GENERAL KNOWLEDGE

Detailed explanation-1: -Psychographic segmentation divides the market on principles such as lifestyle, values, social class, and personality. This type of customer segmentation is significantly more difficult to implement than geographic or demographic segmentation.

Detailed explanation-2: -Segments become more homogeneous as they increase in size. A set of segments may be very clear from a statistical perspective, but they need to be useful from a managerial point of view. Some companies that tried mass customization have scaled back their attempts because it is not cost-effective.

Detailed explanation-3: -Why segment? Small businesses are always looking for lower cost, high impact strategies. By segmenting the mass market into well-defined groups of customers, you focus your resources on creating the best possible value proposition for each segment so you can deliver benefits that meet their specific needs.

Detailed explanation-4: -Market segmentation helps companies minimize risk by figuring out which products are the most likely to earn a share of a target market and the best ways to market and deliver those products to the market.