A company divides consumers into groups by age, income and family size. Which basis of market segmentation is it using?
Demographic segmentation
Age, income and family size are demographic characteristics. Geographic segmentation uses location, psychographic segmentation uses lifestyle or values, and behavioural segmentation uses customers’ actions or responses to products.
Important Questions from Market Segmentation - Teaching
In consumer markets, for a market segment to be an effective and viable target, the segment should be:
A. Identifiable
B. Reachable
C. Transcending International boundaries
D. Sizeable
Choose the correct answer from the options given below:
Grounds for market segmentation based behaviour are:
(a) Benefit sought
(b) Life style
(c) Purchase occasion
(d) Usage rate
Which of the following option is correct?
Arrange the following steps in the segmentation process in sequential order:
(A) Determine which demographics, life styles and usage behaviour make the segment distinct and actionable
(B) Create a "value proposition" and product-price positioning strategy for each segment
(C) Group customers into segments based on similar needs and benefits sought by them
(D) Determine overall attractiveness of each segment based on some predetermined criteria
(E) Create 'segment story board' to list the attractiveness of each segment's positioning strategy
Choose the correct answer from the options given below:
