Laguna Steelworks has divided its customer base into two groups-commercial and personal. It utilizes different pricing and promotion models for each group. Which concept best describes the process Laguna used to classify its customer bases?

Question

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Market segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics. In this case, Laguna Steelworks has segmented its market into two groups: commercial and personal, based on the type of customer, which is a classic example of market segmentation.

Laguna Steelworks Has Divided Its Customer Base into Two Groups-Commercial