Segmentation Based on Some Observable Actions or Attitudes by Prospective

question 90

Multiple Choice

Segmentation based on some observable actions or attitudes by prospective customers-such as where they buy, what benefits they seek, how frequently they buy, and why they buy is referred to as

• A)demographic segmentation.
• B)psychographic segmentation.
• C)geographic segmentation.
• D)behavioral segmentation.
• E)socioeconomic segmentation.

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Definitions:

Bad Debt Expense

An expense recognized by businesses for receivables that are considered uncollectible, reflecting estimated losses.

Consignment

A business arrangement where goods are left with a third party to sell, but the original owner retains ownership until the items are sold.

Allowance for Uncollectible Accounts

A contra-asset account used to estimate the portion of accounts receivable that may not be collected.

Trade Accounts

Accounts used to record transactions carried out on credit between businesses, typically involving the sale of goods and services.