Question detail
SolarSprout serves tourists while improving quality control; the case evidence includes average order value of ?2,530, sales of 505 units, and a 31% change in costs or demand. Which option best applies Explain why businesses segment by gender, age, location and income?
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 age, location, gender, income 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 age, location, gender, income to judge capacity utilisation, owners impact, and the business objective in Types and use of segmentation.
Explanation
Choose this response because Use age, location, gender, income to judge capacity utilisation, owners impact, and the business objective in Types and use of segmentation. The case evidence gives ?4,030, 505 units, and 31%, 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 why businesses segment by gender, age, location and income..
Answer by clearly explaining how to explain why businesses segment by gender, age, location and income..
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