Question

The fact that some customers prefer one stop shopping and may stop buying items from Segment A if Segment B is eliminated is an example of a ______________ factor that should be considered in making the segment elimination decision.

1) Financial
2) Operational
3) Customer-related
4) Strategic

Answer 1

The preference of some customers for one stop shopping, which might change if a segment is eliminated, is a Customer-related factor for segment elimination decisions.The right answer is 2)

Step-by-step explanation:

The fact that some customers prefer one stop shopping and may stop buying items from Segment A if Segment B is eliminated is an example of a Customer-related factor that should be considered in making the segment elimination decision. When businesses analyze their product segments, understanding the customer behavior and preferences is crucial. Eliminating a product segment that contributes to the overall customer experience can lead to a decrease in customer satisfaction and loyalty, potentially impacting sales in other segments as well. As such, the customer-related factors are essential for maintaining a holistic view of the business's relationship with its consumers.