presented as a percentage of the investment's initial cost.

Market Risk Premium

The additional return expected by investors for taking on the risk of investing in the stock market over a risk-free rate.