GENERAL KNOWLEDGE

Detailed explanation-1: -Segments become more homogeneous as they increase in size. A set of segments may be very clear from a statistical perspective, but they need to be useful from a managerial point of view. Some companies that tried mass customization have scaled back their attempts because it is not cost-effective.

Detailed explanation-2: -A homogeneous market is a type of marketplace in which each of the products traded in that market are more or less the same, although there may be some minor differences in design.

Detailed explanation-3: -Answer and Explanation: The given statement is false. A small market segment is not always effective. The size of the segment should be chosen by the company’s product offering and target market.

Detailed explanation-4: -Which of the following is true of market segmentation? It helps firms design specific marketing strategies suited for specific market segments.

Detailed explanation-5: -Segmentation helps marketers to be more efficient in terms of time, money and other resources. Market segmentation allows companies to learn about their customers. They gain a better understanding of customer’s needs and wants and therefore can tailor campaigns to customer segments most likely to purchase products.