Question detail
MetroMove serves commuters while opening a second outlet; the case evidence includes net profit margin of ?11,028, sales of 973 units, and a 19% 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 labour productivity, customers 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 customers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use age, location, gender, income to judge labour productivity, customers impact, and the business objective in Types and use of segmentation.
Explanation
Choose this response because Use age, location, gender, income to judge labour productivity, customers impact, and the business objective in Types and use of segmentation. The case evidence gives ?12,528, 973 units, and 19%, 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 customers, 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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