One of the Most Common Forms of Segmenting Consumer Markets

question 135

Multiple Choice

One of the most common forms of segmenting consumer markets uses characteristics such as age, income, household size, and/or ethnic group. This is known as ______ segmentation.

• A) geographic
• B) demographic
• C) end-use
• D) psychographic

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Definitions:

Appreciated Capital Gain Property

Property that has increased in value over time, where the capital gain realized from its sale is taxed at a possibly reduced rate depending on the duration of ownership.

Tax-Exempt Status

A designation that allows an organization or entity to be exempt from federal income tax under certain sections of the Internal Revenue Code.

Charitable Contribution

Donations or gifts to charitable organizations, which can be deductible from an individual's taxes.

Itemize

This refers to the process of individually listing tax deductions on one's tax return, rather than taking the standard deduction.