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    Question

    If a bank segments customers based on expected

    profitability rather than age or income, it is using:
    A Demographic segmentation Correct Answer Incorrect Answer
    B Behavioural segmentation Correct Answer Incorrect Answer
    C Value-based segmentation Correct Answer Incorrect Answer
    D Geographic segmentation Correct Answer Incorrect Answer
    E Undifferentiated targeting Correct Answer Incorrect Answer

    Solution

    Value-based segmentation classifies customers according to profitability or lifetime value contribution. Why others are incorrect: Demographic focuses on age/income; Behavioural focuses on usage patterns; Geographic on location; Undifferentiated ignores segmentation. Banking Example: Classifying customers as platinum, gold, silver based on revenue contribution.

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