Question detail
CycleNest serves online shoppers while training staff; the case evidence includes customer retention of ?6,321, sales of 346 units, and a 38% 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 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 stakeholders and shareholders 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 age, location, gender, income to judge average order value, local community impact, and the business objective in Types and use of segmentation.
Explanation
This answer fits the scenario because Use age, location, gender, income to judge average order value, local community impact, and the business objective in Types and use of segmentation. The case evidence gives ?7,821, 346 units, and 38%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse stakeholders and shareholders, 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 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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