The principal distinction between segmentation and differentiation is that segmentation is a strategic choice by a firm while differentiation is a feature of market structure.

Question

Quizplus · Accepted Answer

The statement is false. Segmentation and differentiation are both strategic choices made by firms to achieve a competitive advantage. Segmentation is the process of dividing a larger market into smaller groups of consumers with similar needs or characteristics, while differentiation is the process of creating a unique product or service that stands out from competitors in the market.

The Principal Distinction Between Segmentation and Differentiation Is That Segmentation