Market Segmentation

What is the primary purpose of market segmentation?

• To reduce product prices

• To divide a broad market into smaller groups

• To increase production rates

• To eliminate competition

What is an example of demographic segmentation?

• Targeting consumers based on their lifestyle choices

• Tailoring products for different age groups

• Offering different menu items in different countries

• Analysing browsing history

Geographic segmentation involves dividing the market based on:

• Consumer behaviour

• Psychological factors

• Geographical boundaries

• Income levels

What is a key characteristic of psychographic segmentation?

• It analyses consumer behaviour

• It considers lifestyle and values

• It relies solely on demographic data

• It focuses on geographic location

Which of the following is NOT a type of market segmentation mentioned in the video?

• Behavioural

• Psychographic

• Emotional

• Demographic

What is the first step in implementing market segmentation?

• Develop marketing strategies

• Conduct market research

• Evaluate market segments

• Identify customer preferences

A benefit of market segmentation is:

• Increased complexity in marketing

• Higher customer satisfaction

• Decreased product variety

• Lower advertising costs

Which type of segmentation does Spotify use to create personalized playlists?

• Demographic

• Psychographic

• Behavioural

• Geographic

What is a potential limitation of market segmentation?

• It simplifies marketing strategies

• It can lead to over-segmentation

• It always results in higher profits

• It guarantees customer loyalty