Which of the following in 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, as it would not make business sense to target a segment that would not generate profits. The other criteria listed (ability to assign buyers to a segment cost-effectively and easily, potential for increased market share or profit, significant similarities among buyers in a segment, and the presence of marketing actions to reach the segment) are all important factors to consider when forming market segments.

Which of the Following in NOT a Criterion to Use