Gable Brothers Inc

question 90

Multiple Choice

Gable Brothers Inc.is trying to find a viable market for its new fountain pen.After conducting a psychographic segmentation,it found that the segment of potential consumers is so small that the volume in sales would not be profitable for the company.Therefore,top management has decided to not release the product into the market.In the context of the stages of the market segmentation process,the company is currently:

• A)deciding the market segmentation strategy.
• B)delineating the firm's current situation.
• C)dividing markets on relevant dimensions.
• D)determining consumer needs and wants.

Differentiate between the heuristics used in decision-making and problem-solving.

Distinguish between the characteristics of natural and formal concepts.

Understand the use of decision-making strategies and problem-solving heuristics.

Recognize the impact of framing and cognitive biases (like the availability heuristic) on perceptions and decisions.

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Definitions:

Collection Time

The average duration it takes for a company to collect payments owed by its customers, often measured in days.

Average Daily Receipts

The average amount of money a business receives on a day-to-day basis over a specified period.

Opportunity Cost

The cost of foregone alternatives, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.