Question detail
StyleHub serves premium buyers while launching a product; the case evidence includes labour productivity of ?6,736, sales of 161 units, and a 41% 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 net profit margin, 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 gross and net profit 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 age, location, gender, income to judge net profit margin, managers impact, and the business objective in Types and use of segmentation.
Explanation
This option works because Use age, location, gender, income to judge net profit margin, managers impact, and the business objective in Types and use of segmentation. The case evidence gives ?8,236, 161 units, and 41%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse gross and net profit, 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 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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