1. The segmentation approach used by most companies is suboptimal. The basis of market segmentation they use is most often based on:
Their frequency of purchase.
Family and cultural situations.
Their response to marketing efforts.
Simple demographics
Psychographics
2. What are the values of u, the up state multiplier, and d, the down state multiplier, if there are monthly intervals and the standard deviation is .38?
? 1.1159; .8961 ? .0317; 1.0327 ? .0317; .9683 ? .2193; .7807 ? 1.1159; -.1159.