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:

Market Price

The current price at which a good or service can be bought or sold in a marketplace, determined by supply and demand.

Firm's Willingness

The degree to which a company is prepared to produce goods or services at a certain price.

Market Price

The price at which a product or service is sold in the open market.

Consumer Surplus

The gap between the price consumers are prepared to pay for a product or service and the actual amount they spend, indicating the value gained by consumers.