Final answer:
Using macro-level statistics for segmentation in developing markets can be problematic as it may result in skewed data and fail to reveal the presence of higher-income segments. It is important to consider qualitative research and more granular data to develop accurate market segmentation strategies.
Step-by-step explanation:
Using macro-level statistics as a basis for segmentation in developing markets can be dangerous because the data can be skewed. Averages will not reveal the presence of higher-income segments, leading to a potential misrepresentation of the market. For example, if the average income in a country is low, it may lead to the assumption that the entire population belongs to a lower-income segment, when in reality there may be a significant number of higher-income individuals.
Additionally, income and population do have significance to segmentation. By solely relying on macro-level statistics, important nuances within the population such as income disparities and varying consumer behaviors may be overlooked. This can result in ineffective marketing strategies that do not cater to the specific needs and preferences of different segments.
Therefore, it is important to consider qualitative research and more granular data in addition to macro-level statistics when developing market segmentation strategies in developing markets.