Which of the following are methods of market segmentation?

• A. Geographic
• B. Demographic
• C. Psychographic
• D. All of the above

Answer: (D)

Market segmentation can be based on different characteristics of customers, and each method looks at a distinct aspect of the market. Geographic segmentation divides the market by location—where people live or work. Demographic segmentation splits the market by characteristics such as age, gender, income, family size, and education. Psychographic segmentation groups people by lifestyle, interests, values, and personality. Because each approach identifies groups with similar needs or responses to products, all of these are valid methods of segmentation. In practice, businesses often combine them to target more precise segments, for example, a brand might tailor its messaging to urban, middle-income, fitness-conscious consumers.