According to One Criteria,a Selected Segment Must Be Large Enough

question 161

Multiple Choice

According to one criteria,a selected segment must be large enough to warrant developing and maintaining a special marketing mix.Serving the specific needs of this segment must be commercially viable,even if the number of potential customers is small.Which criteria is being referenced?

• A) accountability
• B) substantiality
• C) accessibility
• D) responsiveness

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, reflecting the opportunity cost of capital.

Internal Rate Of Return

A financial metric used to estimate the profitability of potential investments, calculated as the rate that makes the net present value of all cash flows from a particular project equal to zero.

Net Present Value

A calculation of the present value of cash inflows minus the present value of cash outflows over a period of time, used in capital budgeting.

Salvage Value

Salvage value is the estimated resale or scrap value of an asset at the end of its useful life.