What Is the Difference Between Differentiation and Segmentation

question 39

Multiple Choice

What is the difference between differentiation and segmentation?

• A)There is no difference between the two
• B)Differentiation deals with "how" a firm chooses to compete, while segmentation describes "where" in the entire market a firm chooses to compete
• C)Differentiation is a firm's strategic choice, whereas segmentation is given by its environment
• D)Segmentation is the head of the marketing department's responsibility, whereas the CEO is in charge of differentiation

---

Definitions:

Supply

The total amount of a product or service available for purchase at any given price level.

Quantity Supplied

The total amount of a product or service that producers are willing and able to sell at a given price in a specific time period.

Supply

The aggregate supply of a certain item or service made available for consumer purchase.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating its sensitivity to price changes.