Market segmentation defines and subdivides a large homogeneous market into segments based on which criteria?

• A. Location, Demographics, Consumer Behavior
• B. Location and Taxes
• C. Geography only
• D. Population Size

Answer: (A)

Market segmentation groups a broad market into smaller, like-minded segments so strategies can be tailored to each group. The common bases include location (where buyers live or operate), demographics (age, income, family size, education), and consumer behavior (purchase patterns, preferences, decision processes). These three together cover where buyers are, who they are, and how they shop, which is why this option is the best fit. The other choices are too narrow or miss key bases, such as relying on taxes, geography alone, or just population size. In practice, you’d slice the market by where people are, who they are, and how they behave to target marketing and product offerings effectively.