Question detail
EcoWash serves online shoppers while training staff; the case evidence includes customer retention of ?4,681, sales of 456 units, and a 40% 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 average order value, local community 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 local community.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use segmentation, target customers to judge average order value, local community impact, and the business objective in Types and use of segmentation.
Explanation
The answer is commercially strongest because Use segmentation, target customers to judge average order value, local community impact, and the business objective in Types and use of segmentation. The case evidence gives ?6,181, 456 units, and 40%, 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 local community, 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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