APICS Certified Supply Chain Professional (CSCP) — Question 496

A firm has identified groups of customers based on specific characteristics the customers desire from products and services the firm can provide. Characteristics include lead times, pricing tiers, and service levels. The firm is engaged in which of the following activities?

Answer options

• A. Customer differentiation
• B. Order winner segregation
• C. Market segmentation
• D. Channel definition

Correct answer: C

Explanation

The correct answer is C, as market segmentation involves dividing customers into groups based on shared characteristics. The other options, while related to customer interaction, do not specifically pertain to the process of categorizing clients based on their needs and preferences.