Nalpas Inc., an apparel company, manufactures clothes for men, women, and children. It further divides its core customers on the basis of demographic variables such as income, ethnic background, and family life cycle. In this context, these demographic variables are examples of _____.
A)positioning bases
B)segmentation bases
C)product classes
D)market positions

Question

Quizplus · Accepted Answer

Demographic variables such as income, ethnic background, and family life cycle are commonly used segmentation bases to divide a market into homogeneous groups of customers who have similar needs and characteristics. This helps companies like Nalpas Inc. design and execute targeted marketing strategies to better serve the specific needs of each segment.