When a company decides to pursue a segmentation strategy, customization can cause costs to increase and it is difficult to achieve economies of scale.

Question

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Customization requires tailoring products and services to meet the unique needs of different segments, which can increase costs. Additionally, achieving economies of scale may be difficult as production and distribution processes may need to be adjusted to meet the specific demands of each segment.

When a Company Decides to Pursue a Segmentation Strategy, Customization