Answer to Question 1
In micro-segmentation, clusters of consumers that respond in a similar fashion to a company's marketing strategies are identified. Bases of micro-segmentation include demographic and psychographic segmentation, benefit segmentation, usage and user status segmentation, and geographic segmentation. Demographic variables include age, income, and religion. Psychographic variables involve attitudes, opinions, and lifestyles. Benefit segmentation demonstrates that different segments seek different benefits from a product. For example some consumer purchase baking soda to bake with while other consumers purchase baking soda to remove odors from their refrigerator. Usage and user status refers to the difference between heavy users and other users of a product/brand. Geographic segmentation realizes that differences exists between different physical locations.
Answer to Question 2
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