Which of the Following Is NOT True About the Implications

Multiple Choice

Which of the following is NOT true about the implications for cost and revenue and market segmentation?

A) A segmentation strategy is typically associated with lower costs than a standardization strategy.
B) A standardization strategy involves a company producing one basic offering and trying to attain economies of scale by achieving high-volume sales.
C) A segmentation strategy requires that a company customize its product offering to different segment which causes it to sell less of each offering, making it harder to achieve economies of scale.
D) A segmentation strategy requires that a company customize its product offering to different segments and products targeted at segments at the higher-income end of the market may require more functions and features, which can raise the costs of production and delivery.
E) A segmentation strategy can allow a company to capture incremental revenues by customizing its offerings to the needs of different groups of consumers and thus selling more in total.