STR 581 help A Guide to career/uophelp.com STR 581 help A Guide to career/uophelp.com | Page 19

Rotego Inc., an automobile manufacturer, releases two new models of
cars. The first model is an expensive luxury car targeted at high-income
groups, whereas the second model is an affordable car targeted at low-
income groups. Through the introduction of these two models, Rotego
intends to present itself as a company that caters to people across all
income groups. In this scenario, which of the following types of market
segmentation does Rotego employ?
Behavioral segmentation
Demographic segmentation
Occasion segmentation
Geographic segmentation
15. An advantage of a firm pursuing multiple segment specialization is
that:
it creates the largest potential market for the firm’s products.
it increases the extent to which the firm can engage in mass
customization.
it helps the firm achieve the lowest cost in each segment.
it diversifies the firm’s risk across segments.
16.
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