GENERAL KNOWLEDGE

Detailed explanation-1: -size does not always correlate with future growth potential. top-down and bottom-up perspectives are available to assess the attractiveness of each segment in terms of its potential for targeting, but only top-down perspective should be considered.

Detailed explanation-2: -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-3: -True Explanation: Strategic fit means there is a good match of a target market to the firm’s internal structure, culture, goals, and resource capabilities. Effective positioning is not affected by competitive forces.

Detailed explanation-4: -The first stage of the Consumer Decision Making Process, need recognition takes place when a consumer identifies an unmet need.

Detailed explanation-5: -Age is an easily identifiable demographic variable. “Current users” are relatively difficult to communicate with. Older couples who are empty nesters dream of spending their greater discretionary income on technology and furniture.