Treena told the management team that she didn't think the market segment was big enough and the company would lose profits if they decided to target the segment. Which criteria for a "good" market segment is Treena using to make her decision?

Question

Multiple choice question.

operational

substantial

heterogeneous between

homogeneous within

Answer 1

Treena is using the criterion of substantial to make her decision. Substantiality refers to whether the market segment is large enough to be profitable and worth targeting. Since she is concerned that the segment may not be big enough and that it could lead to a loss of profits, she is evaluating the size and profitability of the segment.