Question

Which of the following represents an example of demographic segmentation?A. A firm producing recreational equipment divides its market into groups by region of the country, designing different products for people in different parts of the country.B. An automobile manufacturer offers different types of cars designed to appeal to different age groups and income levels.C. A motion picture company divides its market according to the attitudes and interests of its customers, marketing some films to people who enjoy action movies and targeting other movies to people who prefer romantic comedies.D. A company that produces food products has designed a special line of easy to prepare microwavable meals that are low in low fat and high in fiber to attract people interested in the health benefits of the foods they eat

Answer 1

Answer: B. An automobile manufacturer offers different types of cars designed to appeal to different age groups and income levels.

Explanation:

Demographic segmentation is a segtegation process of the population depending upon the demands in product consumption and utilization at the market level. The population can be divided on the basis of age, gender, family size and income, ethnicity and education. The producers keeps an eye on the needs and requirement of the products based on the demographic parameters.

B. is the correct option depending upon demographic segmentation of population on the basis of different age groups and income level. The different age group people will like different cars. Also the income level will affect the affordibility of car.