Customer Relationship Management (CRM) Practice Test 2025 – The All-In-One Guide for Comprehensive Exam Success!

Choosing breed and age of cat owned as a characteristic for market segmentation highlights a focused demographic approach. Market segmentation involves dividing a broader market into subsets of consumers with common needs or characteristics, allowing businesses to tailor their marketing strategies effectively. In this case, pet ownership, specifically regarding cats, reveals insights into consumer preferences and behaviors, enabling targeted marketing efforts for products or services related to pet care.

Focusing on specific attributes such as the breed and age of cats can help businesses understand pet owners' purchasing decisions. For instance, different breeds may have varying dietary needs or common health issues, influencing owners' spending habits on pet supplies, veterinary care, and grooming services. Thus, this characteristic stands out as particularly relevant for businesses targeting pet owners.

In contrast, while favorite color, social media usage, and annual holiday spending represent important data points, they do not directly cater to the specific needs and behaviors of a targeted consumer group like pet ownership does. These characteristics might be more generalized or less predictive of specific consumer actions relating directly to a niche market, such as pet-related products, making them less effective for focused market segmentation in that context.