Which of the Following Is an Example of a Nonvalue-Adding

question 125

Multiple Choice

Which of the following is an example of a nonvalue-adding activity?

• A)Product distribution activity
• B)Customer service activity
• C)Data processing activity
• D)Product design activity

Identify the challenges and criteria for effective market segmentation and targeting.

Understand how demographic variables (age, gender, income) are used in market segmentation.

Appreciate the significance of adapting marketing strategies to meet the needs of specific market segments.

Understand the concept of repositioning and its relevance in marketing.

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Definitions:

Marginal Costs

Marginal costs refer to the change in total cost that arises when the quantity produced is incremented by one unit.

Target Capital Structure

Target capital structure is the proportional combination of debt, equity, and other financing sources a company aims to maintain.

Discounted Cash Flow

A valuation method used to estimate the value of an investment based on its expected future cash flows.

Cost of Equity

The return that investors expect for investing in a company's equity, reflecting the risk compared to the risk-free rate of return.