Which of the segmenting strategies carries higher-than-average risks in consumer markets?
A) concentrated
B) mass
C) differentiated
D) undifferentiated
E) multiple-segment

Question

Quizplus · Accepted Answer

Concentrated segmentation strategy focuses on a narrow and specific market segment with a single marketing mix. This strategy carries a higher-than-average risk in consumer markets because any change in the market or consumer behavior could affect the whole business, and the company may lose its entire customer base. In contrast, differentiated, undifferentiated, and multiple-segment strategies distribute risks across various segments, reducing the dependency on any specific segment. Mass segmentation strategy carries low risk as it targets the entire market with a standardized offering.

Which of the Segmenting Strategies Carries Higher-Than-Average Risks in Consumer