What is the main benefit of customer segmentation?
Answer and explanation
Correct answer: Suitable products and messages can be made for different customer groups
Customers differ in needs, income, location, preferences, and buying behaviour. Segmentation groups people with relevant similarities, allowing an enterprise to design more suitable products, messages, prices, and channels for each target group. It does not mean ignoring customers, fixing one price forever, or ending market research. Instead, segmentation makes research and targeting more focused.
Frequently asked questions
What is the correct answer to this question?
Suitable products and messages can be made for different customer groups
Why is this the correct answer?
Customers differ in needs, income, location, preferences, and buying behaviour. Segmentation groups people with relevant similarities, allowing an enterprise to design more suitable products, messages, prices, and channels for each target group. It does not mean ignoring customers, fixing one price forever, or ending market research. Instead, segmentation makes research and targeting more focused.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
