Market Segmentation Is

question 58

Multiple Choice

Market segmentation is

• A)the process of categorizing products into different segments.
• B)the process of identifying a specific set of characteristics that differentiate one group of consumers from the rest.
• C)the process of segmenting the sales force.
• D)heavily psychographic in nature.

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Definitions:

Average Product

The output per unit of input, typically calculated by dividing total product by the quantity of input used in its production.

Marginal Product

The additional output gained by employing one more unit of input, such as labor or capital.

Marginal Product

The extra output that is produced by using one more unit of a factor, such as labor or capital, while keeping other factors constant.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable.