Question

The identification of distinct groups of consumers whose purchasing behavior differs from others in important ways is known as __________.

Answer 1

Answer: Market segmentation

Explanation: Market segmentation is the activity of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers based on some type of shared characteristics.

The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations.