To Be Useful,a Segmentation Scheme Must Produce Segments That Meet

question 201

Essay

To be useful,a segmentation scheme must produce segments that meet four basic criteria.Name and briefly describe each of these four criteria.

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Definitions:

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.

Economic Scale

Economies of scale, which refer to the cost advantages that enterprises obtain due to size, output, or scale of operation.

Critical Factors

Essential elements or conditions necessary for the success of a business or project.

New Business

A venture that has been recently established, entering the market with fresh offerings of products or services.