Question

Some people want healthy cereal that will help them lose weight or possibly prevent certain kinds of cancer. Some want pre-sweetened cereal. Some want fruits and nuts in their cereal. Some people want whole wheat cereal while others want rice cereal. There are some who like hot cereal and others who like to eat their cereal right out of the box. The diversity of consumers for cereal is an example of ________.

Answer 1

This is an example of market fragmentation.

Step-by-step explanation:

Market fragmentation can be defined as the concept that all markets are segmented and divided into different fragments, based on different needs, wants and behavior.

All markets ,over time, break down into different group of consumers or we can say fragments especially as they grow.

Here, the market for cereals is divided on the basis of consumer's needs wants and tastes. So, it is an example of market fragmentation.