Accounting Multiple Choice Question – 28 June 2024

Alex is the managing director of Lucy  Ltd, a small company specialising in aromatherapy products.

He has been reading about the benefits of market segmentation about both competitive strategy and resource allocation and is looking to apply it to his company.

Adoption of market segmentation by the company would mean that?

Select ONE answer:

1. The company would sell to only one section of the market
2. The market is broken down into several different sections
3. The company sees the aromatherapy market as homogeneous
4. The competitive scope of the company would be narrow

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Notcorrect
2. Correct  –>  Market segmentation means that the market can be broken down into several sections using segmentation bases such as age and gender.
3. Not correct
4. Not correct

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