Clustering Techniques Applied to Segmenting Markets

question 163

Multiple Choice

Clustering techniques applied to segmenting markets

• A) usually require computers to group people based on data from market research.
• B) remove the need for managerial judgment.
• C) eliminate the need for marketing managers to specify in advance what dimensions might be relevant for grouping consumers.
• D) All of these alternatives about clustering techniques are true.

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Definitions:

Variable Cost

Costs that vary directly with the level of production or sales volume, such as materials and labor.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

Manufacturing Overhead

All factory-related costs that are incurred during the manufacturing process, excluding direct materials and direct labor.