Question

For effective segmentation of market demand, the criteria one uses to categorize customers into groups must be • easy to check: hard to change • verifiable; at each consumer's discretion • based on preferences; easy to change • consistent across consumers; hard to change

Answer 1

The criteria for market demand segmentation should be consistent and hard to change, aiding monopolistic competitors in their marketing and product strategies.

Step-by-step explanation:

For effective segmentation of market demand, the criteria used to categorize customers into groups must be consistent across consumers; hard to change. This ensures that the segments are meaningful and stable over time, allowing monopolistic competitors to effectively target their marketing efforts and product development. Segments based on difficult-to-change factors are more reliable than those based on easily changing preferences, which can lead to short-lived and less actionable market segmentation.