Association of Chartered Certified Accountants (ACCA) Certification Practice Test

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What is customer departmentation based on?

Types of products
Types of customer or market segment
Types of revenue
Types of geographical locations

The correct answer is: Types of customer or market segment

Customer departmentation is based on the types of customer or market segment. This approach organizes a company’s structure in a way that allows different teams to focus specifically on the needs and preferences of distinct customer groups. By segmenting departments according to customer type, companies can tailor their products, services, and marketing strategies to meet the specific demands of each segment more effectively. This method enhances customer satisfaction and loyalty, as teams become experts in their respective customer segments, leading to more personalized service and a better overall customer experience. This structure is especially beneficial for organizations that serve a diverse customer base with varying needs, as it enables them to respond more nimbly to market changes and customer feedback in specific areas.