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Explain How Psychographics Can Be Used to Segment Markets

question 31

Essay

Explain how psychographics can be used to segment markets. What useful information is gathered by focusing on this kind of information?


Definitions:

Long Run

A period in economic analysis in which all inputs can be adjusted and no factors are fixed.

Perfect Competition

a market structure characterized by a large number of small firms, producing identical products, with no single firm able to influence the market price.

Price Takers

Firms or individuals in a market who accept the prevailing prices as they cannot influence them due to their small market share in highly competitive markets.

Identical Products

Products that are the same in every aspect, often referred to in economics to describe goods that have no differentiation in the eyes of consumers.

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