Question detail
GreenGlow serves health-conscious consumers while cutting delivery times; the case evidence includes cash inflow of ?9,000, sales of 460 units, and a 35% 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, managers 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 fixed and variable costs as identical and ignore the effect on managers.
- 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, managers impact, and the business objective in Types and use of segmentation.
Explanation
This option works because Use segmentation, target customers to judge capacity utilisation, managers impact, and the business objective in Types and use of segmentation. The case evidence gives ?10,500, 460 units, and 35%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse fixed and variable costs, miss the managers, 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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