Question detail
RiverRun Catering serves tourists while improving quality control; the case evidence includes average order value of ?3,627, sales of 117 units, and a 22% 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 customer retention, employees 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 employees.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use age, location, gender, income to judge customer retention, employees impact, and the business objective in Types and use of segmentation.
Explanation
This is the best-supported choice because Use age, location, gender, income to judge customer retention, employees impact, and the business objective in Types and use of segmentation. The case evidence gives ?5,127, 117 units, and 22%, 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 employees, 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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