Question

Which of the following explains why it is dangerous to use​ macro-level statistics as a basis for segmentation in developing​ markets?

A.Data can be skewed.
B.Inequality will not be revealed.
C.Qualitative research is more relevant.
D.Income and population have no significance to segmentation.
E.Averages will not reveal the presence of​ higher-income segments.

Answer 1

Using macro-level statistics for segmentation in developing markets can be dangerous due to skewed data, the inability to reveal higher-income segments, and the relevance of qualitative research.

Step-by-step explanation:

Using macro-level statistics as a basis for segmentation in developing markets can be dangerous due to several reasons:

1. Data can be skewed: Macro-level statistics may not accurately represent the diversity and heterogeneity within a market. Averages and aggregates can hide variations and outliers, leading to inaccurate segmentation.
2. Averages will not reveal the presence of higher-income segments: Macro-level statistics focus on overall averages, which may not reveal the existence of specific higher-income segments within a market. This can result in missed opportunities for targeting these segments.
3. Qualitative research is more relevant: Macro-level statistics alone may not provide insights into the cultural, social, and behavioral aspects of a market. Qualitative research can complement statistical data in understanding consumer preferences and needs.