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Consumer markets break behavioral segmentation into variables based on product features or usage rate. Organizational markets break demographic segmentation into variables based in part on __________ and __________.

User Sadashiv
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Final answer:

Organizational markets base demographic segmentation on variables related to geography and demography, such as population characteristics and factors including economic, social, or cultural conditions. These factors influence business strategies and consumer behavior in various market segments.

Step-by-step explanation:

The student's question asks about the variables on which organizational markets base their demographic segmentation. These variables often include factors related to geography and demography of the human population such as population size, distribution, age, sex, marital status, education, and economic indicators. For example, companies may use geographic differences such as being landlocked or having coastlines to determine market segments since these features can influence commercial opportunities and business strategies. Demographic differences like age distribution can affect market demand for certain products or influence labor market dynamics. Additionally, characteristics such as industrial structure and social institutions can also influence organizational marketing strategies, as they dictate the way industries operate and how businesses interact within them.

It is also important to consider economic, social, or cultural factors, which can significantly shape consumer behavior and preferences. These factors may relate to a country's wealth distribution, cultural norms, or social structures, all of which can impact marketing strategies and consumer relations. Companies thus undertake segmentation to better understand and respond to the nuances of different market segments more effectively.

User Scott Marlowe
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