Which type of segmentation is based on what the product will do rather than on consumer characteristics?

• A. Psychographic segmentation
• B. Demographic segmentation
• C. Benefit segmentation
• D. Geographic segmentation

Answer: (C)

Verified step by step guidance

1. Understand the concept of market segmentation, which is the process of dividing a broad consumer or business market into sub-groups based on shared characteristics.
2. Review the common types of segmentation: Demographic (age, gender, income), Geographic (location), Psychographic (lifestyle, personality), and Benefit segmentation (based on the specific benefits or value consumers seek from a product).
3. Focus on the key phrase in the question: segmentation based on what the product will do, which refers to the benefits or value the consumer expects from the product rather than who the consumer is.
4. Recognize that Benefit segmentation groups consumers according to the different benefits they seek from the same product, making it distinct from demographic, geographic, or psychographic segmentation.
5. Conclude that the correct type of segmentation described is Benefit segmentation, as it directly relates to the product's function or the benefits it provides to consumers.