Wants, needs, and market segmentation.

Which of the following best describes a 'customer need'?

• Something a customer would like to have but can live without

• Something essential that a customer requires to survive or function

• A product that is on special offer

• A luxury item

Which of the following is an example of a customer want?

• Clean drinking water

• Designer trainers

• Basic shelter

• Sufficient food

What is market segmentation?

• The process of increasing prices

• The process of dividing a market into groups of similar customers

• The process of advertising a product

• The process of reducing costs

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

• Age

• Gender

• Shoe size

• Height in feet

Why do businesses segment their markets?

• To make their products more expensive

• To better meet the needs and wants of different groups of customers

• To reduce the quality of their products

• To avoid competition

Which of the following is an example of demographic segmentation?

• Dividing customers by their hobbies

• Dividing customers by their age

• Dividing customers by the weather in their area

• Dividing customers by the number of pets they own

A business that sells sun cream mainly to people living in coastal areas is using which type of segmentation?

• Demographic

• Geographic

• Behavioural

• Psychographic

Which of the following is a need rather than a want?

• A new mobile phone

• A warm coat in winter

• The latest video game

• A designer handbag

What is the main benefit of market segmentation for a business?

• It allows the business to ignore customer feedback

• It helps the business to target its products and marketing more effectively

• It increases the cost of production

• It reduces the number of customers

Which of the following is an example of psychographic segmentation?

• Dividing customers by their income

• Dividing customers by their lifestyle and values

• Dividing customers by their postcode

• Dividing customers by their age