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      Question

      A washing Machine Company aggregates prospective

      customers who are all interested in a low-cost washing machine and respond positively to mail-out marketing material. This process is referred to as:
      A Diversification Correct Answer Incorrect Answer
      B Divestment Correct Answer Incorrect Answer
      C Market segmentation Correct Answer Incorrect Answer
      D Market augmentation Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      Market segmentation involves aggregating prospective buyers into groups that (1) have common needs, and (2) will respond similarly to a marketing action.

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