When Segmenting Markets, Why Can't Managers Simply Choose One or Two

question 132

Multiple Choice

When segmenting markets, why can't managers simply choose one or two demographic characteristics around which to define their target group?

• A) It puts marketers at risk of discrimination lawsuits.
• B) Customer behavior is too complex to be explained in terms of just one or two demographic characteristics.
• C) Demographic characteristics do not influence buying behaviors.
• D) It will fail to produce a homogeneous group.
• E) Market segments must be based on three or more dimensions to be valid.

---

Definitions:

Lot Size

The quantity of inventory items that a company orders or produces in a single production run or order, affecting inventory costs and management strategies.

Product Differentiation

A marketing strategy that involves distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Pull Phase

A stage in supply chain management where production and distribution are driven by actual demand rather than forecasted demand.

Postponement

A strategy of delaying the final production or distribution of a product until customer orders are received to reduce inventory costs and increase customization.