People's diverse interests and backgrounds divide them into numerous groups with distinct needs and wants, a condition most accurately described as ________.
A) market aggregation
B) market positioning
C) economic aggregation
D) differentiation
E) market fragmentation

Question

Quizplus · Accepted Answer

Market fragmentation refers to the division of the market into smaller groups with distinct needs and wants based on people's diverse interests and backgrounds. It creates challenges and opportunities for businesses to cater to specific target markets and offer personalized products and services. Market aggregation (A) refers to combining similar market segments into a larger group for marketing purposes. Market positioning (B) is the process of establishing a distinctive image and reputation for a brand in the minds of consumers. Economic aggregation (C) is a concept in economics that refers to combining economic data for a region or country to analyze its performance. Differentiation (D) is a marketing strategy that involves creating a unique value proposition for a product or service to stand out from competitors.

People's Diverse Interests and Backgrounds Divide Them into Numerous Groups