When a telemarketer calls to sell a consumer life insurance, the last questions asked is what category does the person's household income falls into (less than $50,000; $50,000 to $99,999; and $100,000 and over). When the telemarketer asks about household income, this indicates the use of which type of consumer variable the firm is using to segment its market?

Demographic segmentation.

Explanation:

Market Segmentation: Marketers tend to create segments of a whole market to identify the required market they will the push their product into. This helps in cutting marketing costs as the marketer will be focusing on specific segment not on the whole market.

Demographic segmentation: In this segmentation, marketer creates segments regarding age, sex, religion, ethnicity, gender and income.

demographics

Explanation:

Market segmentation refers to dividing a large market into segments or group of potential customers that share similar characteristics between them, e.g. a demographic segmentation focuses on ethnic groups, income, education, family size, gender, age, etc.

When a company segments a market based on income, it is focusing on the socioeconomic variables of the customers to divide them into high, middle and low class. Socioeconomic variables are considered part of demographics, but focusing mostly on income, education and occupation.

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