Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
targeting the same consumers with different products
B
charging a fixed price for all consumers
C
reducing production costs
D
eliminating competition
Understanding the Answer
Let's break down why this is correct
Answer
Market segmentation is like dividing a big group of people into smaller groups based on their different needs or characteristics. Just as price discrimination means charging different prices for the same product to different people, market segmentation helps businesses tailor their products or services to meet the specific desires of each group. For example, a company might sell a basic version of a software program for students at a lower price, while offering a more advanced version for professionals at a higher price. This way, the company can attract a wider range of customers while ensuring that each group feels they are getting a product that fits their needs. Both strategies aim to maximize sales and satisfaction by recognizing that not everyone values a product the same way.
Detailed Explanation
Market segmentation means dividing consumers into groups. Other options are incorrect because Some might think that market segmentation means treating everyone the same; It's easy to confuse cost-saving with market segmentation.
Key Concepts
Price Discrimination
Market Segmentation
Consumer Elasticity
Topic
Understanding Price Discrimination
Difficulty
easy level question
Cognitive Level
understand
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