Market Segmentation Refers to

question 121

Multiple Choice

Market segmentation refers to

• A) identifying small groups of customers with dissimilar needs.
• B) aggregating prospective buyers into groups and selecting only those whose needs cannot be met by competitors' products.
• C) aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.
• D) aggregating different products into more reasonable product groupings to better serve consumers' needs.
• E) those characteristics of a product that make it superior to competitive substitutes.

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Definitions:

Efficiency Results

Describes outcomes achieved in a manner where resources are used optimally to produce desired outputs with minimum waste or inefficiency.

Minimum ATC

Refers to the lowest point on the Average Total Cost curve, where a firm is producing goods at the minimum possible cost per unit.

P > MC

A condition suggesting that the price of a product is greater than its marginal cost, which is often used to indicate potential profitability in a competitive market.

Payoff Matrix

A table that shows the potential outcomes of a strategic decision made by two or more players, highlighting the benefits or losses based on each player's decisions.