Home › BBA Marketing › Marketing › Creating Products and Pricing Strategies › Market density refers to which quantity?
Market density refers to which quantity?
AThe share of a market held by the largest single firm
BThe number of brands competing inside one product class
CThe amount of a product bought by a heavy user each year
DThe number of people or businesses within a certain area
Answer & Solution
Correct answer: D. The number of people or businesses within a certain area
1. Market density is one of the variables used in geographic segmentation.
2. It is the number of people or businesses within a certain area.
3. Density matters because a dense area can support outlets that a sparse one cannot.
4. Concentration of firms, brand counts and heavy-user volume are all different measures.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.5 Market Segmentation_
Related questions
Big data and analytics are used to provide consumers with which two things?Big data refers to which of the following?Database marketing is sometimes given which other name?What does the information in a marketing database help managers do?One-to-one marketing means creating what?What are shopbots?How does online technology help sellers rather than buyers?What effect has the internet had on pricing power?