CLEP Marketing

Category - Consumer Behavior

The disadvantage of ______________ segmentation is that there is an assumption that average incomes and preferences of two areas are similar.
  1. Psychographic
  2. Behavior
  3. Demographic
  4. Geographic
  5. Income
Explanation
Answer: D - The disadvantage of geographic segmentation is that there is an assumption that average incomes and preferences of two districts are similar. Geographic segmentation divides a market based on physical location. However, it has several disadvantages, including the assumption that target customers in two different locations would be matched by purchasing preferences and needs. The disadvantage is that they will also be similar in average incomes, which often reflects their spending on essential or non-essential items.
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