Which of the Following Is Not an Assumption Upon Which

question 18

Multiple Choice

Which of the following is not an assumption upon which the concept of market segmentation is based?

• A) Travel organizations will market more effectively if they develop specific services and products for specific market segments.
• B) It is always less expensive to use a segmented approach.
• C) Travelers can be divided into groups, which share similar characteristics.
• D) A travel destination or service will appeal to some market segments more than others will.
• E) The total travel market is made up of people with distinctive needs and preferences.

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Definitions:

Optimal Consumption

The mix of goods and services that maximizes a consumer's utility given their budget constraints.

Initial Endowment

The initial quantity of goods, services, or resources an individual, institution, or country possesses at the start of an economic analysis.

Relative Prices

The price of one good or service compared to another, indicating their exchange rate in the market.

Normal Good

A type of good for which demand increases when income increases and falls when income decreases, with other factors being constant.