Psychographic Segmentation Is Not an Exact Science

question 120

Multiple Choice

Psychographic segmentation is not an exact science. While it helps to paint an overall picture of the psychological motivations of consumers, those motivations are influenced by countless variables, such as family, occupation, and culture. Select the statement below that gives an accurate description of the effective use of psychographic segmenting.​

• A) ​Psychographic segmenting is most effective when applied to domestic markets because global cultures are so varied.
• B) ​Psychographic segmentation is effective when it helps to match a company's product offering with the types of consumers who use its products.
• C) ​Psychographic segmenting becomes less effective if it links consumer social values with buying behavior.
• D) ​AIO statements are the least popular segmenting tool because they present the consumer with an overwhelming amount of information.
• E) ​Psychographic segmenting is less effective when it is combined with such other segmenting approaches as demographic and geographic approaches.

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Definitions:

Assets

Resources owned by a business or individual that are expected to provide future economic benefits.

Liabilities

Liabilities are financial obligations or debts that an entity owes to external parties, expected to be settled over time through the transfer of economic benefits.

Owner's Equity

The residual interest in the assets of a business after all liabilities are subtracted, representing ownership's claim on assets.

Expenses

Expenses are the outflows or the utilization of assets or incurring of liabilities during a period in the course of generating revenue.