By developing too many product alternatives, a marketer can oversegment its market. By oversegmenting the market, opportunities for additional sales are small, while overall costs and consumer confusion may rise significantly.

Question

Quizplus · Accepted Answer

Oversegmentation can lead to diminishing returns as the costs of targeting increasingly specific segments outweigh the benefits, and it can also confuse consumers with too many choices, potentially reducing overall sales.

By Developing Too Many Product Alternatives, a Marketer Can Oversegment