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It can include current customers and potential customers with an interest in the product."},{"text":"product","correct":false,"explanation":"A product is the good or service being offered, not the customers who may buy it. The correct term is market, meaning the group of potential customers."},{"text":"brand","correct":false,"explanation":"A brand is the name, image or identity associated with a product or business. The group of customers who might buy it is called a market."},{"text":"supplier","correct":false,"explanation":"A supplier provides goods or services to another business, so it is part of the supply chain rather than the customer group. The correct term is market."}]},{"id":"17f2bd3f-ad46-4596-aad7-9160afac0e06","cardType":"basic","points":3,"front":"How do customer needs differ from wants?","back":"

Needs are required or strongly expected.
Wants make one option more attractive.

","mcqOptions":[{"text":"

Needs are required or strongly expected.
Wants make one option more attractive.

","correct":true,"explanation":"Needs are essential or strongly expected features, while wants are preferences that increase a product’s appeal. A business should understand both when designing and marketing an offering."},{"text":"

Needs make one option more attractive.
Wants are required or strongly expected.

","correct":false,"explanation":"This reverses the meanings: needs are essential or strongly expected, while wants are preferences that make one option more attractive. The correct answer distinguishes necessity from preference."},{"text":"

Needs are decided by businesses.
Wants are decided by customers.

","correct":false,"explanation":"Both needs and wants describe customer requirements or preferences, not who decides them. Needs are required or strongly expected, whereas wants make one option more attractive."},{"text":"

Needs relate only to price.
Wants relate only to quality.

","correct":false,"explanation":"Neither concept is limited to one product feature. Needs are required or strongly expected, while wants are preferences that make one option more attractive to a customer."}]},{"id":"8c6cb8b0-a4ad-4fda-9c3d-f143236b9510","cardType":"cloze","points":null,"front":"[ ] divides a market into smaller groups with similar characteristics, needs or buying habits; each group is a [ ].","back":"Market segmentation divides a market into smaller groups with similar characteristics, needs or buying habits; each group is a market segment.","mcqOptions":[{"text":"Market segmentation divides a market into smaller groups with similar characteristics, needs or buying habits; each group is a market segment.","correct":true,"explanation":"Market segmentation divides a broad market into smaller groups sharing characteristics, needs or buying habits. Each individual group created by this process is called a market segment."},{"text":"Market research divides a market into smaller groups with similar characteristics, needs or buying habits; each group is a market segment.","correct":false,"explanation":"Market research gathers information about customers and markets, but it does not specifically name the process of dividing customers into groups. The correct process is market segmentation."},{"text":"Market segmentation divides a market into smaller groups with similar characteristics, needs or buying habits; each group is a target market.","correct":false,"explanation":"A target market is the chosen group a business aims its marketing at, whereas each group created by dividing a market is a market segment. The second term is therefore incorrect."},{"text":"Market targeting divides a market into smaller groups with similar characteristics, needs or buying habits; each group is a customer profile.","correct":false,"explanation":"Targeting selects which customers to focus on, and a customer profile describes typical customers. The dividing process is market segmentation, producing market segments."}]},{"id":"17a3235e-b1d2-4874-a235-cb43490aaa53","cardType":"basic","points":1,"front":"What is the main purpose of market segmentation?","back":"To target customers more effectively.","mcqOptions":[{"text":"To target customers more effectively.","correct":true,"explanation":"Segmentation helps a business identify groups with similar needs and characteristics, allowing products, prices and promotions to be adapted so marketing reaches suitable customers more effectively."},{"text":"To make all customers want the same product.","correct":false,"explanation":"Customers have different needs and preferences, so segmentation does not make them identical. Its purpose is to target customers more effectively by recognising differences between groups."},{"text":"To remove the need for market research.","correct":false,"explanation":"Segmentation normally depends on understanding customer characteristics and buying habits, so it does not replace market research. Its main purpose is to target customers more effectively."},{"text":"To sell products without identifying customers.","correct":false,"explanation":"Segmentation requires identifying customer groups rather than ignoring them. The main purpose is to target customers more effectively with suitable products and promotional messages."}]},{"id":"a3556217-2c92-46f0-8524-2f908d18a048","cardType":"basic","points":3,"front":"What are the five main ways to segment customers?","back":"

