Which of the following is not a criterion to use in forming market segments?
A)The ability to assign buyers to a segment is cost-effective and simple.
B)The result of segmenting will cause an increase in market share or profit.
C)There are significant similarities among buyers in the market segment.
D)There is a potential marketing action to reach the segment.
E)The cost to reach the segment exceeds its profitability.

Question

Quizplus · Accepted Answer

The cost to reach the segment exceeding its profitability is not a criterion to use in forming market segments. In fact, this would be a reason to not pursue that particular segment as it would not be financially viable. The other criteria listed, such as cost-effective and simple assignment of buyers to a segment, presence of significant similarities among buyers in the segment, and the existence of a potential marketing action to reach the segment are all important considerations in forming market segments. The ultimate goal of market segmentation is to increase market share or profit, making the second criterion listed also relevant.

Which of the Following Is Not a Criterion to Use