APICS Certified Supply Chain Professional (CSCP) — Question 286

A manufacturer is in the process of segmenting customer markets for its products. What is the most appropriate customer factor to use in identifying the segments?

Answer options

• A. Profit margin from purchases
• B. Distance from the nearest plant
• C. Customer brand image
• D. Cost of goods sold (COGS)

Correct answer: A

Explanation

The correct answer is A, as profit margin from purchases directly relates to customer value and purchasing behavior, making it a key factor for segmentation. The other options, such as distance from the nearest plant and COGS, do not directly reflect customer preferences or profitability, while customer brand image is more about perception than financial metrics.