Why does an entrepreneur need to identify the customer segment?
Answer and explanation
Correct answer: To create the right product, service, and message for the right people
Customers can differ in age, income, location, preferences, needs, and buying behaviour. Identifying a segment enables an entrepreneur to select a target group and adapt the product, price, service, promotion, and message to it. Assuming identical needs or ignoring information leads to poor decisions. Therefore, A correctly explains the purpose of segmentation.
Frequently asked questions
What is the correct answer to this question?
To create the right product, service, and message for the right people
Why is this the correct answer?
Customers can differ in age, income, location, preferences, needs, and buying behaviour. Identifying a segment enables an entrepreneur to select a target group and adapt the product, price, service, promotion, and message to it. Assuming identical needs or ignoring information leads to poor decisions. Therefore, A correctly explains the purpose 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.
