Which of the following is true with regard to a market segment?
A) A market segment consists of consumers with dissimilar needs and preferences.
B) A market segment consists of consumers who respond in a similar way to a given set of marketing efforts.
C) Very few markets have segments.
D) Dividing the market into segments decreases the efficiency of the selling process.
E) Dividing the market into segments reduces composite demand.

Question

Quizplus · Accepted Answer

A market segment is a group of consumers who share similar needs and characteristics. The purpose of segmenting the market is to identify groups of consumers that are likely to respond similarly to a particular marketing mix or promotional campaign. Therefore, option B is correct as it defines market segmentation in terms of similar responses to marketing efforts. Option A is incorrect as a market segment may consist of consumers with similar needs and preferences. Option C is incorrect as many markets have multiple segments, and segmentation is a common practice in marketing. Option D is incorrect as market segmentation increases the efficiency of the selling process by allowing marketers to target specific groups of consumers with tailored marketing efforts. Option E is incorrect as market segmentation actually helps identify specific demand patterns for different segments, leading to a better understanding of composite demand.

Which of the Following Is True with Regard to a Market