Question detail
BrightBake serves repeat customers while raising prices; the case evidence includes unit contribution of ?7,725, sales of 590 units, and a 20% 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 gross profit margin, suppliers 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 revenue and profit as identical and ignore the effect on suppliers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use age, location, gender, income to judge gross profit margin, suppliers impact, and the business objective in Types and use of segmentation.
Explanation
The answer is commercially strongest because Use age, location, gender, income to judge gross profit margin, suppliers impact, and the business objective in Types and use of segmentation. The case evidence gives ?9,225, 590 units, and 20%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse revenue and profit, miss the suppliers, 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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