Hector Wants to Buy a Franchise

question 165

Multiple Choice

Hector wants to buy a franchise.He has developed a list of advantages and disadvantages.Which one does not apply?

• A) The start-up costs
• B) A franchise arrangement combines the incentive of owning a business with the advantage of access to big business management skills
• C) Franchises have a greater success rate than starting businesses from scratch
• D) Usually involves contributing a percentage of the sales to the parent company
• E) It is virtually impossible to lose money owning a well-known franchise

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Definitions:

Demographic Segmentation

The process of dividing a market into segments based on demographic factors such as age, gender, income, education, or ethnic background to tailor marketing strategies.

Behavioral Segmentation

A segmentation method that divides customers into groups based on how they use the product or service. Some common behavioral measures include occasion and loyalty.

Geographic Segmentation

A marketing strategy that divides the market into different geographical units such as countries, regions, cities, or neighborhoods.

Benefits Segmentation

A market segmentation technique that categorizes consumers based on the specific benefits they seek from products or services, rather than demographic factors.