What Is Customer Segmentation

question 15

Multiple Choice

What is customer segmentation?

• A)The process of identifying a specific set of characteristics that differentiates one group of consumers from the rest
• B)The process of segregating a specific set of customers
• C)The process of identifying products that differentiate one group of consumers from others
• D)The set of characteristics your consumers have

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Definitions:

Elastic

Describes demand that is sensitive to price changes, where a small change in price results in a significant change in the quantity demanded or supplied.

Dropping Price

A strategy involving the reduction of the price of a product or service with the aim of attracting more customers or selling off surplus stock.

Increased Sales

A rise in the number of products sold or services rendered, leading to higher revenue for a business.

Competitor-Oriented

Strategies or practices focused on understanding and reacting to the actions and market positioning of business competitors.