Question

When defining its market segments, the xyz company identifies groups based on characteristics such as age, gender, income, and education. what type of market segmentation is this?

Answer 1

If they identifies group based on characteristics such as age, income, family size and Socio-economic status the type of marketing they uses is Demographic segmentation. 

This kind of strategy assumes that consumers with similar profiles will have purchasing patterns and similar product preferences. By using this strategy, it will be easy to characterized the consumer's needs and it will be easy to analyse the data being gathered.