What Variables Must Be Considered When a Corporation Uses the Option

question 63

Essay

What variables must be considered when a corporation uses the option pricing model?

---

Definitions:

Demographic Segmentation

The process of dividing a market into segments based on demographic factors such as age, gender, income, education, and family size.

Geodemographic Segmentation

The process of dividing a market into smaller groups based on geographic location and demographic characteristics for targeted marketing strategies.

Psychographic Segmentation

The division of a market into different segments based on consumers' personality traits, values, attitudes, interests, and lifestyles.

Benefit Segmentation

A strategy in marketing that categorizes a market into various segments, focusing on the distinct advantages customers look for in a product.