A producer of electrical components combined electrical supply wholesalers and manufacturers of electrical equipment into the same market segment-one of several segments it was targeting. Soon it lost the manufacturers' business to a competitor. It seems that the firm failed to consider the risk of
A) too much aggregating.
B) insulting the manufacturers by putting them in the same market segment with the wholesalers.
C) picking market segments based on qualifying dimensions.
D) selecting market segments that were not substantial.
E) using too many segmenting dimensions.

Question

Quizplus · Accepted Answer

The producer of electrical components made the mistake of aggregating the electrical supply wholesalers and manufacturers of electrical equipment into the same market segment. This means that they treated both types of customers as if they had the same needs and wants, which may not be the case. This type of over-aggregation can lead to the loss of important customers, such as the manufacturers that the firm lost to a competitor.

A Producer of Electrical Components Combined Electrical Supply Wholesalers and Manufacturers