Dividing a Market into Groups Based on Consumers' Knowledge, Attitude

question 35

Multiple Choice

Dividing a market into groups based on consumers' knowledge, attitude, use, or response to a product is called:

• A) Market segmentation
• B) Psychographic segmentation
• C) Market bifurcation
• D) Behavioral segmentation

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Definitions:

Budget Constraint

The limitations on the consumption bundles that a consumer can afford given their income and the prices of goods.

Consumption Possibilities

The set of all consumption bundles that can be consumed given a consumer’s income and prevailing prices.

Budget Line

A graphical representation of all possible combinations of two goods that an individual can afford given their income and the prices of the goods.

Giffin Good

A type of good for which demand increases as its price increases, contrary to the typical law of demand.