Entrepreneurship & Personal Finance Lesson 28 Quiz

Which of the following best describes segmentation?

• Combining multiple small markets into one large group to lower costs

• Dividing a large market into smaller groups of customers who share similar needs or traits

• Selling the same product to every type of customer at the same price

• Choosing which competitors a business will try to defeat first

Which of the following is an example of demographic segmentation?

• A gym targeting customers who value personal health and self-discipline

• A tutoring center targeting high school students preparing for college entrance exams

• A coffee shop targeting customers who visit in the early morning

• A clothing brand targeting customers who live in cold climates

Which of the following is the strongest example of a well-chosen target market?

• People who need food

• Anyone who likes to shop

• Busy college students who need affordable, fast meals

• Customers between the ages of 5 and 65

(a)   segmentation organizes customers by where they live, including region, climate, city size, or population density.

A ​ (a)   ​ (b)   is the specific group of customers a business chooses to focus on and serve best.