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: Understanding the Concept:
The question asks to identify the type of market segmentation based on the given criteria for a target market. Market segmentation is the process of dividing a broad consumer market into sub-groups based on shared characteristics.
Step 2: Detailed Explanation:
Let's analyze the given criteria: "female wage earners in the age group of 25-45 years".


female - This is segmentation by gender.
wage earners - This is segmentation by occupation or income level.
age group of 25-45 years - This is segmentation by age.
Now, let's look at the types of segmentation:


(1) Demographic Segmentation: This involves dividing the market based on statistical characteristics of a population, such as age, gender, income, occupation, education, marital status, and family size. The criteria used by the designer (gender, occupation/income, age) fall squarely into this category.
(2) Geographic Segmentation: This involves dividing the market based on location, such as country, city, or climate.
(3) Psychographic Segmentation: This involves dividing the market based on lifestyle, values, personality, and interests.
(4) Behavioural Segmentation: This involves dividing the market based on consumer behavior, such as purchasing habits, brand loyalty, and product usage.
Step 3: Final Answer:
Since the target market is defined by age, gender, and occupation, the type of segmentation used is Demographic Segmentation.