Age Is a Commonly Used Method of Segmentation

question 13

Multiple Choice

Age is a commonly used method of segmentation. Age alone, however, may be dangerous because ________.

• A) grouping older customers into one group is an approach that fails to consider the vast differences in other important variables
• B) chronological age and psychological age are the same
• C) older consumers exhibit very little differences from person to person on things such as income, mobility, and work status
• D) this approach ignores chronological age
• E) this approach presumes irregularity of consumer needs and wants by age

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Definitions:

ABC

Activity-Based Costing (ABC) is a method of assigning indirect costs to products and services based on the activities they require.

Batch Size

The quantity of units produced in a single production run or batch, affecting efficiency and cost.

Complexity

The state or quality of being intricate or complicated, often referring to processes, systems, or issues with many interrelated parts or aspects.

Value-added Activities

Activities that increase the value of goods or services to the consumer, thereby making them more valuable in the eyes of customers.