Company ABC's segmentation based on gender, age, education, and income is known as what type of factors?

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The correct identification of the segmentation method used by Company ABC hinges on its focus on characteristics that define and categorize individuals within a population. In this case, the factors of gender, age, education, and income fall under demographic factors.

Demographic segmentation involves dividing the market into segments based on statistical characteristics of the population. This type of segmentation is valuable because it allows companies to tailor their marketing efforts to specific groups that share similar traits in regard to consumption patterns, preferences, and needs. For instance, understanding the income level can help a company determine the pricing strategy, while knowledge of age groups aids in crafting messages that resonate with different life stages.

In contrast, geographic factors would involve segmentation based on location, psychographic factors would incorporate lifestyle, values, and personality traits, and behavioral factors would focus on consumer behaviors such as purchasing habits and brand loyalty. The specific nature of gender, age, education, and income distinctly aligns with demographic segmentation, confirming the accuracy of the answer.

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