Toyota uses its Lexus division to sell high-priced luxury cars to high-income consumers,while selling its entry-level models,such as the Toyota Corolla,to lower-income consumers.This is an example of targeting to which type of market segments:

Question

Quizplus · Accepted Answer

Toyota is using socioeconomic segmentation by targeting different income levels with different brands. Lexus is aimed at high-income consumers, while Toyota is aimed at lower-income consumers with its entry-level models like Corolla. Therefore, Toyota is segmenting the market based on socioeconomic factors.

Toyota Uses Its Lexus Division to Sell High-Priced Luxury Cars