Which of the Following Is NOT a Criterion to Use

question 125

Multiple Choice

Which of the following is NOT a criterion to use in forming market segments?

• A)The ability to assign buyers to a segment is cost-effective and simple.
• B)The result of segmenting will cause an increase in market share or profit.
• C)There are significant similarities among buyers in the market segment.
• D)There is a potential marketing action to reach the segment.
• E)The cost to reach the segment exceeds its profitability.

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Definitions:

Law Of Diminishing Returns

An economic principle stating that adding more of one factor of production, while holding others constant, will at a certain point yield lower incremental per-unit returns.

Economies Of Scale

The financial benefits that businesses achieve because of their size of operation, generally seeing a reduction in cost per unit of output as the scale expands.

Medicine And Dentistry

Fields of study and professional practice focused on maintaining and restoring human health through the treatment of diseases and conditions affecting the body and oral health, respectively.

ATC Curve

Short for Average Total Cost Curve, it's a graphical representation used in economics to show how the average total cost of producing a good varies with the level of output.