Age
Gender
Income
Location
Lifestyle

","mcqOptions":[{"text":"

Age
Gender
Income
Location
Lifestyle

","correct":true,"explanation":"These five characteristics allow customers to be grouped by demographic, geographic and lifestyle differences. Businesses can then adapt products and marketing to suit each chosen segment."},{"text":"

Product
Price
Promotion
Place
People

","correct":false,"explanation":"These are elements associated with marketing mix models, not the five customer characteristics in this topic. The correct categories are age, gender, income, location and lifestyle."},{"text":"

Sales
Costs
Profit
Revenue
Cash flow

","correct":false,"explanation":"These are financial or performance measures rather than ways of grouping customers. The five main segmentation methods are age, gender, income, location and lifestyle."},{"text":"

Production
Recruitment
Finance
Operations
Training

","correct":false,"explanation":"These describe business functions or activities, not customer characteristics. Customers are mainly segmented by age, gender, income, location and lifestyle."}]},{"id":"027cec05-db2e-4b97-b5dc-0c82eaac3b6f","cardType":"cloze","points":null,"front":"[ ] can affect what customers want, how much they can spend, and how they like to be contacted.","back":"Age can affect what customers want, how much they can spend, and how they like to be contacted.","mcqOptions":[{"text":"Age","correct":true,"explanation":"Age can influence preferences, disposable income, communication habits and the types of products customers consider suitable. These differences make it a useful basis for market segmentation."},{"text":"Gender","correct":false,"explanation":"Gender can sometimes influence preferences or buying behaviour, but this sentence specifically describes how life stage affects spending, wants and communication. The correct term is Age."},{"text":"Income","correct":false,"explanation":"Income mainly affects how much customers can spend, but it does not directly describe differences linked to life stage and preferred communication. The correct term is Age."},{"text":"Location","correct":false,"explanation":"Location can affect availability, local preferences and distribution, but the sentence focuses on differences associated with customers’ life stages. The correct term is Age."}]},{"id":"076bb6b7-b508-404c-9ae0-5ce7c0621641","cardType":"basic","points":2,"front":"Why may a toy shop aim products at children but promotions at parents?","back":"Children use the toys, but parents buy them.","mcqOptions":[{"text":"Children use the toys, but parents buy them.","correct":true,"explanation":"Children are the users, while parents are usually the purchasers and decision-makers. A toy shop can therefore target product appeal at children and promotional messages at parents."},{"text":"Children buy the toys, but parents use them.","correct":false,"explanation":"Children generally use the toys, while parents usually make the purchasing decision and pay. The example distinguishes the user from the buyer, so the roles are reversed here."},{"text":"Parents use the toys, but children buy them.","correct":false,"explanation":"The usual distinction is that children use the toys and parents buy them. This option reverses both roles, confusing the product user with the purchaser."},{"text":"Children choose the toys, but parents advertise them.","correct":false,"explanation":"Children may influence which toy is chosen, but the key segmentation point is who uses it and who buys it. The correct distinction is children use toys, but parents buy them."}]},{"id":"06e2bccc-30fa-43f5-9d37-aba10f8dbb88","cardType":"basic","points":1,"front":"What risk should a business avoid when using gender segmentation?","back":"Assuming all customers of one gender want the same thing.","mcqOptions":[{"text":"Assuming all customers of one gender want the same thing.","correct":true,"explanation":"Gender segmentation can lead to stereotyping if a business treats everyone in one gender group as identical. Customers within that group may have very different needs and preferences."},{"text":"Assuming all customers of one gender have different needs.","correct":false,"explanation":"The risk is the opposite: treating customers of one gender as though they all want the same thing. Individuals within any gender group can have varied needs and preferences."