When Looking at Demographic Dimensions, Marketers Should

question 24

Multiple Choice

When looking at demographic dimensions, marketers should:

• A) know that it is illegal to segment markets based on membership in some racial or ethnic group.
• B) know that demographics are especially helpful in explaining why specific people buy specific brands.
• C) recognize that demographics can be very useful for estimating the market potential of possible target markets.
• D) understand that ethnic groups are generally homogeneous within.
• E) All of the above are correct.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (standard) cost of those materials.

Direct Labor-hours

The total hours worked by employees directly involved in the production process, used as a basis for allocating labor costs to products or services.

Variable Overhead Rate Variance

The difference between the actual variable overhead cost incurred and the expected (standard) cost, based on the actual level of activity.

Direct Labor Standards

The expected labor time and cost that should be incurred under normal conditions to produce a unit of output.