Why Do Retailers Use Composite Segmentation

question 50

Multiple Choice

Why do retailers use composite segmentation?

• A) Demographic segmentation makes it impossible to attract people who do not fit into the demographic categories used.
• B) Demographic segmentation identifies customers but not their needs.
• C) Benefit segmentation does not identify the customers' needs.
• D) Geographic segmentation creates an unmanageable retail market.
• E) Benefit segmentation requires the application of complex statistical forecasting.

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Definitions:

Differentiation Strategy

A business approach where a company seeks to be unique in its industry along some dimensions valued by customers.

Performance Management

Is the general set of activities carried out by the organization to change (improve) employee performance.

Cost Leadership Strategy

A cost leadership strategy is one that focuses on minimizing the costs as much as possible.

Defender Strategy

A business strategy focusing on defending existing market niches, maintaining stable growth, and protecting market share from competitors.