Revolve Inc., a car manufacturing company, launched a new car in the market. It promoted the car as a high-price, high-quality, and high-performance vehicle. The car was aimed at high-income customers. The tagline read, "Suite on Wheels" emphasizing the luxury and comfort provided by the car while travelling. Despite all the promotions, the car did not attract the kind of customers the company had hoped to attract. Therefore, to revive interest in the car, Revolve started offering the vehicle at a lower price, aiming it at the middle-income segment. Revolve came up with a new tagline: "A jet at a cab's price."
-The car was initially targeted at customers in the high-income bracket.This kind of segmentation is called:
A)geographic segmentation.
B)behavioural segmentation.
C)demographic segmentation.
D)loyalty segmentation.
E)psychographic segmentation.

Question

Quizplus · Accepted Answer

Demographic segmentation is the process of dividing a larger market into smaller groups based on demographic factors such as age, gender, income, education, occupation, family size, etc. In this case, Revolve targeted customers based on their income, which is a demographic factor. Initially, they targeted high-income customers, but later they shifted their focus to the middle-income segment. Therefore, the kind of segmentation used here is demographic segmentation.