The Two Main Classifications of Business Products Are

question 60

Multiple Choice

The two main classifications of business products are

• A) durable and nondurable products.
• B) components and support products.
• C) tangible and intangible products.
• D) consumer and industrial products.
• E) derived and maintenance products.

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Definitions:

Target Market

The target market is a specific group of consumers at which a company aims its products and services, identified by demographic, geographic, or psychographic characteristics.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of consumers to price changes.

Inelastic Demand

This economic concept describes a situation where the demand for a product does not significantly change with the price change.

Contribution Margin

A financial metric that represents the amount of revenue from sales that exceeds variable costs, used to cover fixed expenses and generate profit.