Question

Segmenting the market on the basis of population, age, gender, occupation, education and income is known as ______.

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

Hint:

Demographic = Quantifiable personal statistics (age, gender, income, education, occupation).
Psychographic = Lifestyle, personality, values.
Geographic = Location, region, climate.

Answer 1

The Correct Option is B

Concept:
Market segmentation is the strategic business practice of dividing a broad target market into subsets of consumers who share common characteristics, needs, and purchasing habits.

Step 1: Understanding Demographic Segmentation:
Demographic segmentation classifies the consumer market based on observable, quantifiable, and statistical human population characteristics.
Key demographic variables include:
- Age (children, teenagers, young adults, seniors)
- Gender (male, female)
- Income level (low, middle, high)
- Education (primary, secondary, collegiate)
- Occupation (students, professionals, business persons)
- Family size and life cycle stage

Step 2: Distinguishing from Other Forms of Segmentation:
Geographic Segmentation divides the market by physical location, climate, or region (urban, rural, northern, southern).
Psychographic Segmentation divides buyers based on personality traits, lifestyle, values, attitudes, and social class.
Behavioural Segmentation categorizes consumers according to their knowledge of, attitude toward, usage rate, and response to a product (brand loyalty, benefit sought).

Step 3: Evaluating the Options:
The factors listed in the question---population, age, gender, occupation, education, and income---are demographic variables.
Final Answer:
Therefore, the correct answer is (B) Demographic Segmentation.