When Compared to a Multiple-Products-Multiple-Market Segments Strategy, a One-Product-And-Multiple-Market-Segment Strategy

question 6

Multiple Choice

When compared to a multiple-products-multiple-market segments strategy, a one-product-and-multiple-market-segment strategy

• A)is a much more effective means of meeting consumers' individual needs.
• B)creates greater cost savings in manufacturing costs.
• C)is a more effective way of meeting organizational objectives.
• D)have significantly higher distribution costs.
• E)is more profitable since you can charge the new segment higher prices without changing the product.

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Definitions:

Elastic Currency

A currency system that can expand or contract in supply to accommodate economic needs and stabilize the economy.

Secondary Reserves

Liquid assets held by financial institutions that are not used for primary obligations but can be quickly converted to cash for emergency needs.

U.S. Government Securities

Financial instruments issued by the United States Department of the Treasury to finance federal government's expenditures.

Vault Cash

Currency and coins held by a bank in its vault and used to satisfy the bank's reserve requirements.