Why Do Retailers Use Composite Segmentation

question 55

Multiple Choice

Why do retailers use composite segmentation?

• A) Benefit segmentation does not identify the customers' needs.
• B) Geographic segmentation creates an unmanageable retail market.
• C) Demographic segmentation identifies customers but not their needs.
• D) Demographic segmentation makes it impossible to attract people who do not fit into the demographic categories used.
• E) Benefit segmentation requires the application of complex statistical forecasting.

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Definitions:

Tickets

Documents or electronic codes that grant the holder the right to enter an event, travel on a vehicle, or participate in an activity.

Economic Profits

Profits exceeding the opportunity costs of all resources used in production, including the cost of capital.

Marginal Analysis

The examination of the benefits and costs of choosing one more or one less unit of a good or service.

Implicit Costs

The opportunity costs of using resources owned by the firm for its own production instead of selling or renting them to others.