Market Segmentation Quiz

What is market segmentation?

• The process of splitting a business' target market into different groups

• The process of merging different markets into one

• The process of reducing the number of products

• The process of increasing product prices

Which of the following is an example of demographic segmentation?

• Targeting customers based on their location

• Targeting customers based on their hobbies

• Targeting customers based on their age and gender

• Targeting customers based on their income

What does income segmentation consider?

• The earnings and disposable income of the customers

• The location of the customers

• The age of the customers

• The hobbies of the customers

Which type of segmentation is used to target customers based on where they live?

• Demographic segmentation

• Geographical segmentation

• Lifestyle segmentation

• Income segmentation

What is an example of a product that might use lifestyle segmentation?

• A camera equipment retailer targeting photography enthusiasts

• A budget brand of baked beans

• A high-end luxury car

• A pension plan for people aged over 60

Why is it important for businesses to identify and understand their customers?

• To increase the number of products

• To reduce the number of competitors

• To develop products aimed at certain people and target their marketing

• To increase the number of employees

Which of the following is NOT a basis for market segmentation?

• Gender

• Age

• Lifestyle

• Product price

What type of segmentation might a make-up business use to target females aged 19–35?

• Income segmentation

• Lifestyle segmentation

• Demographic segmentation

• Geographical segmentation

Which segmentation type considers the characteristics of people?

• Geographical segmentation

• Demographic segmentation

• Income segmentation

• Lifestyle segmentation

What is disposable income?

• Money available for spending and saving once taxes have been deducted

• Money used for paying taxes

• Money spent on luxury items

• Money saved for future use