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Why should an entrepreneur do customer segmentation?

Answer and explanation

Correct answer: To serve different customers according to their needs

Customer segmentation divides a broad market into groups with relatively similar needs, characteristics, behaviour, or purchasing ability. It helps an entrepreneur tailor product features, pricing, communication, and service to each relevant group instead of using one unsuitable approach for everyone. Segmentation is not for hiding customer numbers or stopping a product. Therefore, option A is correct.

Related tags

Customer-SegmentationTarget-MarketMarketingEntrepreneurship DevelopmentMsme And Business EntrepreneurshipBusiness StudiesClass 11 Mcq

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