Which term refers to a company deciding where to establish its operations?

• A. Price discrimination
• B. Location decision
• C. Market segmentation
• D. Product differentiation

Answer: (B)

Verified step by step guidance

1. Understand the meaning of each term provided in the options to identify which one relates to a company deciding where to establish its operations.
2. Price discrimination refers to charging different prices to different consumers for the same product, based on willingness to pay or other factors, not related to location choices.
3. Market segmentation involves dividing a market into distinct groups of consumers with similar needs or characteristics, which helps in targeting but does not directly refer to location decisions.
4. Product differentiation is about making a product stand out from competitors through unique features or branding, unrelated to the physical location of operations.
5. Location decision specifically refers to the process where a company chooses the geographical place to set up its operations, considering factors like costs, access to markets, and resources.