Vermont Home Builders Conducted a Study of the Customers in the Housing

question 3

Multiple Choice

Vermont Home Builders conducted a study of the customers in the housing sector,which revealed that there are seven kinds of buyers,each a little different and each differently profitable.Vermont Home Builders decided to focus their attention on the three most profitable segments.In this example,Vermont Home Builders uses which of the following market segmentation strategies?

• A)mass-market strategy
• B)niche-segment strategy
• C)adjacent-segment strategy
• D)multi-segment strategy
• E)subsegment strategy

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Definitions:

Representativeness Bias

A cognitive bias where individuals incorrectly assess the likelihood of an event based on how closely it resembles their stereotypes of a category.

Lack-of-participation Error

A common mistake in decision-making processes, where not all relevant parties are involved, leading to suboptimal outcomes.

Escalating Commitment

A behavioral phenomenon where an individual or group continues to invest in a decision despite evidence of its ineffectiveness.

Confirmation Error

A cognitive bias that involves focusing on information that confirms one's preconceptions and ignoring information that contradicts them.