Questions: When expenses are greater than the potentially increased sales from segmentation, a firm should not attempt to segment its market segment only on the basis of simple demographics like gender consider mass customization discontinue the product in question

The answer is not attempt to segment its market.

When the costs associated with market segmentation exceed the potential revenue gains from increased sales, it is financially prudent for a firm to avoid segmenting its market. This approach helps in maintaining cost efficiency and avoiding unnecessary expenditures.

While segmenting based on simple demographics might reduce costs, it may not be effective enough to justify the segmentation if the expenses still outweigh the benefits. Simple demographic segmentation might not capture the nuances needed to significantly boost sales.

Mass customization can be an expensive and complex strategy to implement. If the expenses are already greater than the potential sales increase from segmentation, mass customization would likely exacerbate the issue rather than solve it.

Discontinuing the product is a drastic measure and should be considered only if the product is consistently underperforming and other strategies have failed. It is not the first course of action when segmentation costs are high.