Why should an entrepreneur segment customers?
Answer and explanation
Correct answer: Because different groups may have different needs, income, and preferences
Customer segmentation divides a broad market into groups with similar characteristics, such as needs, income, age, or preferences. This helps an entrepreneur design a suitable product, price, and promotion for each target group. Options B, C, and D contradict the purpose of segmentation and targeted marketing.
Frequently asked questions
What is the correct answer to this question?
Because different groups may have different needs, income, and preferences
Why is this the correct answer?
Customer segmentation divides a broad market into groups with similar characteristics, such as needs, income, age, or preferences. This helps an entrepreneur design a suitable product, price, and promotion for each target group. Options B, C, and D contradict the purpose of segmentation and targeted marketing.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
