Ferrari has segmented their market on the basis of income and lifestyle. Their target market has household income greater than $200,000 and enjoys spectator sports like NASCAR racing. These two segmentation variables are grouped under the broader classifications of:
A) demographics and product awareness.
B) psychographics and customer intentions.
C) geographic and motives.
D) demographics and psychographics.
E) demographics and product usage.

Question

Quizplus · Accepted Answer

The segmentation variables of income and lifestyle fall under the broader classifications of demographics and psychographics. Demographics refer to measurable characteristics of the population such as income, age, and gender. Psychographics, on the other hand, are based on consumers' attitudes, beliefs, values, and lifestyles. In this case, income is a demographic variable, while lifestyle, specifically their interest in spectator sports like NASCAR racing, falls under the psychographic category. Therefore, choice D) demographics and psychographics is the best answer.

Ferrari Has Segmented Their Market on the Basis of Income