The Grouping of Customers into Categories Based on Key Characteristics

question 25

Multiple Choice

The grouping of customers into categories based on key characteristics is called:

• A)itemization
• B)identification
• C)segmentation
• D)sales-force automation

---

Definitions:

Plowback Ratio

The proportion of earnings retained by a company after dividends have been paid out, indicating the level of reinvestment in the business.

Required Return

The minimum expected return an investor demands for holding a particularly risky investment.

Market Capitalization Rate

An alternative term often used to refer to the cost of equity or the expected return of a market portfolio.

Plowback Ratio

A metric indicating the percentage of earnings retained by a company after dividends have been paid out to shareholders.