The Purpose of Market Segmentation Is To

question 45

Multiple Choice

The purpose of market segmentation is to:

• A)change consumer attitudes and beliefs toward a product.
• B)divide a market into submarkets of equal size and equal number of customers.
• C)eliminate the need for defining marketing objectives.
• D)enable a marketer to tailor marketing mixes to meet the needs of one or more specific segments.

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Definitions:

Endowment Effect

A psychological phenomenon in which people value an owned object higher than a similar object they do not own.

Resale

The act of selling a previously bought product, typically used, to another buyer.

Status Quo Bias

The tendency for people to prefer things to stay the same by doing nothing or sticking with a decision made previously.

Prospect Theory

A psychological theory that describes how people make decisions based on the potential value of losses and gains rather than the final outcome.