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In developing laundry-soap products for a worldwide market, some companies proceed by the strategy of first ascertaining the preference of each market segment, then seeing which product would, on average, best fit all of the segments.

Which of the following is a questionable assumption made by those adopting the strategy above?


The strategy tries to find one product that best fits all market segments on average. The questionable assumption is that one average-fit product is better than making different products for different market conditions.

(A) With respect to the probable success of this strategy, laundry soap does not differ from most consumer products intended for a broad market.

Wrong. The strategy does not require laundry soap to be similar to most broad-market products.

(B) The companies would not achieve better results by tailoring separate products for the conditions under which laundry is done in individual segments of the market.

Correct. If companies could do better by tailoring products to different segments, then the one-product average-fit strategy would be questionable. So the strategy assumes that tailoring separate products would not produce better results.

(C) Each segment of the market represents a single country, rather than a group of countries.

Wrong. The strategy only depends on identifying market segments. It does not require each segment to be one country.

(D) Within each market segment, there is currently a single market-leading laundry-soap product that is preferred by most consumers over all others.

Wrong. The companies need to know preferences in each segment, but they do not need each segment to have one dominant product.

(E) There are no considerations that tend to support developing a product first and then attempting to influence the preferences of consumers.

Wrong. The strategy does not assume no other strategy has any support. It only assumes its own approach is preferable.

Answer: (B)
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