“Consumer is always a rational human being. Hence economic basis for segmentation is the most appropriate method.” Do you agree with this statement? Give reasons.
Answers
consumer is always a rational human being. Hence economic basis for segmentation
Consumer is always a rational human being. Hence economic basis for segmentation is the most appropriate method.
Explanation:
According to MARSHALLIAN MODEL, the consumers are assumed to be rational and conscious about economic calculations. They follow the law of marginal utility. Hence the economic basis for segmentation is the most appropriate method.
Market segmentation is the study of the market place to discover a viable community of buyers who are homogeneous in their approach to the collection and use of products and services. Because the market segment has specific needs, a company that produces a product based specifically on the needs of that segment would be able to satisfy the demand of the target group and have more value for the customer than the competitor.