Which of the Following Statements Regarding Market Segmentation Is Most

question 98

Multiple Choice

Which of the following statements regarding market segmentation is most accurate?

• A)Even if a firm finds only one potential market segment, it should take advantage of the opportunity no matter what.
• B)Market segmentation only works for large corporations because small businesses don't have a lot of money either for the process or the corresponding actions.
• C)You should not try market segmentation unless you are willing to create or carry additional products.
• D)If a business firm goes to the trouble and expense of segmenting its markets, it expects to reveal a way to increase sales, profits, and return investment.
• E)Market segmentation strategies work less than 25% of the time, however, for the times it does work, the benefits more than compensate for previous failures.

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Definitions:

Expected Number

A statistical term referring to the average value or mean of a random variable, calculated as the sum of all possible values each multiplied by its probability of occurrence.

Unbiased Coin

A term used to describe a fair coin in which each toss is equally likely to come up heads or tails.

Speed Limits

Legal restrictions on the maximum speed at which vehicles may travel on a road.

Binomial Experiment

A statistical experiment that satisfies four conditions: a fixed number of trials, only two possible outcomes, independence of trials, and a constant probability of success.