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Which one of the following is correct while segmenting consumer markets on demographic basis?
Question



Which one of the following is correct while segmenting consumer markets on demographic basis?

A.

Low predictability of consumer choice behaviour and high cost of measurement.

B.

Low predictability of consumer choice behaviour and low cost of measurement.

C.

High predictability of consumer choice behaviour and low cost of measurement.

D.

High predictability of consumer choice behaviour and high cost of measurement.

Correct option is B

Option (B) states that while segmenting consumer markets on a demographic basis, there is low predictability of consumer choice behavior and a low cost of measurement. This implies that consumer behavior within demographic segments is less predictable, and the cost of collecting and measuring demographic data is relatively low.
It is true that consumer behavior can vary within demographic segments, demographic factors can still provide valuable insights into consumer preferences, needs, and behaviors. Demographic segmentation is often used because demographic variables are relatively easy to measure and gather. However, the predictability of consumer choice behavior can depend on other factors, such as psychographics, attitudes, and individual preferences, which may not be captured solely through demographic segmentation.

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