Market Segmentation Refers to

question 198

Multiple Choice

Market segmentation refers to

• A)the philosophy that to do a truly excellent job of marketing a company should concentrate only on one segment of customers at a time.
• B)aggregating prospective buyers into groups that have common needs but who respond differently to a marketing action.
• C)aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.
• D)aggregating prospective buyers into groups and creating or designing specific products that will satisfy their unique needs.
• E)the belief that it is possible to satisfy every customer's needs if you can identify the correct segment in which they belong.

---

Definitions:

FIFO Earnings

Earnings calculated based on the "First In, First Out" inventory method, where the costs of the oldest inventory items are used first in determining profit.

Inventory Holding Gain

The increase in value of inventory held by a company, often due to price increases in the market rather than sales.

Dollar-Value LIFO

An inventory valuation method that uses the last-in, first-out (LIFO) cost flow assumption but measures those costs in dollar values, rather than in physical units, to account for inflation or deflation.

Initial Adoption

The first-time application of a new accounting principle, standard, or policy by a company in its financial reporting.