Question

The efforts of global companies to reach low-income consumers in emerging markets highlight the importance of skillful global market segmentation and targeting. Market segmentation represents:
A) targeting prospective customers.
B) finding customers who can respond to advertisement.
C) promoting products and services internationally.
D) identifying customers who can help in promoting products.
E) an effort to identify and categorize customers based on common characteristics.

Answer 1

Answer:

E) an effort to identify and categorize customers based on common characteristics.

Explanation:

Market segmentation refers to a process by which customers are categorized into groups or segments based on common characteristics. The whole idea behind market segmentation is that groups of customers that share similar characteristics will also share similar buying habits. The four major types of market segmentation are:

1. demographic: age, gender, ethnic group, race, family status, income level, educational level, etc.
2. geographic: neighborhood, city, region, country, continent
3. psychographic: interest, attitudes, values, lifestyle
4. behavioral: purchase patterns, usage knowledge, previous purchases, product rating, awareness of the company, etc.