Market Segmentation and Adding Value

What is market segmentation?

• Dividing consumers into different segments based on their characteristics

• Selling one product to all consumers regardless of their characteristics

• Creating different products for different segments of the market

• Targeting consumers in a specific geographic location

Which of the following is an example of demographic segmentation?

• Segmenting consumers based on their income group

• Segmenting consumers based on their buying preferences

• Segmenting consumers based on their geographic location

• Segmenting consumers based on their behavioral characteristics

What are the benefits of market segmentation?

• Better meeting consumers' needs

• Increasing the product range

• Charging a premium price for the product

• All of the above

What is market mapping used for?

• Identifying gaps in the market

• Segmenting consumers based on their characteristics

• Adding value to the product

• Promoting the product to target consumers

Which of the following is a potential source of competitive advantage?

• Price

• Quality

• Convenience

• All of the above

What is product differentiation?

• Unique features that make a product stand out

• The difference between the price and cost of a product

• Adding value through the transformation process

• Promoting the product through branding

How can businesses add value to their products?

• By adding product features

• By delivering excellent customer service

• By building a strong brand

• All of the above

Which of the following is an example of geographic segmentation?

• Segmenting consumers based on their income group

• Segmenting consumers based on their buying preferences

• Segmenting consumers based on their geographic location

• Segmenting consumers based on their behavioral characteristics

According to Michael Porter, businesses must choose between competing on:

• Price and quality

• Convenience and innovation

• Cost and differentiation

• Brand and customer service

What is the main way in which a business adds value to a product?

• Through the transformation process

• By offering a unique selling point

• By providing excellent customer service

• By building a strong brand