A lumber firm sells wood products to both the construction industry and the retail industry. The company has the same sales representatives for both industries and often offers discounts for buying in bulk. The lumber firm sells different types of wood for each industry based on its unique characteristics. For instance, wood used for large construction projects must have a higher grade and quality than wood used for home improvement projects. Which type of segmentation is the lumber firm most likely to use?
A) Type of organization
B) Geographic
C) Benefit
D) Psychographic
E) Customer size

Question

Quizplus · Accepted Answer

The lumber firm is most likely using type of organization segmentation by selling different types of wood to the construction industry and the retail industry. This type of segmentation takes into account the characteristics of the organization the product is being sold to, rather than individual consumer characteristics. Additionally, the fact that the company offers discounts for bulk purchases suggests that they are likely targeting larger organizations, further supporting the use of type of organization segmentation.

A Lumber Firm Sells Wood Products to Both the Construction