Questions and Answers
What is market segmentation?
The process of dividing a market into distinct groups based on certain characteristics
Why is market segmentation important for companies?
To tailor marketing strategies and offerings to specific segments
What factors can market segmentation be based on?
Demographic, psychographic, and behavioral factors
Which discipline is consumer behaviour considered a sub-discipline of?
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What are some of the disciplines that consumer behaviour blends elements from?
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What does consumer behaviour formally investigate?
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What does consumer behaviour attempt to understand?
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What are some influences on the consumer that consumer behaviour investigates?
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Study Notes
Market Segmentation
- Market segmentation is the process of dividing a larger market into smaller groups of consumers with similar needs or characteristics.
Importance of Market Segmentation
- Market segmentation is important for companies as it helps them to identify and target specific customer groups, increasing the effectiveness of their marketing efforts.
Bases of Market Segmentation
- Market segmentation can be based on factors such as demographics (age, gender, income), geographic location, psychographics (lifestyle, personality), and behavioral variables (usage rate, loyalty).
Consumer Behaviour
Context and Scope
- Consumer behaviour is a sub-discipline of psychology.
- Consumer behaviour blends elements from psychology, sociology, anthropology, and economics.
Focus of Consumer Behaviour
- Consumer behaviour formally investigates the processes involved in the acquisition, use, and disposal of products, services, experiences, and ideas.
Goals of Consumer Behaviour
- Consumer behaviour attempts to understand why individuals or groups make certain purchasing decisions.
Influences on Consumer Behaviour
- Consumer behaviour investigates various influences on the consumer, including personal, social, and cultural factors.
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Description
Test your knowledge on market segmentation with this quiz! Learn what market segmentation is and why it is crucial for companies. Explore the various factors that market segmentation can be based on. Challenge yourself and become an expert in targeting the right audience for business success.
