Omega, Inc. sells its fitness wrist band for $100. It cost the company $62 to make the product. Customers value the wrist band at $110. One of the reasons why Omega typically charges for its wrist band less than the value placed on it by the customer is because
A. the firm attempts to create value for the consumers by providing them a wide range of products.
B. it is normally impossible to segment a market based on each customer's reservation price.
C. the value creation results in a corresponding reduction in costs of production.
D. the firm frequently modifies its products to compete with the products introduced by other firms.
E. it is highly unlikely that the same good or service will be available to the customers from other firms.
Answer: B. it is normally impossible to segment a market based on each customer's reservation price.