Topic 2 - Market Segmentation Quiz

What does "market segmentation" mean?

• Dividing the market into smaller groups

• Combining all markets

• Ignoring customer differences

• Selling only one product

Which of the following is a basis for segmenting a market?

• Customer income

• Business profits

• Company structure

• Supplier relationships

What is the purpose of market segmentation?

• To increase product costs

• To meet the needs of specific customer groups

• To avoid marketing

• To hire more staff

Which of these is an example of demographic segmentation?

• Age

• Location

• Brand loyalty

• Buying behavior

What is geographic segmentation based on?

• Customer income

• Customer location

• Customer opinions

• Customer personality

Why do businesses use market segmentation?

• To avoid market research

• To target specific customer needs

• To reduce product quality

• To avoid competition

Which of the following is an example of psychographic segmentation?

• Age

• Lifestyle

• Gender

• Income

How can market segmentation benefit a business?

• It allows targeted marketing

• It increases production costs

• It reduces market share

• It leads to higher taxes

Which segmentation method is based on customer habits?

• Geographic segmentation

• Behavioral segmentation

• Demographic segmentation

• Psychographic segmentation

What is an example of using demographic segmentation in marketing?

• Targeting students with textbooks

• Targeting farmers with tractors

• Targeting all age groups equally

• Ignoring customer income