Reader's Digest magazine plans to send to millions of people with different medical conditions,such as high blood pressure,or high cholesterol,a booklet filled with articles and prescription-drug ads,all about the very condition each subscriber has.Reader's Digest is applying benefit segmentation which is:
A) developed on the basis of what a product will do for the customer rather than on buyer characteristics
B) used to market to organizations but not to consumers
C) not permitting marketing managers to build consumer profiles
D) simply choosing the most economical and beneficial demographic variable as a segmentation variable,to keep company costs low
E) the strategy of building a competitive advantage over the competition

Question

Quizplus · Accepted Answer

Benefit segmentation is a segmentation approach that involves dividing the market into groups based on the benefits that consumers seek from a product, rather than on demographic or psychographic characteristics. In this case, Reader's Digest is segmenting its market based on the medical conditions that subscribers have, and providing them with information and ads related to their specific conditions. This is an example of benefit segmentation because the company is focusing on what the product (magazine and booklet) will do for the customer (provide information and ads related to their medical condition).

Reader's Digest Magazine Plans to Send to Millions of People