The problem with using an undifferentiated strategy to market a "universal car" is that
A)car buyers have homogeneous needs.
B)car buyers have heterogeneous needs.
C)the technology to produce a universal car does not yet exist.
D)car buyers cannot be segmented.
E)other car makers are already using an undifferentiated strategy.

Question

Quizplus · Accepted Answer

Car buyers have heterogeneous needs, which means they have different preferences, budgets, lifestyles, and usage situations. An undifferentiated strategy that tries to appeal to all buyers with the same product, price, and promotional messages may fail to meet the specific needs of different segments, and hence, lose sales to more targeted competitors. Furthermore, the premise of a universal car that satisfies all needs of all buyers is doubtful, as people have different expectations, tastes, and priorities when it comes to cars. Thus, a differentiated strategy that recognizes and reacts to the diversity of the market is more likely to succeed than an undifferentiated strategy that ignores it.

The Problem with Using an Undifferentiated Strategy to Market a "Universal