For which of the following companies would demographic segmentation be the least useful in determining market equilibrium strategies?

• A. A company offering luxury cars
• B. A company providing retirement planning services
• C. A company marketing children's toys
• D. A company selling basic table salt

Answer: (D)

Verified step by step guidance

1. Step 1: Understand what demographic segmentation means. It involves dividing the market based on demographic factors such as age, gender, income, education, and family size. This helps companies target specific groups more effectively.
2. Step 2: Analyze each company in terms of how demographic factors influence their demand. For example, luxury cars are often targeted at higher-income individuals, retirement planning services are aimed at older adults, and children's toys are marketed to families with young children.
3. Step 3: Consider the company selling basic table salt. Since salt is a basic commodity used by almost everyone regardless of age, income, or other demographic factors, demographic segmentation is less useful here.
4. Step 4: Recognize that for products with universal demand and low differentiation, like basic table salt, market strategies rely more on factors like price, distribution, and brand rather than demographic segmentation.
5. Step 5: Conclude that demographic segmentation is least useful for the company selling basic table salt because its demand is broad and not significantly influenced by demographic characteristics.