What does market or customer allocation refer to?

Market or customer allocation specifically refers to the practice where competing companies come to an agreement on how to divide or portion their target markets among themselves. This collaboration can involve establishing territories, customer groups, or specific product categories where each competitor agrees to focus their efforts, effectively limiting competition in those areas. This type of arrangement is generally viewed as anti-competitive and can be subject to legal scrutiny, as it undermines the principles of free market competition.

The other options, while related to market dynamics, do not accurately describe market or customer allocation. The distribution of goods based on customer preference pertains more to strategies for meeting consumer demand rather than how competitors allocate market segments. Identifying market trends and consumer behavior focuses on understanding overall market conditions and consumer choices rather than the actions of companies regarding market share. Lastly, segmenting consumers by demographics relates to identifying distinct consumer groups for targeted marketing, not the collaborative decision-making process among competitors.