The Process of Dividing a Market into Distinct Subsets of Consumers

question 11

Multiple Choice

The process of dividing a market into distinct subsets of consumers with common needs or characteristics is known as ________.

• A) target marketing
• B) market segmentation
• C) mass marketing
• D) the marketing concept
• E) market evaluation

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Definitions:

Perfect Competition

A market structure characterized by an infinite number of small firms, identical products, no barriers to entry or exit, and perfect information, leading to price takers.

Patents and Copyrights

Legal protections for inventors and creators to exclusively commercialize their innovations and creative works for a certain period.

Barriers to Entry

Economic, procedural, regulatory, or technological factors that obstruct or restrict the ability of new competitors to enter and compete in an industry.

Price Takers

Economic agents in a market who accept the prevailing market price as given because they have no power to influence it.