Final answer:
After market segmentation, groups are evaluated based on factors such as market size, growth, accessibility, and company goals. Factor markets and payments, like labor wages and financial capital interest, are also essential. Economists handle changing market factors using multivariate analysis to understand market dynamics.
Step-by-step explanation:
After segmenting the market, groups are evaluated based on a variety of factors to determine their viability and attractiveness as target markets. These factors often include, but are not limited to, the market size, growth potential, market accessibility, and compatibility with the company’s objectives and resources. Economists and marketers also analyze factor payments, considering aspects like wages for labor and interest for financial capital, which are determined in their respective factor markets. For instance, when focusing on labor markets, an understanding of wages and employment trends is crucial.
When dealing with changing market factors, economists adopt models that can accommodate multiple variables at once, enabling them to isolate the effects of one variable by holding others constant. This is often accomplished through the use of statistical methods such as multivariate analyses, where the relationship between a dependent variable (like price or quantity demanded) and several independent variables (like income, prices of related goods, and consumer preferences) is examined. This approach helps in understanding and forecasting market dynamics even when multiple factors are shifting simultaneously.