A firm that uses ________ segmentation divides a market into groups based on age, income, or level of education.

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Demographic segmentation divides a market based on characteristics such as age, income, education, gender, etc. This type of segmentation is based on measurable characteristics of the population and is widely used by firms to target their products or services to specific groups. Psychographic segmentation, on the other hand, divides a market based on lifestyle, personality, values, attitudes, etc. Perceived value segmentation is based on the perceived value of a product or service, while econometric segmentation uses statistical models to identify the most profitable customer segments.

A Firm That Uses ________ Segmentation Divides a Market into Groups