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To Overcome the Limitations of Demographics as a Segmentation Variable

question 27

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To overcome the limitations of demographics as a segmentation variable, researchers turned to geographic segmentation.


Definitions:

Profit Margin

A ratio or percentage that measures the profitability of a business, calculated by dividing net income by revenue.

Investment Center

A segment or area of a business responsible for its own revenues, expenses, and investment in assets, often evaluated on its return on investment.

Authority

The ability or prerogative to issue commands, decide on matters, and compel adherence.

Decisions

The choices made by individuals or organizations among two or more alternatives.

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