Final answer:
The statement is true; differentiating between customer segments requires a firm to identify and leverage product or service attributes valued by each segment, which includes physical aspects, location, intangible aspects, and consumer perceptions.
Step-by-step explanation:
The assertion that a firm must create barriers by identifying product or service attributes that different customer segments value differently in order to differentiate between various customer segments is true. Product differentiation is the process by which a firm makes its products distinct from those of competitors. Differentiation can occur through several aspects: physical aspects of the product, location from which it sells the product, intangible aspects of the product, and perceptions of the product.
Physical aspects might include design, features, or functionality that appeal to certain segments. Location can also provide differentiation, whether by geo-targeting or by providing convenience to specific demographics. Additionally, intangible aspects, such as brand reputation, service quality, customer satisfaction guarantees, or promotional offers, can significantly influence consumer choice. Product perceptions shaped by advertising and individuals' past experiences create brand loyalty and are part of product differentiation strategies.
Understanding and leveraging the unique attributes that different segments value ensure that a firm successfully tailors its offerings to meet specific needs, leading to a competitive advantage. Barriers are essentially the unique characteristics of the product that make it difficult for other competitors to offer the same value, thus helping to maintain a distinct market segment.