Question detail
PeakPods serves local families while changing supplier; the case evidence includes gross profit margin of ?2,770, sales of 500 units, and a 33% 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 internal and external finance 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
The option is correct 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 ?4,270, 500 units, and 33%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse internal and external finance, 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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