Aggregating Prospective Buyers into Groups That (1)have Common Needs and (2)will

question 129

Multiple Choice

Aggregating prospective buyers into groups that (1) have common needs and (2) will respond similarly to a marketing action is referred to as __________.

• A)market aggregation
• B)market segmentation
• C)product segmentation
• D)product grouping
• E)mass marketing

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Definitions:

Differential Analysis

A decision-making process that examines the differences in cost and revenue between different business alternatives to determine the most profitable option.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Outside Purchase

Acquisition of goods or services from external suppliers due to inability or inefficiency in producing internally.

Total Cost Concept

A principle in accounting and economics that considers all costs related to the production of a good or service, both fixed and variable.