A Producer of Electrical Components Combined Electrical Supply Wholesalers and Manufacturers

question 91

Multiple Choice

A producer of electrical components combined electrical supply wholesalers and manufacturers of electrical equipment into the same market segment-one of several segments it was targeting. Soon it lost the manufacturers' business to a competitor. It seems that the firm failed to consider the risk of

• A) too much aggregating.
• B) insulting the manufacturers by putting them in the same market segment with the wholesalers.
• C) picking market segments based on qualifying dimensions.
• D) selecting market segments that were not substantial.
• E) using too many segmenting dimensions.

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Definitions:

Formal Operations

A stage in Piaget's theory of cognitive development where abstract, logical, and systematic thinking emerges, typically during adolescence.

Rationales

Explanations or reasons for an action or belief, often used to justify decisions and behaviors.

Primacy Effect

The tendency to remember information at the beginning of a list better than information in the middle or at the end.

Halo Effect

A cognitive bias where an individual's overall impression of a person influences how they feel and think about that person's character.