Question 36

Demographic segmentation is used when a bank sends promos when customers turn 18.

Demographic segmentation focuses on characteristics such as age, gender, income, and education. In this instance, the bank is targeting individuals based on their age, specifically when they reach 18 years old.

A) Demographic

This option is correct because it directly relates to the age of the customers. The bank's decision to send promotions when individuals turn 18 is a clear example of demographic segmentation, as age is a primary demographic factor.

B) Psychographic

Psychographic segmentation involves dividing the market based on lifestyle, values, attitudes, and interests. Since the bank's strategy is based on the age of customers rather than their lifestyle or psychological attributes, this option is incorrect.

C) Geographic

Geographic segmentation divides the market based on location, such as country, region, or city. The bank's focus on sending promotions upon reaching a certain age does not pertain to geographical factors, making this option incorrect.

D) Behavioral

Behavioral segmentation considers consumer behaviors, such as purchasing habits or usage rates. While the bank's promos could be influenced by customer behavior, the specific criterion of age makes this option less relevant. Thus, it is not the correct choice.

Conclusion

Demographic segmentation is the definitive choice here as it directly addresses the age factor that triggers the bank's promotional strategy. Other options fail to capture this focus on age, making them unsuitable in this context. By targeting customers at a specific age, the bank effectively employs demographic segmentation to reach its audience.