Question

Your friend is a fashion designer. He/she is planning to launch his/her own fashion business to meet the demands of female wage earners in the age group of 25-45 years. According to you, which type of market segmentation has he/she used to define the target market?

• A. Demographic Segmentation
• B. Geographic Segmentation
• C. Psychographic Segmentation
• D. Behavioural Segmentation

Hint:

Remember the key variables for each segmentation type: - Demographic: Who they are (age, gender, income). - Geographic: Where they are (location). - Psychographic: What they think (lifestyle, values). - Behavioural: How they act (buying habits).

Answer 1

The Correct Option is A

Step 1: Understand the Objective:
The objective is to classify the market segmentation method based on provided target market parameters. Market segmentation is the process of dividing a broad consumer market into distinct subgroups that share common characteristics.

Step 2: Analyze the Criteria:
The specified criteria are "female wage earners in the age group of 25-45 years".


female - Indicates segmentation by gender.

wage earners - Indicates segmentation by occupation or income.

age group of 25-45 years - Indicates segmentation by age.

Now, review the segmentation types:


(1) Demographic Segmentation: Divides the market using statistical population characteristics like age, gender, income, occupation, education, marital status, and family size. The given criteria (gender, occupation/income, age) align directly with this type.

(2) Geographic Segmentation: Divides the market by location (e.g., country, city, climate).

(3) Psychographic Segmentation: Divides the market by lifestyle, values, personality, and interests.

(4) Behavioural Segmentation: Divides the market based on consumer behavior (e.g., purchasing habits, brand loyalty, product usage).

Step 3: Determine the Segmentation Type:
As the target market is defined by age, gender, and occupation, the segmentation method employed is Demographic Segmentation.