Question

A cosmetic company manufactures products for skin and hair care for both men and women in the 20- to 50-year-old age group. Which type of market segmentation approach does the company undertake?

a. Benefit segmentation
b. Psychographic segmentation
c. Demographic segmentation
d. Geographic segmentation

Answer 1

c. Demographic segmentation

Step-by-step explanation:

Market segmentation is when a business places its customers in groups based on certain traits the customers possess.

Types of market segmentation:

a. Demographic segmentation - Demographic segmentation is when a business places it's customers in groups based on age, gender, occupation etc

b. Psychographic segmentation - it is when a business places its customers in groups based on personality, opinions, interests etc

c. Benefit segmentation - it is when a business places it's customers in groups based on the benefits the customers derive from the use of the firm's product.

d. Geographic segmentation - it is when a business places its customers in groups based on their geographical location.