Market segmentation refers to identifying distinct groups of consumers whose purchasing behavior differs from others in important ways.

Question

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Market segmentation is the process of dividing a larger market into smaller groups of consumers with similar needs, preferences or behaviors. The goal is to identify distinct groups whose characteristics are relevant to the marketer, so that they can tailor their marketing mix to better meet the needs of each segment. These segments must be clearly distinguishable and respond differently to marketing efforts, in order to justify the additional cost and effort of targeting them separately. Therefore, statement A is true.

Market Segmentation Refers to Identifying Distinct Groups of Consumers Whose