},{"text":"Assuming customers of different genders buy at the same time.","correct":false,"explanation":"Timing purchases is not the main danger identified by gender segmentation. The key risk is stereotyping all customers of one gender as wanting the same thing."},{"text":"Assuming customers of one gender cannot buy certain products.","correct":false,"explanation":"Customers may buy products regardless of gender, so excluding them creates an unnecessary restriction. The stated risk is assuming all customers of one gender want the same thing."}]},{"id":"27e89f73-91b8-4a2d-aad3-c8a221864556","cardType":"cloze","points":null,"front":"[ ] groups customers by how much money they earn or can afford to spend.","back":"Income segmentation groups customers by how much money they earn or can afford to spend.","mcqOptions":[{"text":"Income segmentation","correct":true,"explanation":"Income segmentation divides customers according to earnings or spending power, helping a business offer products and prices that different income groups can afford."},{"text":"Age segmentation","correct":false,"explanation":"Age segmentation groups customers by age or life stage, not by earnings. The correct term is income segmentation because it considers how much customers earn or can spend."},{"text":"Lifestyle segmentation","correct":false,"explanation":"Lifestyle segmentation considers customers’ interests, values and activities rather than their financial resources. Income segmentation is the term for grouping customers by earnings or spending power."},{"text":"Location segmentation","correct":false,"explanation":"Location segmentation groups customers according to where they live, work or shop. Income segmentation instead classifies them by earnings and ability to spend."}]},{"id":"24af8ce8-ddf8-476b-8181-41794af0e3fc","cardType":"basic","points":2,"front":"How does income segmentation affect pricing decisions?","back":"Prices should match customers’ willingness and ability to pay.","mcqOptions":[{"text":"Prices should match customers’ willingness and ability to pay.","correct":true,"explanation":"Income groups differ in both spending power and attitudes towards price, so businesses should set prices that their chosen customers can and will pay."},{"text":"Prices should match competitors’ production costs and profit margins.","correct":false,"explanation":"A competitor’s costs do not reveal what the target income group can afford. Prices should match customers’ willingness and ability to pay."},{"text":"Prices should reflect the business’s advertising budget and market share.","correct":false,"explanation":"Advertising expenditure and market share may influence wider strategy, but income segmentation specifically informs pricing through customers’ willingness and ability to pay."},{"text":"Prices should remain the same for every customer and market segment.","correct":false,"explanation":"Using one price approach for every segment ignores differences in income and spending power. Prices should match the target customers’ willingness and ability to pay."}]},{"id":"39e62659-48bc-4772-92a6-56ee6bea92ec","cardType":"cloze","points":null,"front":"[ ], also called [ ], groups customers by where they live, work or shop.","back":"Location segmentation, also called geographic segmentation, groups customers by where they live, work or shop.","mcqOptions":[{"text":"Location segmentation, also called geographic segmentation, groups customers by where they live, work or shop.","correct":true,"explanation":"Location segmentation and geographic segmentation are equivalent terms for dividing a market according to places where customers live, work or shop."},{"text":"Demographic segmentation, also called population segmentation, groups customers by where they live, work or shop.","correct":false,"explanation":"Demographic segmentation classifies people using characteristics such as age or gender, not where they are based. Grouping by where customers live, work or shop is location or geographic segmentation."},{"text":"Lifestyle segmentation, also called psychographic segmentation, groups customers by where they live, work or shop.","correct":false,"explanation":"Lifestyle or psychographic segmentation concerns values, interests and ways of living, rather than place. Customers grouped by where they live, work or shop are segmented geographically."