Question Completion:
Demographic Data on Market Segments
Segment Market Growth Purchase Average
Size Rate Behavior Price
Urban Commuters 20,000 3% 23% $45.00
School Children 35,000 1% 20% $24.00
Outdoor Enthusiasts 14,000 5% 12% $90.00
Luxury Trend Followers 5,000 7% 11% $70.00
University Students 24,000 5% 15% $32.00
Answer:
From looking at the information provided about each segment, the segment which represents the greatest portion of the entire market at close to 36% is:
School Children.
Explanation:
a) Data and Calculations:
Demographic Data on Market Segments
Segment Market Growth Purchase Average Market
Size Rate Behavior Price Size %
Urban Commuters 20,000 3% 23% $45.00 20.4%
School Children 35,000 1% 20% $24.00 35.7%
Outdoor Enthusiasts 14,000 5% 12% $90.00 14.3%
Luxury Trend Followers 5,000 7% 11% $70.00 5.1%
University Students 24,000 5% 15% $32.00 24.5%
Total market size 98,000
b) Market Size in percentage is computed as a ratio of each market segment to the total market size. Companies engage in market segmentation and sizing by dividing a target market into smaller, more defined categories that share similar characteristics such as demographics, interests, needs, or locations. The purpose is to identify the different groups within the target market so that more tailored and valuable goods and services can be provided to meet the customers' sweet spots.
