Mercedes-Benz Daimler AG, the Maker of Mercedes-Benz Automobiles, Is Planning to to Launch

Mercedes-Benz
Daimler AG, the maker of Mercedes-Benz automobiles, is planning to launch a new line of downsized luxury vehicles in the United States by 2012. Daimler has experienced a recent drop in global sales attributed to its product mix that focuses on larger luxury automobiles. With increasing fuel prices and stricter U.S. fuel-economy standards coming down the pipeline, Daimler doesn't want to be left behind. Daimler is behind its competition, though. Its German rivals, Audi and BMW, have been relatively successful in the U.S. BMW"s Mini Cooper, demanding as much as $34,000, has already driven away with some of Daimler's potential sales. While Daimler already offers the Smart car in the U.S., the new offerings will not be going after the same consumers.
-Refer to Mercedes-Benz. Daimler plans to introduce the downsized luxury vehicles in major U.S.cities,such as Los Angeles,New York,Miami,Atlanta,Dallas,and Chicago,because market research has shown that these metropolitan areas have the greatest potential with respect to the consumers able to purchase a $30,000+ smaller luxury vehicle. Which type of psychographic segmentation does this represent?

A) geodemographic
B) personality
C) benefit
D) usage-rate
E) demographic