Question detail
CraftCrate serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?9,530, sales of 740 units, and a 27% change in costs or demand. Which option best applies Explain how businesses use segmentation to target customers?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Segmentation
Question
- A. Use segmentation, target customers to judge capacity utilisation, owners impact, and the business objective in Types and use of segmentation.
- B. Give only a definition of Segmentation without using the case evidence.
- C. Treat cash flow and profit as identical and ignore the effect on owners.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use segmentation, target customers to judge capacity utilisation, owners impact, and the business objective in Types and use of segmentation.
Explanation
Choose this response because Use segmentation, target customers to judge capacity utilisation, owners impact, and the business objective in Types and use of segmentation. The case evidence gives ?11,030, 740 units, and 27%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse cash flow and profit, miss the owners, or ignore the business objective.
Common mistake
Types and use of segmentation common mistake 1
Giving a vague answer instead of directly addressing: Explain how businesses use segmentation to target customers..
Answer by clearly explaining how to explain how businesses use segmentation to target customers..
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