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.

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Definitions:

Statistical Functions

Functions built into software that perform calculations on data sets for the purpose of statistical analysis, such as mean, median, variance, and standard deviation.

COUNTIF

A function in spreadsheet applications that counts the number of cells within a range that meet a specified condition.

AVERAGEIF

An Excel function that calculates the average of all numbers in a range that meet specified criteria.

Financial Functions

Specific mathematical formulas used in spreadsheets or financial software to perform calculations related to finance, such as interest rates, payments, and investment returns.