What phenomenon recognizes that as market segmentation increases, sales increase; but as market segmentation increases, costs also increase?
A)Cannibalization
B)Sales-cost trade-off
C)Customer preference heterogeneity
D)Majority fallacy
E)Expenses to sales ratio

Question

Quizplus · Accepted Answer

The sales-cost trade-off recognizes that as market segmentation increases, sales increase due to better targeted marketing efforts; but as market segmentation increases, costs also increase due to the need for more specialized marketing and production. This trade-off needs to be carefully managed to ensure profitability. The other options are not directly related to the phenomenon described.

What Phenomenon Recognizes That as Market Segmentation Increases, Sales Increase;