Which of the following statements about market segment profiles is true?
A) They can be used to calculate a lifetime value for each customer in a segment.
B) They are used to describe differences among people in different market segments.
C) They can only deal with demographic characteristics.
D) They provide marketers with a cost estimate for serving potential customer groups.
E) They cannot be used to describe similarities among potential customers.

Question

Quizplus · Accepted Answer

Market segment profiles are used to describe differences among people in different market segments based on characteristics such as demographics, psychographics, behavior, and needs/wants. They are not limited to demographic characteristics only, and they do not provide a cost estimate for serving potential customer groups. While they do not directly calculate a lifetime value for each customer, they can help identify segments that are likely to have a high lifetime value based on their needs and behavior.

Which of the Following Statements About Market Segment Profiles Is