Question

Rasco Corp. segments its foreign markets based on the income levels of a country's population. In this case, the firm segments its market based on ________.

A) political factors
B) legal factors
C) personality factors
D) economic factors
E) cultural factors

Answer 1

Rasco Corp. uses income levels for market segmentation, which falls under economic factors, as they heavily influence purchasing power and are indicative of the economic conditions in different countries.

Step-by-step explanation:

Rasco Corp. segments its foreign markets based on the income levels of a country's population. In this case, the firm segments its market based on economic factors. Economic factors encompass various determinants including geographical and demographic attributes that affect a country's economic performance and subsequently, impact income levels. These distinctions in the economic conditions largely dictate the purchasing power within different markets, helping businesses like Rasco Corp. to tailor their market segmentation strategies appropriately.