The most likely reason that most large consumer oriented firms use a differentiated/heterogeneous target segmentation strategy is because: Firms that select and sell to only one segment tend to produce more revenue A than firms that sell products to many different segments. If consumer demand suddenly declines, single segment sales revenue is unaffected since firms that concentrate on a single market segment are less likely to suffer from В economic downturns. Manufacturers that offer different brands/ products in the same category (i.e., think car firms and the various models they offer) C gain access to a larger share of the overall market, which tends to increase overall sales revenue. A differentiation/heterogeneous segmentation strategy allows firms to focus on only one segment at a time. D

The most likely reason that most large consumer oriented firms use a differentiated/heterogeneous target segmentation strategy is because: Firms that select and sell to only one segment tend to produce more revenue A than firms that sell products to many different segments. If consumer demand suddenly declines, single segment sales revenue is unaffected since firms that concentrate on a single market segment are less likely to suffer from В economic downturns. Manufacturers that offer different brands/ products in the same category (i.e., think car firms and the various models they offer) C gain access to a larger share of the overall market, which tends to increase overall sales revenue. A differentiation/heterogeneous segmentation strategy allows firms to focus on only one segment at a time. D

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition

Section: Chapter Questions

Problem 1E

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