ME11 3.04 Customer Segmentation

What is the primary purpose of customer segmentation?

• To randomly assign customers to groups.

• To identify individual customer preferences.

• To group customers based on shared characteristics.

• To predict future market trends without customer data.

What is another term for the process of customer segmentation?

• Data mining

• Clustering

• Regression analysis

• Predictive modeling

In the scatter plot example, what two variables were used to demonstrate customer segmentation?

• Age and income

• Hobbies and travel frequency
• Marital status and occupation
• Favorite color and pet ownership

Which of the following is an objective of customer segmentation?

• To increase the overall number of customers.

• To segment the customer base into smaller groups.

• To reduce operational costs by eliminating customer support.

• To solely focus on historical sales data.

What types of information are typically used to conduct customer segmentation?

• Only demographic information.

• Only transactional information.

• Demographic and transactional information.

• Social media sentiment only.