What is the main benefit of customer segmentation in entrepreneurship?
Answer and explanation
Correct answer: Making products and promotion according to the needs of different groups
Customer segmentation groups people with related needs, characteristics, or buying behaviour. Understanding these groups helps an enterprise adapt the product, message, channel, and offer more effectively instead of using one unsuitable approach for everyone. Treating all customers alike or lowering quality is not a benefit of segmentation.
Frequently asked questions
What is the correct answer to this question?
Making products and promotion according to the needs of different groups
Why is this the correct answer?
Customer segmentation groups people with related needs, characteristics, or buying behaviour. Understanding these groups helps an enterprise adapt the product, message, channel, and offer more effectively instead of using one unsuitable approach for everyone. Treating all customers alike or lowering quality is not a benefit of segmentation.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
