Gable Brothers Inc., is trying to find a viable market for its new brand fountain pen. After conducting a psychographic segmentation, it found that the segment of potential consumers is so small that the volume in sales would not be profitable for the company. Therefore, top management has decided to not release the product into the market. In the context of the stages of the market segmentation process, the company is currently:
A) deciding the market segmentation strategy.
B) delineating the firm's current situation.
C) dividing markets on relevant dimensions.
D) determining consumer needs and wants.

Question

Quizplus · Accepted Answer

The company is deciding the market segmentation strategy by evaluating the potential profitability of the identified segment and deciding not to pursue it.