When segmenting broad product-markets, cost considerations tend
A) to encourage managers to disregard the criterion that a product-market segment should be substantial.
B) to lead to more aggregating.
C) to be unimportant as long as the segmenting dimensions are operational.
D) to lead to a large number of small, but very homogeneous, product-market segments.
E) All of these are true.

Question

Quizplus · Accepted Answer

Cost considerations in segmenting broad product-markets tend to lead to more aggregating, meaning that managers may group together multiple smaller segments that have similar characteristics in order to save on marketing research and advertising expenses. This is often done instead of creating a large number of small, but very homogeneous, product-market segments.

When Segmenting Broad Product-Markets, Cost Considerations Tend