The Gap Has Recently Produced a New Line of Athletic

question 80

Multiple Choice

The Gap has recently produced a new line of athletic wear that closely competes with a designer label in its quality, utility, and appearance. However, it is about half the cost of the designer brand. Product managers for The Gap line plan to use price sensitivity, brand loyalty, and end use as variables to segment their target market. These are all _______ variables for market segmentation.

• A)psychographic
• B)usage
• C)demographic
• D)lifecycle
• E)behavioristic

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Definitions:

Functional Currency

The main currency used by a business or economy, reflecting the primary economic environment in which it operates.

Shareholders' Equity

The residual interest in the assets of an entity that remains after deducting its liabilities, representing ownership value in the company.

Presentation Currency

The currency in which the financial statements of an entity are presented.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in the net income or loss for that period.