Definition
The degree of market segmentation is defined as the degree of monopoly power of the producing firm or exporting country. the higher the average unit value (AUV) of the same product sold in the primary market compared to the benchmark market, the greater the degree of monopoly power in that market and therefore higher is the degree of market segmentation, expressed in the following formula:
Pp/Ps = C, p ≠ s (1)
Pp and Ps are respectively the prices the producing country set in the primary market (primary market or market of interest) Mp and the secondary market (benchmark) Ms, C is the market segmentation index (MSI), which measures the degree of segmentation of the producing country in the two markets. The MSI was extrapolated from the Lerner Index of market power in the form L=(P-MC)/P in the case of multiple market segments.
Read more about this topic: Market Segmentation Index
Famous quotes containing the word definition:
“The man who knows governments most completely is he who troubles himself least about a definition which shall give their essence. Enjoying an intimate acquaintance with all their particularities in turn, he would naturally regard an abstract conception in which these were unified as a thing more misleading than enlightening.”
—William James (1842–1910)
“Beauty, like all other qualities presented to human experience, is relative; and the definition of it becomes unmeaning and useless in proportion to its abstractness. To define beauty not in the most abstract, but in the most concrete terms possible, not to find a universal formula for it, but the formula which expresses most adequately this or that special manifestation of it, is the aim of the true student of aesthetics.”
—Walter Pater (1839–1894)
“It’s a rare parent who can see his or her child clearly and objectively. At a school board meeting I attended . . . the only definition of a gifted child on which everyone in the audience could agree was “mine.””
—Jane Adams (20th century)