The 7-Step Approach to Market Segmentation Used in the Text

question 139

Multiple Choice

The 7-step approach to market segmentation used in the text shows that:

• A) qualifying needs can logically be identified once the determining needs are known.
• B) profit is the overall consideration beginning with Step 1.
• C) it's useless to consider what people in each submarket do not want when so much is known about what they do want.
• D) submarkets are nicknamed based on their determining needs.
• E) recreational vehicles in the U.S. is a broad product-market with many submarkets.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since its acquisition.

Trade-In Allowance

The amount credited to the buyer by the seller when a buyer trades in an old item towards the purchase of a new item.

Accumulated Depreciation

The cumulative depreciation expense recorded for an asset from the time it was operational, thereby lowering its recorded value in the balance sheet.

Commercial Substance

A concept in accounting that refers to a transaction significantly altering the cash flows of an entity, necessitating its recognition in financial statements.