Author Question: Teenagers spend billions of dollars on stereo equipment and compact discs. They have the ability, ... (Read 60 times)

nmorano1 · **on:** Jul 14, 2018

Teenagers spend billions of dollars on stereo equipment and compact discs. They have the ability, willingness, and authority to purchase such products because of their perceived need. These teenagers are an example of a(n) ____ market.
A) consumer
B) business-to-business
C) producer
D) governmental
E) institutional

Question 2

Define consumer market segmentation and describe the four types of segments.

nanny · **Reply #1 on:** Jul 14, 2018

Answer to Question 1

A

Answer to Question 2

Consumer market segmentation
is the process of dividing your market into groups of people, or segments that are similar to one another and different from everyone else. There are four types of market segmentation: demographic, geographic, psychographic, and behavioral.

Demographic segmentation is the preferred starting point for many marketers because it is how they divide the market, based on measurable characteristics about people such as age, income, ethnicity, and gender.

Geographic segmentation refers to dividing the market based on where the consumers live such as what country, city, state, or county in which they are located. This provides details about population density in a given area.

Psychographic segmentation is generally used to complement other marketing segmentation approaches. Psychographic segmentation divides the market based on consumer attitudes, interests, values, and lifestyles.

Behavioral segmentation refers to dividing the market based on how people behave toward various products.