The Process of Dividing a Market into Groups of Similar

question 92

Multiple Choice

The process of dividing a market into groups of similar consumers and selecting the most appropriate group(s) for the firm to serve is called _____.

• A)test marketing
• B)mass marketing
• C)market segmentation
• D)marketing communication

---

Definitions:

Aging Schedule

A tabulation of accounts receivable broken down by age, typically in 30-day increments, to assess the collectibility of the receivables.

Cash Discount

A reduction in the price of goods or services offered by the seller to the buyer for prompt payment.

Credit Cost Curve

Illustrates the relationship between the cost of credit (interest rates) and the amount of credit available in the market.

Carrying Cost Curve

A graphical representation showing the total cost of holding inventory over time.