For a Segmentation Strategy to Be Successful,the Customers in the Segment

question 151

Multiple Choice

For a segmentation strategy to be successful,the customers in the segment must react similarly and positively to the firm's marketing mix.The market segment must be

• A) substantial.
• B) perceptive.
• C) identifiable.
• D) reachable.
• E) responsive.

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Definitions:

Liquidity

The simplicity of turning an asset into cash without noticeably impacting its market value.

Payback Period

The duration of time it takes to recoup the initial investment in a project or asset, calculated by dividing the investment amount by the annual cash inflow.

Internal Rate

Often refers to the internal rate of return (IRR), a metric used to estimate the profitability of potential investments.

Net Present Value

A financial metric that calculates the present value of all cash flows associated with a project, considering both inflows and outflows, to assess profitability.