The Process of Dividing a Larger Market into Smaller Groups

question 19

Multiple Choice

The process of dividing a larger market into smaller groups based on meaningfully shared characteristics is referred to as

• A)mass marketing.
• B)concept testing.
• C)market segmentation.
• D)positioning.
• E)market fragmentation.

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Definitions:

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product or service.

Increase Quantity

A strategy or action aimed at raising the amount of goods or services produced or available.

Maximum Willingness to Pay

The highest amount a consumer is willing to spend on a good or service, reflecting the perceived value.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay.