Which of the Following Statements Regarding When and How to Segment

question 71

Multiple Choice

Which of the following statements regarding when and how to segment markets is most accurate?

• A) Even if a firm finds uniform needs across all users, it should take advantage of the method to avoid falling behind its competitors.
• B) Market segmentation is only feasible for large corporations; small businesses don't have the resources to engage in the process.
• C) Governments should not attempt market segmentation because the strategy is only applicable for consumer and organizational markets.
• D) If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment.
• E) Market segmentation strategies work less than 10 percent of the time.

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Definitions:

Assembly-Line Plant

A manufacturing facility where products are assembled in a sequential manner along a conveyor belt or line.

Average Variable Cost (AVC)

The cost per unit produced that varies, found by dividing the total variable expenses by the amount of output generated.

Marginal Cost Curve

A graphical representation that shows how the cost of producing one additional unit of a good or service changes as production increases.

Average Total Cost (ATC)

The total cost of production divided by the total quantity produced, representing the per unit cost.