Which of the following correctly summarizes the process of segmenting a market into groups? The decision-maker should ensure that
A)there are differences in elasticities and costs of production across groups.
B)demand differs across groups and that consumers are separated based on easily verifiable and hard-to-change characteristics.
C)demand is equal and reservation prices are different across groups.
D)marginal benefit and group sizes vary across groups, and that demand curves are elastic.

Question

Quizplus · Accepted Answer

The process of segmenting a market into groups requires identifying differences in demand across groups and grouping consumers based on characteristics that are easily observable and difficult to change. This allows for targeted marketing efforts and customized products or services to meet the specific needs of each group. Differences in elasticities and costs of production (A), reservation prices (C), and marginal benefit (D) may all be considered when segmenting a market, but they are not the primary factors that determine group segmentation.

Which of the Following Correctly Summarizes the Process of Segmenting