When is the degree of segmentation of a market optimal?
a) The degree of segmentation is optimal if it results in as many small segments as possible.
b) The degree of segmentation is optimal if the segmentation costs are as small as possible.
c) The degree of segmentation is optimal if the segmentation costs and the loss of profit from failure to segment are the same.
Answer: c) The degree of segmentation is optimal if the segmentation costs and the loss of profit from failure to segment are the same.