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When is customer segmentation useful to an entrepreneur?

Answer and explanation

Correct answer: When different customer groups have different needs

Customer segmentation divides a broad market into groups with meaningful shared characteristics, such as needs, location, age, income, or buying behaviour. It is especially useful when groups differ because products, prices, promotion, and distribution can be adapted to each target group. If all customers are identical, segmentation adds little value. Therefore A is correct.

Related tags

Market-SegmentationCustomer-NeedsEntrepreneurship DevelopmentMsme And Business EntrepreneurshipBusiness StudiesClass 11 Mcq

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