How do companies pursuing customer segmentation as a differentiation strategy become successful?
A)By grouping customers based on similar needs
B)By designing a specific product for each customer
C)By creating products that meet the needs of their entire customer base
D)By allowing customers to customize their products based on their individual preferences

Question

Quizplus · Accepted Answer

Companies pursuing customer segmentation as a differentiation strategy become successful by grouping customers based on similar needs. This allows them to tailor their marketing efforts and product offerings to meet the unique needs and preferences of each customer segment. They can also differentiate themselves from competitors who may not be as targeted in their approach. Designing a specific product for each customer (B) or allowing customers to customize their products based on their individual preferences (D) can also be effective strategies, but they are not the only or necessarily the best approaches. Creating products that meet the needs of the entire customer base (C) is not an effective differentiation strategy because it does not address the unique needs and preferences of each customer segment.

How Do Companies Pursuing Customer Segmentation as a Differentiation Strategy