Which Is the First Step in Market Segmentation

question 206

Multiple Choice

Which is the first step in market segmentation?

• A) Finding one or two demographic characteristics to divide up the whole mass market.
• B) Clustering people with similar needs into a market segment.
• C) Naming a broad product-market of interest to the firm.
• D) Evaluating market segments to determine if they are large enough.
• E) None of these alternatives is the first step in market segmentation.

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Definitions:

Subscription Price

The amount a subscriber pays to purchase a new issue of securities.

Market Price

The current offer price at which one can engage in buying or selling an asset or service.

Prospectus

Legal document describing details of the issuing corporation and the proposed offering to potential investors.

Dutch Auction

An auction in which the auctioneer starts with a high asking price which is lowered until some participant is willing to accept the auctioneer's price.