Micro-Marketing May Cost Too Much Because

question 76

Multiple Choice

Micro-marketing may cost too much because:

• A) firms fail to identify new target markets.
• B) prices are frequently set on a cost-plus basis.
• C) promotion is sometimes seen as a substitute for product quality.
• D) All of the above are true statements.
• E) None of the above--marketing never costs too much!

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Definitions:

Pure Play Approach

Use of a WACC that is unique to a particular project.

WACC

Weighted Average Cost of Capital; a measure of a firm's cost of capital where each category of capital is proportionately weighted.

Capital

Refers to financial assets or their financial value, as well as the tangible factors of production that are used to create other goods and services.

After-Tax Cost

The actual cost of an expense or investment after taking into account the effects of taxes.