One of the Most Common Forms of Segmenting Consumer Markets

question 135

Multiple Choice

One of the most common forms of segmenting consumer markets uses characteristics such as age, income, household size, and/or ethnic group. This is known as ______ segmentation.

• A) geographic
• B) demographic
• C) end-use
• D) psychographic

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Definitions:

Decision Making

The process of selecting the best course of action from several alternatives to achieve a desired goal.

Irrelevant Information

Data or facts that do not influence decision-making processes in a given context, lacking value for the question or decision at hand.

Prospect Theory

A psychological theory that describes how people choose between probabilistic alternatives that involve risk.

Package Shrink

The reduction in the size or quantity of a product in its packaging while maintaining or increasing its price.