Which of the Following Statements Regarding Market Segmentation Is Most

question 148

Multiple Choice

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

• A)The bases for segmenting markets and the bases of selecting the segments from the alternatives are basically the same.
• B)If a new segment is identified as having high growth potential, it is important to alter the company's organizational objectives.
• C)It is important not to select too many segments even if individually they all have potential for increased sales or profits.
• D)Expected growth is entirely dependent upon the marketing actions a firm is willing to take.
• E)There are three criteria used for selecting a target segment-potential profits-relative market share-and consensus amongst the firm's decision makers.

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Definitions:

Monopolist

An entity or firm that is the exclusive provider of a product or service in a market, enabling it to control prices and market conditions.

Market Demand

The total quantity of a product that consumers are willing and able to purchase at various prices during a specific time period.

Marginal Costs

The additional financial burden of creating one more unit of a product or service.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating its responsiveness to price changes.