},{"text":"Income segmentation, also called socioeconomic segmentation, groups customers by where they live, work or shop.","correct":false,"explanation":"Income segmentation focuses on earnings or spending power, not customers’ physical locations. Location segmentation, also called geographic segmentation, groups customers by where they live, work or shop."}]},{"id":"24ec7174-be6f-4cc0-a795-7cb387d2bc56","cardType":"cloze","points":null,"front":"[ ] groups customers by how they live, what they value, and how they spend their time.","back":"Lifestyle segmentation groups customers by how they live, what they value, and how they spend their time.","mcqOptions":[{"text":"Lifestyle segmentation","correct":true,"explanation":"Lifestyle segmentation divides customers according to their activities, interests and values, including how they spend their time and the ways they choose to live."},{"text":"Demographic segmentation","correct":false,"explanation":"Demographic segmentation uses measurable population characteristics such as age, gender or occupation. Lifestyle segmentation instead groups customers by their activities, values and ways of living."},{"text":"Income segmentation","correct":false,"explanation":"Income segmentation groups customers by earnings or spending power rather than their values and activities. Lifestyle segmentation focuses on how customers live and spend their time."},{"text":"Location segmentation","correct":false,"explanation":"Location segmentation concerns where customers live, work or shop, rather than their interests and values. Grouping by how people live is lifestyle segmentation."}]},{"id":"8ccdcc91-fdae-4cb9-9c8d-08c640cefbe6","cardType":"cloze","points":null,"front":"[ ] are the specific group a business aims its products, prices, places and promotions towards.","back":"Target customers are the specific group a business aims its products, prices, places and promotions towards.","mcqOptions":[{"text":"Target customers","correct":true,"explanation":"Target customers are the particular people a business chooses to reach by tailoring its product, price, place and promotional decisions to their needs."},{"text":"Business competitors","correct":false,"explanation":"Competitors are other businesses offering rival products, not the people at whom the marketing mix is directed. The intended group is known as target customers."},{"text":"Product suppliers","correct":false,"explanation":"Suppliers provide resources or stock to a business rather than forming the intended audience for its marketing mix. The specific intended group is the target customers."},{"text":"Market researchers","correct":false,"explanation":"Market researchers collect and analyse information about consumers, but they are not necessarily the group being targeted. Target customers are the people the marketing mix aims to reach."}]},{"id":"759ffd68-347e-4aa9-aa07-d946317bd1f8","cardType":"basic","points":2,"front":"Why is choosing a clear target segment especially important for a small business?","back":"Its budget is limited, so it must focus on reachable customers.","mcqOptions":[{"text":"Its budget is limited, so it must focus on reachable customers.","correct":true,"explanation":"A small business cannot usually afford to market to everyone, so selecting a clear, reachable segment helps it use its limited budget efficiently."},{"text":"Its market is always local, so it should target everyone nearby.","correct":false,"explanation":"Small businesses are not necessarily local, and targeting everyone nearby may waste resources. Their limited budgets make it important to focus on a reachable, well-defined customer segment."},{"text":"Its budget is unlimited, so it can promote to every customer.","correct":false,"explanation":"Small businesses usually have fewer financial resources than larger competitors, not unlimited funds. A limited budget means promotion should focus on reachable target customers."},{"text":"Its prices must be lowest, so it should appeal to all customers.","correct":false,"explanation":"Small businesses do not always compete through the lowest prices, and appealing to everyone is costly. Their limited budgets make a focused, reachable target segment more appropriate."}]},{"id":"c64389ec-8ac8-4013-a564-2ef42c0cc417","cardType":"basic","points":3,"front":"Which four marketing mix decisions can segmentation affect?","back":"

