Which of the Following Statements About Market Segmentation Is True

question 15

Multiple Choice

 Which of the following statements about market segmentation is true? 

• A) According to the model of market segmentation analysis, the process usually begins with deciding the segmentation strategy to be used.
• B) Market segmentation analysis precedes the determination of consumer needs and wants.
• C) The logic of market segmentation is that a single product item can seldom meet the needs and wants of all consumers.
• D) According to the model of market segmentation analysis, the process begins with designing the marketing mix strategy.

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Definitions:

Skimming Pricing Strategy

A pricing approach where a relatively high price is set for a new product or service at its launch to maximize profitability before aiming at more price-sensitive customers.

Odd Pricing Strategy

A pricing strategy where prices are set slightly below a round number, e.g., $19.99, to make products appear less expensive.

Standardization

The process of implementing and developing technical standards to maximize compatibility, efficiency, and quality among products and systems.

Differentiation

A marketing strategy where a company designs its products or services to be unique and attractive to a specific customer segment, setting it apart from competitors.