Market Segmentation

What is the primary purpose of market segmentation?

• To increase the total market size

• To identify specific groups of customers with similar needs

• To decrease marketing costs

• To create a single marketing strategy for all customers

Which of the following is NOT a criteria for a useful market segment?

• Identifiability

• Measurability

• Exclusivity

• Reachability

A market segment that consists of people who live within a specific distance from a business is primarily based on which factor?

• Demographics

• Geography

• Psychographics

• Behavioral

Which of the following best describes demographics?

• Grouping based on lifestyle choices

• Grouping based on shared behaviors

• Grouping based on age, income, and education

• Grouping based on cultural heritage

Psychographics focuses on which aspect of consumer behavior?

• How much money people make

• The location where people live

• People’s lifestyles, attitudes, and personalities

• The number of customers in a market

Which segment would most likely dine at a fancy restaurant?

• Teenagers who enjoy fast food

• Families with young children

• Adults with higher income levels

• College students living on a budget

What is behavior in the context of market segmentation?

• The income level of customers

• The attitudes and beliefs of customers

• How customers act based on their choices

• The geographic location of customers

Why is it important for a market segment to be measurable?

• To ensure it is large enough

• To identify specific group members

• To track customer preferences and responses

• To prevent overlaps with other segments

What does the term "benefits sought" refer to?

• The financial costs associated with a product

• The specific advantages that customers look for in a product

• The location where a product is sold

• The demographic characteristics of customers

How might market segmentation change over time?

• It remains static and unchanging

• It can adapt to shifting consumer preferences and trends

• It only changes in response to economic downturns

• It is influenced solely by geographic factors