Which one of the following is NOT a commonly used method for segmenting markets?

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

Answer: (C)

Verified step by step guidance

1. Step 1: Understand what market segmentation means. Market segmentation is the process of dividing a broad consumer or business market into sub-groups of consumers based on some type of shared characteristics.
2. Step 2: Identify the commonly used methods of market segmentation. These typically include demographic segmentation (based on age, gender, income, etc.), geographic segmentation (based on location), and psychographic segmentation (based on lifestyle, values, personality, etc.).
3. Step 3: Recognize that 'Random segmentation' is not a standard or commonly used method because it does not group consumers based on meaningful or relevant characteristics that influence purchasing behavior.
4. Step 4: Compare the options given: demographic, geographic, and psychographic segmentation are all valid and widely used methods, while random segmentation is not.
5. Step 5: Conclude that the method which is NOT commonly used for segmenting markets is 'Random segmentation' because it lacks a systematic basis for dividing the market.