Which of the Following Statements About Market Segmentation Is Not

question 9

Multiple Choice

Which of the following statements about market segmentation is not true?

• A) Market segmentation is the process of dividing markets into groups of similar customers.
• B) The decision to mass market a product does not require any market segmentation analysis.
• C) Generally, the first step in market segmentation is to delineate firm's current situation.
• D) Consumers are grouped on the basis of one or more similarities and treated as a homogeneous segment of a heterogeneous total market.

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Definitions:

APR

Annual Percentage Rate; a measure that reflects the cost of borrowing money or the return on an investment, including interest and other associated fees, shown as a yearly rate.

Finance Charge

A fee representing the cost of credit or the cost of borrowing money, including interest and other related charges.

Car Loan

A financial agreement in which a lender provides funds to a borrower for the purpose of purchasing a vehicle, to be repaid with interest over a set period.

FICO Score

A score that summarizes the probability that a debtor will pay a debt and is a reliable way that creditors judge credit worthiness.