DECADECA Travel and Tourism Practice Exam

Benefit segmentation divides markets based on what criteria?

1. Consumer demographics

2. Responses to price changes

3. Different benefits sought from a product

4. Geographical locations

The correct answer is: Different benefits sought from a product

Benefit segmentation is a marketing strategy that categorizes consumers based on the different advantages or benefits they seek from a product. This method goes beyond basic demographic information or geographic location; it focuses on the specific reasons that motivate consumers to purchase. For instance, in the travel and tourism sector, some travelers may prioritize adventure experiences, while others may seek relaxation or luxury accommodations. By identifying these distinct needs, companies can tailor their offerings and marketing strategies to appeal directly to those specific consumer desires, ultimately enhancing customer satisfaction and loyalty. Demographic segmentation involves categorizing consumers based on factors such as age, income, or education level, which does not directly address the specific benefits a consumer might be looking for in a product or service. Similarly, responses to price changes pertain to how prices affect consumer behavior rather than the benefits they seek. Geographical segmentation focuses on where consumers live, which may influence their preferences but not the specific benefits they desire from a product. Thus, benefit segmentation stands out as the most effective approach for targeting consumer needs directly related to the product's benefits.