Paul Is Considering Psychographics as a Way to Segment the Market

question 42

Multiple Choice

Paul is considering psychographics as a way to segment the market for his small travel agency.This approach to segmentation offers him an advantage because

• A) it is based on underlying reasons why people make choices.
• B) it is easier to use than demographics.
• C) the travel business doesn't respond well to other approaches to segmentation.
• D) psychographics is the preferred method for service businesses.
• E) psychographic segmentation is the least expensive method.

---

Definitions:

Acting as Agent

Operating on behalf of another person or entity with the authority to make decisions or perform actions.

Act of Ratification

The official approval or confirmation of an act or agreement, making it valid and legally binding.

Agreement Effective

The point in time when an agreement becomes legally binding and enforceable.

Negotiated

The process of discussing and arriving at a mutual agreement between parties, each with their own interests and objectives.