The process of market segmentation involves:

• A. dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors
• B. increasing the overall supply of goods in the market
• C. eliminating competition by merging firms
• D. setting a single price for all products in the market

Answer: (A)

Verified step by step guidance

1. Understand that market segmentation is a marketing and economic concept used to divide a broad consumer or business market into sub-groups of consumers based on shared characteristics.
2. Identify the key criteria for segmentation, which typically include differences in needs, characteristics, or behaviors among buyers.
3. Recognize that the goal of segmentation is to tailor marketing strategies or products to specific groups, rather than treating the market as homogeneous.
4. Eliminate options that do not relate to dividing the market into groups, such as increasing supply, eliminating competition, or setting a single price for all products.
5. Conclude that the correct definition of market segmentation is dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors.