Final answer:
The danger in using macro-level statistics for segmentation in developing markets lies in the fact that these statistics can hide income inequality and do not account for varying income levels or wealth distribution within a country. They can be skewed by high-income groups, thereby providing an inaccurate representation for market segmentation or policy-making.
Step-by-step explanation:
When considering which of the following explains why it is dangerous to use macro-level statistics as a basis for segmentation in developing markets, it is important to understand that such statistics may not accurately reflect the underlying economic realities of different segments within the market. Option D) Inequality will not be revealed is a significant concern. Macro-level statistics, like GDP per capita, can mask the extent of income inequality within a country because they represent an average. When averages are used, they can hide the extreme variations within the populace, specifically the presence of higher-income segments (Option B) or significant low-income groups.
Moreover, these statistics can be skewed by the extreme wealth of a small portion of the population, which gives a misleading picture of the general economic status of the majority (Option E). Measuring income inequality often involves segmenting the population into different groups and comparing the distribution of income across these segments, identifying not just the poor but also those on different levels of the income scale.
Therefore, when targeting markets and crafting economic policies, relying solely on macro-level statistics can lead to ineffective or unjust economic strategies, as they do not provide a comprehensive picture of the societal wealth and income distribution.