Australia-based Renewable Energy Ltd. sells a $10 million device that converts manure into energy. One of these devices is capable of generating energy equal to $2 million of natural gas per year. The company believes its target market consists of businesses similar to its first customer, a fertilizer manufacturer that was located in a rural area. If the firm expands to the United States, it most likely will use which of the following strategies to segment its market?
A) behavioral and geographic
B) number of employees and behavioral
C) purchase location and purchase type
D) NAICS code and geographic
E) behavioral and NAICS code

Question

Quizplus · Accepted Answer

The firm is likely to use NAICS code to identify businesses in similar industries (like fertilizer manufacturers) and geographic segmentation to target rural areas where such businesses are typically located.

Australia-Based Renewable Energy Ltd