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:

Probability Distribution

A function that describes the likelihood of different outcomes in an experiment.

Sample Mean

The average value of all the measurements in a sample, calculated by adding all the values and dividing by the number of observations.

Probability Density Function

A function used to compute probabilities for a continuous random variable. The area under the graph of a probability density function over an interval represents probability.

Sampling Distribution

A statistical distribution of all possible samples that can be taken from a given population.