Washburn Guitars Markets Its Guitars to Four Distinct Market Segments

question 143

Multiple Choice

Washburn Guitars markets its guitars to four distinct market segments. The firm's mass-produced instruments are targeted at

• A) first-time buyers.
• B) professional musicians.
• C) stars and famous musicians.
• D) guitar collectors and music aficionados.
• E) intermediate-skill players who may become professional musicians.

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Definitions:

Price-fixing

The practice where businesses conspire to establish prices at a certain level, rather than letting them be determined by free-market forces.

Herfindahl Index

A measure of market concentration that is calculated by squaring the market share of each firm competing in a market and then summing the resulting numbers.

Economic Concentration

The degree to which a small number of firms occupy a large proportion of the market in a particular industry.

Market Shares

The portion of a market controlled by a particular company or product.