The grouping of customers into categories based on key characteristics is called:

Question

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Segmentation refers to the process of dividing customers into specific groups or segments based on certain characteristics such as age, gender, behavior, preferences, needs or location, enabling businesses to tailor their marketing efforts and offerings to better meet the needs and wants of each group. A is incorrect because 'itemization' refers to the process of listing or inventorying items, while B refers to the process of identifying or recognizing individual customers, which is not the same as segmentation. D is incorrect because 'sales-force automation' refers to technology that automates the sales process, such as tools for managing leads, contacts, and customer data, and is not directly related to customer segmentation.

The Grouping of Customers into Categories Based on Key Characteristics