Question

It is common for real estate firms to identify submarkets, such as property types or particular sections of a city, in which they can specialize and concentrate their transaction activity. This practice is referred to as:

A. internet marketing
B. open listing
C. discount brokerage
D. market segmentation

Answer 1

D. market segmentation

Step-by-step explanation:

Market segmentation is the process by which consumers are grouped on the basis of some shared characteristics. The grouping helps businesses develop strategies that will effectively meet the needs of the target customer segment.

Consumers share common characteristics like common needs, interest and location. They are expected to respond in a similar way to marketing effort.

When real estate firms identify submarkets, such as property types or particular sections of a city, in which they can specialize and concentrate their transaction activity they are involved in market segmentation.