Which of the following is one of the basic principles behind segmentation?
A) All customers are alike.
B) Subgroups of customers are not similar.
C) Subgroups will be smaller and more homogeneous than the overall market.
D) Members of a heterogeneous market cannot allow for dividing the market into subgroups.
E) In an undifferentiated market, each person has unique needs and wants.

Question

Quizplus · Accepted Answer

The basic principle behind segmentation is that subgroups will be smaller and more homogeneous than the overall market. This allows for targeted marketing efforts that are more effective in reaching specific customer groups. The other options are incorrect; A is false because customers are not all alike, B is false because subgroups do share similarities, D is false because heterogeneity actually supports market segmentation, and E is false because undifferentiated markets are not considered in the context of segmentation.

Which of the Following Is One of the Basic Principles