Reader's Digest Magazine Plans to Send Millions of People with Different

question 49

Multiple Choice

Reader's Digest magazine plans to send millions of people with different medical conditions,such as high blood pressure,or high cholesterol,a booklet filled with articles and prescription-drug ads,all about the very condition each subscriber has.Reader's Digest is applying benefit segmentation.Which of the following BEST describes benefit segmentation?

• A) It is developed on the basis of what a product will do for the customer rather than on buyer characteristics.
• B) It means simply choosing the most economical and beneficial demographic variable as a segmentation variable,to keep company costs low.
• C) It does not permit marketing managers to build consumer profiles.
• D) It is the strategy of building a competitive advantage over the competition.

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Definitions:

Fair Value

A measure of the price at which an asset could be bought or sold in a current transaction between willing parties, other than in a liquidation sale.

Ethical Challenge

Situations or problems requiring a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).

Acquisition

The process of obtaining control of another company or business entity through purchase, merger, or other means.

Outstanding Shares

Refers to the total number of shares of a corporation's stock that are owned by shareholders at any given time.