Market Segmentation Is

question 56

Multiple Choice

Market segmentation is

• A) breaking down a large, heterogeneous market into submarkets that are more homogeneous.
• B) aggregating small, homogeneous submarkets into a large, homogeneous market.
• C) creating a perceived difference in the mind of the consumer between the advertiser's brand and competitors' brands.
• D) identifying a competitive niche the brand will occupy.

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Definitions:

Price

The cash amount projected, called for, or allocated in settlement for a product.

Quantity

The amount or number of a material or immaterial good that is considered separately.

Consumer Surplus

The gap between the total sum consumers can and will pay for a good or service versus what they actually spend.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, measured above the supply curve.