The degree to which firms should segment their markets depends on the balance the firms want to achieve between the added perceived customer value that segmentation can offer and its cost.

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This statement is true. Firms need to weigh the benefits of segmentation such as increased customer satisfaction, profitability, and efficiency against the cost of implementing and maintaining a segment-specific strategy. The decision of how much to segment their markets is a strategic one that will depend on each firm's goals, resources, and competitive landscape.

The Degree to Which Firms Should Segment Their Markets Depends