Segmentation should be supported by a benefit-cost analysis that explains the resources used and actions taken. V F. Segments need to be reasonably stable over time in order to create and monetise sustainable competitive advantages. V F. Among other utilities, segmentation allows the company to avoid cannibalisation of its own products. V F. The formation of typologies and segmentation only differ in name, as the results they produce are the same. V F. Segmentation is a bottom-up compositional technique. V F. One of the criteria to be taken into account in the valuation of a segment is the current size of demand and its possible future evolution. V F. Typology formation is a top-down decompositional technique. V F. Demographic segmentation is the most commonly used because it is the easiest to obtain and identify. V F. The intersection of objective and specific criteria gives rise to segmentation criteria such as the benefit sought/expected. V F. The CHAID method of segmentation is based on the AID algorithm method. V F. Segmentation is not useful for marketing campaign planning V F. To identify different market segment we only use two criteria: homogeneity and distinction V F. In selective segments strategy there may be less or no synergy among the segments, but each segment promises to be moneymaker. V F. The main threat of a product specialization strategy is that the product may be replace by an entirely new technology any time. V F. Chi square test, contingency tables and Chaid are segmentation techniques. V F. Typological are descriptive and compositional V F.
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