Best Foods Co. is considering expanding beyond the regional market segments now served by its Hellmann's mayonnaise. One criterion management wants to use to evaluate potential new geographic market segments is whether additional real estate must be purchased or leased to serve new segments. This is an example of which criterion used to select target market segments?
A) Best Foods' competitive position in the segment
B) Best Foods' product groupings
C) expected growth of the market segment
D) size of the market segment
E) cost of reaching the segment

Question

Quizplus · Accepted Answer

The criterion of whether additional real estate must be purchased or leased relates to the cost of reaching the segment, as it involves evaluating the financial implications of expanding into new geographic areas.