Product
Price
Place
Promotion

","mcqOptions":[{"text":"

Product
Price
Place
Promotion

","correct":true,"explanation":"Segmentation can shape what is sold, how much it costs, where it is available and how it is communicated - the four elements of the marketing mix."},{"text":"

People
Process
Place
Promotion

","correct":false,"explanation":"People and process belong to the extended seven-part marketing mix, while this question asks for the traditional four. These are product, price, place and promotion."},{"text":"

Product
Profit
Place
Promotion

","correct":false,"explanation":"Profit is a business outcome rather than one of the four marketing mix decisions. The price element concerns what customers are charged, alongside product, place and promotion."},{"text":"

Product
Price
Packaging
Promotion

","correct":false,"explanation":"Packaging is normally treated as part of the product decision, not a separate element of the traditional four-part mix. Place is the missing element."}]},{"id":"5db6b65d-f9c4-4d6c-9f77-8bf7b42e193d","cardType":"basic","points":2,"front":"How can segmentation affect the product element of the marketing mix?","back":"The product is changed to suit the target segment.","mcqOptions":[{"text":"The product is changed to suit the target segment.","correct":true,"explanation":"Segmentation identifies the preferences and needs of a chosen customer group, allowing the business to adapt product features, design or quality specifically for that group."},{"text":"The product is changed to copy the nearest competitor.","correct":false,"explanation":"Copying a competitor does not necessarily meet the chosen segment’s needs and weakens differentiation. Segmentation should lead to changes that suit the target segment."},{"text":"The product is kept identical for every market segment.","correct":false,"explanation":"Keeping the product identical ignores differences between customer groups, which defeats the purpose of segmentation. The product should be adapted to suit the selected target segment."},{"text":"The product is changed to appeal equally to all customers.","correct":false,"explanation":"Trying to appeal equally to everyone is mass marketing rather than targeting a segment. Segmentation means adapting the product to the needs of the chosen group."}]},{"id":"446fbdf6-0b26-4490-b6ab-9033c783cb17","cardType":"basic","points":2,"front":"How can segmentation affect the place element of the marketing mix?","back":"The business sells where or how the target segment buys.","mcqOptions":[{"text":"The business sells where or how the target segment buys.","correct":true,"explanation":"Segmentation identifies how and where the intended customers prefer to purchase, allowing the business to choose suitable shops, websites or other distribution methods."},{"text":"The business sells where or how its competitors distribute.","correct":false,"explanation":"Copying competitors’ distribution ignores the purchasing habits identified through segmentation. The business should sell where or how its target segment prefers to buy."},{"text":"The business sells where or how the largest market buys.","correct":false,"explanation":"The largest market is not necessarily the chosen segment. Segmentation affects place by matching distribution methods and locations to the buying habits of the target segment."},{"text":"The business sells where or how the owner personally prefers.","correct":false,"explanation":"The owner’s preference does not determine an effective place strategy. Distribution should reflect where and how the target segment buys the product."}]},{"id":"d17d5354-b9ec-4b46-b71a-8aab273c796c","cardType":"basic","points":2,"front":"How can segmentation affect the promotion element of the marketing mix?","back":"Promotion uses channels the target segment is likely to notice.","mcqOptions":[{"text":"Promotion uses channels the target segment is likely to notice.","correct":true,"explanation":"Segmentation reveals the media and communication channels used by the intended customers, so promotion can be placed where the target segment is likely to see it."},{"text":"Promotion uses channels the target segment is unlikely to notice.","correct":false,"explanation":"Using channels the target segment overlooks would make promotion ineffective. Segmentation should direct promotion towards channels those customers are likely to notice."},{"text":"Promotion uses channels that are always the cheapest available.","correct":false,"explanation":"The cheapest channel may not reach the intended audience, making spending ineffective. Promotion should use channels the target segment is likely to notice."},{"text":"Promotion uses channels the business owner prefers most.","correct":false,"explanation":"The owner’s preferred channels may differ from those used by customers. Segmentation improves promotion by identifying channels the target segment is likely to notice."