5.1 Identifying and understanding customers

• Match the demographic segmentation factor with its description:

  Age ↔️ Customers grouped by their age, such as children, teenagers, young adults, middle-aged, and seniors

  Income ↔️ Customers grouped by their level of personal or household income, such as low, middle, or high income

  Education ↔️ Customers grouped by their level of educational attainment, such as high school, college, postgraduate, etc.
• Match the behavioral segmentation criteria with its description:

  Usage Rate ↔️ Grouping customers by how frequently they use the product/service (e.g. heavy, medium, light users)

  Loyalty ↔️ Grouping customers by their level of brand loyalty (e.g. loyal, occasional, new customers)

  Purchase Behavior ↔️ Grouping customers by when, where, and how they make purchases (e.g. impulse buyers, discount seekers, online shoppers)
• Steps to maximize customer satisfaction and profitability through effective segmentation:

  1️⃣ Understand the target market

  2️⃣ Develop tailored marketing strategies

  3️⃣ Maximize customer satisfaction

  4️⃣ Increase profitability
• Customers are grouped by age into categories such as children, teenagers, young adults, middle-aged, and seniors
• How do businesses benefit from using demographic factors in their marketing strategies?

  Meet specific customer needs
• Match the behavioral segmentation criteria with their descriptions:

  Usage Rate ↔️ How frequently customers use a product

  Loyalty ↔️ Level of brand commitment

  Purchase Behavior ↔️ When, where, and how customers buy
• Grouping customers by their activities, interests, and opinions is part of psychographic segmentation.


  True
• Customer needs are essential requirements for survival, while customer wants are desires that enhance quality of life
• Match the customer segmentation criteria with their examples:

  Demographic ↔️ Age, gender, income

  Geographic ↔️ Region, urban/rural

  Psychographic ↔️ Lifestyle, personality, values

  Behavioral ↔️ Usage rate, loyalty
• Psychographic criteria in customer segmentation include lifestyle, personality, values, and interests
• How are customers grouped under the demographic factor of 'Age'?

  By their age group
• In behavioral segmentation, customers are grouped by their level of brand loyalty
• Customer needs are essential requirements for survival, while customer wants are desires that enhance quality of life
• Arrange the influences on customer purchasing behavior in a logical order of their impact:

  1️⃣ Cognitive (information processing)

  2️⃣ Emotional (feelings and moods)

  3️⃣ Social (peer pressure)

  4️⃣ Situational (store environment)
• Customer segmentation is the process of dividing a market into distinct groups of customers with different needs, characteristics, or behaviors
• Behavioral segmentation divides customers based on their usage patterns, loyalty, and purchase behaviors
• Psychographic segmentation focuses on customers' lifestyles, personality, values, and interests
• What is a key purpose of demographic segmentation factors?

  Understanding target customers
• Income is a key demographic segmentation factor used to group customers based on their financial status.


  True
• Behavioral segmentation divides customers based on their usage patterns, loyalty, and purchase behaviors
• What is the goal of behavioral segmentation?

  Develop personalized marketing
• Order the steps businesses should take to use psychographic segmentation effectively.

  1️⃣ Identify psychographic criteria

  2️⃣ Group customers by these criteria

  3️⃣ Develop marketing strategies that resonate
• Understanding customer needs and wants helps businesses improve customer satisfaction and gain a competitive edge.


  True
• Effective customer segmentation allows businesses to develop tailored marketing strategies to maximize customer satisfaction and profitability.


  True
• Why is customer segmentation important for businesses?

  Develop targeted marketing
• Customers grouped by 'Marital Status' under demographic segmentation include categories such as single, married, and divorced.

  True
• Psychographic segmentation divides customers based on their lifestyle, personality, values, and interests.


  True
• Customer needs include basic food, shelter, and water.


  True
• Match the customer segmentation criteria with its example:

  Demographic ↔️ Age and income

  Geographic ↔️ Region and urban/rural

  Psychographic ↔️ Lifestyle and values

  Behavioral ↔️ Usage rate and loyalty
• Effective customer segmentation helps businesses understand their target market and develop tailored marketing strategies.


  True
• Understanding behavioral patterns helps businesses develop more personalized marketing campaigns and product offerings.

  True
• Businesses can use demographic factors to develop more effective marketing strategies.


  True
• Order the steps businesses should take to use demographic segmentation effectively.

  1️⃣ Identify demographic factors

  2️⃣ Group customers by these factors

  3️⃣ Develop targeted marketing strategies
• Heavy users of a product are grouped together based on their usage rate in behavioral segmentation.


  True
• Psychographic segmentation divides customers based on their lifestyle, personality, values, and interests
• Why is understanding psychographic factors important for businesses?

  Create emotional brand connections
• What is the difference between customer needs and customer wants?

  Needs are essential, wants enhance life
• What are examples of demographic criteria used in customer segmentation?

  Age, gender, income
• Demographic segmentation factors are characteristics related to the personal attributes of customers
• What is the primary focus of behavioral segmentation?

  Usage patterns and loyalty