Final answer:
Overstating the size and short-term attractiveness of a market segment is a potential pitfall of market segmentation. It's important to balance qualitative and quantitative data and to ensure unbiased, comprehensive sampling.
Step-by-step explanation:
One potential pitfall associated with market segmentation is B. Overstating the size and short-term attractiveness of a market. This can lead to a misallocation of resources and strategic misdirection. Companies might be tempted to overestimate the potential of a market segment, both in terms of size and profit generation capabilities, especially in the short run. This error in judgment could result in inefficient use of company resources and eventually, disappointing financial returns.
It is also crucial to avoid pitfalls such as C. Relying on qualitative responses alone and E. Relying on quantitative data alone. Qualitative data provides depth and context but may lack representativeness, whereas quantitative data offers breadth but may miss nuanced behaviors and attitudes. Achieving a balance between these types of data is key.
Sampling must also be conducted with care, avoiding biases like sampling only certain groups, to ensure data accurately reflects the target population. Including all relevant participants in a study, such as in job and child care research, ensures comprehensive data that can effectively inform market segmentation decisions.