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.
Frequently asked questions
What is the correct answer to this question?
When different customer groups have different needs
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
