What is an example of segmentation by consumer behavior?

• A. Grouping by geographic location.
• B. Grouping by income level.
• C. Grouping by consumer behaviors (e.g., occasion, usage rate); example: frequent buyers as a loyalty segment.
• D. Grouping by age.

Answer: (C)

Segmentation by consumer behavior looks at how people act with a product—when they buy, how often they use it, the benefits they seek, and how loyal they are. An example is grouping customers by their purchasing behavior, such as occasion or usage rate. For instance, frequent buyers form a loyalty segment because their repeated purchasing behavior signals a strong pattern that can be rewarded or nurtured with targeted messaging.

The other options focus on where someone lives, how much money they have, or their age—attributes that describe who the customer is, not how they behave with the product. Those bases are useful for other types of segmentation (geographic, demographic), but they don’t capture buying behavior the way behavioral segmentation does.