Which of the Following Is NOT True About the Implications

question 26

Multiple Choice

Which of the following is NOT true about the implications for cost and revenue and market segmentation?

• A) A segmentation strategy is typically associated with lower costs than a standardization strategy.
• B) A standardization strategy involves a company producing one basic offering and trying to attain economies of scale by achieving high-volume sales.
• C) A segmentation strategy requires that a company customize its product offering to different segment which causes it to sell less of each offering, making it harder to achieve economies of scale.
• D) A segmentation strategy requires that a company customize its product offering to different segments and products targeted at segments at the higher-income end of the market may require more functions and features, which can raise the costs of production and delivery.
• E) A segmentation strategy can allow a company to capture incremental revenues by customizing its offerings to the needs of different groups of consumers and thus selling more in total.