The Marketer Uses Segmentation Variables to Divide a Market into Segments

question 119

Multiple Choice

The marketer uses segmentation variables to divide a market into segments. All of the following statements are true about segmentation variables except:

• A) The variables should be related to the customer's needs relative to the product being marketed.
• B) The variables must be measurable.
• C) The variables should be based solely on demographic characteristics.
• D) The variables should be related to the customer's behavior relative to the product being marketed.
• E) The variables should be related to the customer's uses of the product being marketed.

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Definitions:

Sales Increase

A rise in the amount of goods or services sold, often measured as a percentage increase over a previous period.

Contribution Format

A method of income statement presentation that stresses the contribution margin, which is sales revenue minus variable costs.

Income Statement

A financial statement that shows a company’s revenues and expenses over a specific period, resulting in net profit or loss.

Net Operating Income

The total profit a company makes from its operations, excluding taxes and interest.