Segmenting a Market by Postal Codes Is an Example of Segmentation

question 23

Multiple Choice

Segmenting a market by postal codes is an example of segmentation by

• A) geographics.
• B) demographics.
• C) psychographics.
• D) product-use.
• E) random selection.

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Definitions:

Airline

A company that provides air transport services for traveling passengers and freight.

Herfindahl Index

An economic index that quantifies the concentration of market power within industries by adding up the squared market share percentages of all participants.

Market Shares

The portion of a market controlled by a particular company, measured by sales volume or revenue compared to competitors.

Concentration Ratio

A measure used to evaluate the extent of market control held by the largest firms within an industry.