Western Governors University (WGU) BUS5000 C201 Business Acumen Practice Exam

The correct answer focuses on psychographic segmentation, which indeed targets consumer markets based on lifestyle. Psychographic segmentation goes beyond simple demographic factors like age or income, delving into the interests, values, attitudes, and lifestyles of individuals. This approach recognizes that consumer choices are heavily influenced by their way of life and personal beliefs, allowing businesses to tailor their marketing strategies to resonate with specific target markets.

For example, a company selling outdoor gear might use psychographic segmentation to identify consumers who lead an active and adventurous lifestyle, creating marketing messages that appeal directly to their passions and pursuits. This method helps in crafting more personalized marketing strategies that align with consumers' self-identities and lifestyle choices.

On the other hand, demographic segmentation focuses on statistical characteristics such as age, gender, and income, behavioral segmentation looks at consumer behaviors and buying patterns, and geographic segmentation locates consumers based on their physical location. While all these segmentation methods have their merits, psychographic segmentation is uniquely suited to understanding the lifestyle dimensions of consumer behavior.