Target Market and Customer Segmentation

What does the term "target market" refer to in business?

• The group of people who work for a company

• The specific group of customers a business aims to sell its products or services to

• The location where a business is based

• The competitors of a business

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

• Age

• Shoe size

• Income

• Lifestyle

Why is customer segmentation important for businesses?

• It helps businesses pay less tax

• It allows businesses to tailor their marketing and products to specific groups

• It increases the number of employees

• It reduces the need for advertising

Which of the following is an example of demographic segmentation?

• Grouping customers by their hobbies

• Grouping customers by their age and gender

• Grouping customers by the weather in their area

• Grouping customers by the time they shop

A business selling surfboards would most likely target which market segment?

• People living in landlocked cities

• People living near the coast

• People who dislike water

• People who prefer winter sports

What is psychographic segmentation based on?

• Physical location

• Personality, values, and lifestyle

• Age and gender

• Income level

Which of the following is a benefit of identifying a target market?

• Wasting resources on uninterested customers

• Making marketing more efficient and effective

• Increasing the price of products

• Reducing product quality

If a company segments its customers by how often they purchase, what type of segmentation is this?

• Demographic

• Behavioural

• Geographic

• Psychographic

Which of the following is an example of geographic segmentation?

• Grouping customers by their favourite colour

• Grouping customers by their location, such as city or region

• Grouping customers by their age

• Grouping customers by their income

A business wants to target customers who are environmentally conscious. Which type of segmentation is this?

• Demographic

• Psychographic

• Geographic

• Behavioural