A meaningful segment is one that:
A. is large enough to offer long-run profits for the firm.
B. has a well-defined geodemographic profile.
C. can be reached and served by direct marketers in an efficient manner.
D. is driven by the desire for instant gratification.
Three important criteria on which to base segmentation strategy decisions are that a
viable segment must be measurable, meaningful, and marketable. A meaningful
segment is one that is large enough to have sufficient sales and growth potential to offer
long-run profits for the firm.
Shanghai is a Chinese restaurant in Manhattan that recently changed its ingredients'
supplier. The owner trusted the previous supplier to deliver authentic and fresh
ingredients on short notice and completely avoided stocking up ingredients. However,
the previous supplier defaulted in terms of quality and provided adulterated ingredients.
Shanghai was concerned about losing its customers if the news of the adulterated
ingredients spread and changed its supplier after a survey of potential suppliers to retain
its credibility. Which of the following statements is true about this scenario?