After Identifying a Target Market,a Retailer Must

question 65

Multiple Choice

After identifying a target market,a retailer must:

• A)concentrate on determining the ideal levels of inventory to be maintained.
• B)devise marketing plans to expand their target market.
• C)develop marketing strategies to attract chosen customers to its stores or websites.
• D)segment the market based on factors such as family income and customer lifetime value.

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Definitions:

Pigouvian Tax

A tax imposed on activities that generate negative externalities, aimed at correcting an inefficient market outcome.

Marginal Social Benefits

The incremental benefit the public receives from consuming an additional unit of a good or service.

Marginal Private Benefits

The additional benefits received by an individual or firm from consuming or producing one extra unit of a good, not considering external effects.

Government Intervention

Actions taken by the government to influence or regulate various activities and outcomes in the economy, such as setting taxes, subsidies, regulations, and price controls.