What does the term customer segment mean?
Answer and explanation
Correct answer: A group of customers with similar needs or characteristics
A customer segment is a group of people who share similar needs, characteristics, location, interests, or buying behaviour. A business identifies such groups so that it can design suitable products, prices, and messages for them. Machines, empty shops, and markets without demand are not customer groups, so option A is correct.
Frequently asked questions
What is the correct answer to this question?
A group of customers with similar needs or characteristics
Why is this the correct answer?
A customer segment is a group of people who share similar needs, characteristics, location, interests, or buying behaviour. A business identifies such groups so that it can design suitable products, prices, and messages for them. Machines, empty shops, and markets without demand are not customer groups, so option A is correct.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
