Question

As a rule, most retailers do not try to serve all possible customer types. With one possible exception, retailers seek to segment the total market into smaller, more homogeneous segments. What type of retailer is this possible exception?

1) Discounters
2) Convenience stores
3) Supermarkets
4) High fashion apparel stores
5) Fast-food restaurants

Answer 1

Supermarkets are the type of retailer that usually serves a broad customer base and could be considered an exception to market segmentation strategies.

Step-by-step explanation:

The question focuses on market segmentation strategies used by retailers and seeks to identify the type of retailer that might be an exception to this rule, typically serving a broad customer base. The answer is supermarkets, as they usually offer a wide variety of products aimed at satisfying the needs of a diverse customer base. Unlike other retailers that tend to target specific market segments such as discounters or high fashion apparel stores, supermarkets tend to cater to all demographics, offering everything from basic groceries to more specialized items.

Most retail markets operate under monopolistic competition, where numerous firms compete with differentiated products, exemplified by department stores and shopping malls like the Mall of America. This is in contrast to the more homogeneous product selection expected in a perfectly competitive market. The idea behind monopolistic competition is that firms seek to have a mini-monopoly over their specific style or product offering, even though they operate in a larger competitive market.