What is market segmentation?

• The process of mass marketing to a large audience

• Dividing a market of potential customers into distinct groups

• Targeting only high-income customers

• Offering one-size-fits-all products

Which of the following is NOT a common basis for segmentation?

• Geographic

• Behavioral

• Social Media Preference

• Psychographic

Why do businesses need to segment their markets?

• To serve all customers equally

• Because customers have different needs and preferences

• To reduce marketing costs

• To limit their product range

Which segmentation variable considers factors like income, education, and occupation?

• Geographic

• Demographic

• Behavioral

• Psychographic

What type of segmentation focuses on consumer lifestyle and personality traits?

• Demographic

• Psychographic

• Behavioral

• Geographic

Which of the following is an example of behavioral segmentation?

• Segmenting based on climate and region

• Segmenting based on product usage rate

• Segmenting based on family size

• Segmenting based on education level

A company selling eco-friendly products targets customers who are concerned about the environment. This is an example of which segmentation method?

• Behavioral

• Demographic

• Geographic

• Psychographic

What is the primary goal of market segmentation?

• To lower production costs

• To increase customer satisfaction by addressing specific needs

• To reduce advertising expenses

• To create a single product for all customers

Which of the following is an example of geographic segmentation?

• Targeting urban customers in the U.S.

• Segmenting based on product usage frequency

• Segmenting based on lifestyle choices

• Segmenting based on consumer age groups

What is one of the challenges of psychographic segmentation?

• It is too simple

• It can be removed from actual consumer behavior

• It does not take income into account

• It only applies to luxury products