Why should an entrepreneur do customer segmentation?
Answer and explanation
Correct answer: To serve different customers according to their needs
Customer segmentation divides a broad market into groups with relatively similar needs, characteristics, behaviour, or purchasing ability. It helps an entrepreneur tailor product features, pricing, communication, and service to each relevant group instead of using one unsuitable approach for everyone. Segmentation is not for hiding customer numbers or stopping a product. Therefore, option A is correct.
Frequently asked questions
What is the correct answer to this question?
To serve different customers according to their needs
Why is this the correct answer?
Customer segmentation divides a broad market into groups with relatively similar needs, characteristics, behaviour, or purchasing ability. It helps an entrepreneur tailor product features, pricing, communication, and service to each relevant group instead of using one unsuitable approach for everyone. Segmentation is not for hiding customer numbers or stopping a product. Therefore, 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.