}]},{"id":"e4e2736c-8eed-4c51-b3ce-f29fe4c53806","cardType":"basic","points":2,"front":"Why can segmentation improve customer satisfaction?","back":"Products are closer to what customers want.","mcqOptions":[{"text":"Products are closer to what customers want.","correct":true,"explanation":"Understanding the needs of a particular segment helps a business adapt its products accordingly, making them closer to customers’ expectations and increasing satisfaction."},{"text":"Products are identical for every market segment.","correct":false,"explanation":"Making identical products ignores differences between segments and may reduce satisfaction. Segmentation improves satisfaction because products can be made closer to what customers want."},{"text":"Products are designed around production convenience.","correct":false,"explanation":"Production convenience focuses on the business rather than customer needs. Satisfaction improves when segmentation enables products to match more closely what customers actually want."},{"text":"Products are less responsive to customer preferences.","correct":false,"explanation":"Reduced responsiveness would make products less suitable for customers. Segmentation improves satisfaction by helping the business offer products closer to their preferences."}]},{"id":"1dcd2d48-107b-4f42-afca-f474864b0b0a","cardType":"basic","points":2,"front":"When can segmentation lead to higher profit?","back":"When extra revenue is greater than extra costs.","mcqOptions":[{"text":"When extra revenue is greater than extra costs.","correct":true,"explanation":"Segmentation can increase sales but may also increase research, product and promotion costs. Profit rises only when the additional revenue exceeds those additional costs."},{"text":"When extra costs are greater than extra revenue.","correct":false,"explanation":"This reverses the required relationship: if additional costs exceed additional revenue, profit falls. Segmentation raises profit when extra revenue is greater than extra costs."},{"text":"When extra revenue is equal to extra costs.","correct":false,"explanation":"Equal additional revenue and costs produce no increase in profit because they cancel out. Profit rises only when extra revenue exceeds extra costs."},{"text":"When sales fall while extra costs increase.","correct":false,"explanation":"Falling sales combined with rising costs would reduce profit rather than increase it. Segmentation increases profit when the extra revenue generated exceeds the extra costs."}]},{"id":"661c86e4-0157-4d1f-aba6-19cc5b85ebf7","cardType":"basic","points":2,"front":"Why is a segment being too small a risk?","back":"It may not generate enough sales.","mcqOptions":[{"text":"It may not generate enough sales.","correct":true,"explanation":"A very small segment contains few potential customers, so even a strong market share may not produce enough sales to justify targeting it."},{"text":"It may be too broad to target effectively.","correct":false,"explanation":"Being too broad is the opposite of being too small. A small segment is risky because its limited number of customers may not generate enough sales."},{"text":"It may contain too many customer groups.","correct":false,"explanation":"A segment containing many customer groups would be broad, not small. The risk of a small segment is that it may not generate enough sales."},{"text":"It may create unmanageable mass demand.","correct":false,"explanation":"A small segment has relatively few potential buyers, so excessive demand is not the size-related risk. The concern is that it may not generate enough sales."}]},{"id":"117f8fda-dc25-4b4e-bfb8-46fa95d29521","cardType":"basic","points":2,"front":"Why can focusing too narrowly on one segment be risky?","back":"The business may miss other opportunities.","mcqOptions":[{"text":"The business may miss other opportunities.","correct":true,"explanation":"Concentrating resources on one narrowly defined group can cause a business to overlook profitable customers or markets outside that segment, limiting potential growth."},{"text":"The business may understand customers more clearly.","correct":false,"explanation":"Understanding a chosen group more clearly is a benefit of narrow targeting, not the main risk. The danger is that the business may miss other opportunities."},{"text":"The business may reduce wasted marketing expenditure.","correct":false,"explanation":"Reducing wasted marketing is a potential advantage of focusing on a segment. The risk of an excessively narrow focus is missing opportunities elsewhere."},{"text":"The business may target promotion more effectively.","correct":false,"explanation":"More effective targeting is a benefit of segmentation rather than a risk. Focusing too narrowly becomes dangerous when the business misses other market opportunities."}]}]}],"examCountdown":{"examDate":"2027-05-12","paperLabel":"Paper 1"},"heading":"Market segmentation","title":"Market segmentation Flashcards","topbar":{"backHref":"/gcse/business/ocr/flashcards"},"topicSidebar":"$L37"}]}],"topicId":"9b74dc0c-fc0c-5513-9874-62120441cc36","walled":"$L38"}],"$L39","$L3a"]