A business firm segments its markets when this strategy increases its sales revenue, profit, and ROI. When its increases in expenses more than offset the potentially increased revenues from segmentation, it should:
A)terminate as many employees as possible to save money.
B)not attempt to segment its market any further.
C)reduce production costs, which will lower quality.
D)act as its own distributor.

Question

Quizplus · Accepted Answer

If the expenses of market segmentation outweigh the potential increase in revenue, the firm should not attempt to segment its market any further. This can prevent unnecessary costs and allow the firm to focus on other strategies to increase sales revenue, profit, and ROI. Terminating employees, reducing production costs and lowering quality, or acting as its own distributor are not necessarily effective or appropriate responses to a failed segmentation strategy.

A Business Firm Segments Its Markets When This Strategy Increases