Which of the Following Best Represents an Example of Demographic

question 48

Multiple Choice

Which of the following best represents an example of demographic segmentation?

• A) A recreational equipment company divides its market into groups by region of the country, designing different products for people in different parts of the country.
• B) A car manufacturer offers different types of cars designed to appeal to different age groups and income levels.
• C) An entertainment company divides its market according to the attitudes and interests of its customers, marketing some films to people who enjoy action movies and targeting other movies to people who prefer romantic comedies.
• D) A food company has designed a special line of easy-to-prepare microwavable meals that are low fat and high in fiber to attract people interested in the health benefits of the foods they eat.

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Definitions:

Farmer's Market

A public and recurring assembly of farmers or their representatives selling the food and products they produce directly to consumers.

Implicit Costs

The opportunity costs of using resources that a company already owns, not directly paid for with cash.

Accounting Profit

The total revenue of a business minus the explicit costs, representing the financial gain in accounting terms.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing the additional return over the investor's opportunity cost.