Members of a market segment must share some common traits that affect their purchasing decisions.

Question

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Market segmentation is the process of dividing a larger market into smaller groups of consumers with similar needs, characteristics or behaviors. To be classified within a market segment, individuals must share some common traits that affect their purchasing decisions, such as age, income, geographic location, interests, lifestyle, and values. Without these common traits, it would not be possible to differentiate the needs and preferences of consumers, and thus target them with customized marketing strategies.

Members of a Market Segment Must Share Some Common Traits