Which market segment focuses on understanding and predicting a customer's needs?

The market segment that focuses on understanding and predicting a customer's needs is the behavioral segment. This segment looks at actual consumer behavior, including purchasing habits, brand loyalty, usage rates, and responses to previous marketing efforts. By analyzing behavior, companies can gain insights into how consumers interact with their products and services and what drives their purchasing decisions. This knowledge allows businesses to tailor their offerings and marketing strategies to better meet the specific needs and preferences of their target audience.

In contrast, geographical segmentation divides the market based on location, psychographic segmentation focuses on lifestyle and personality traits, and demographic segmentation categorizes consumers by age, gender, income, education level, etc. While these other segments provide valuable information about different aspects of a customer, they do not specifically center on the motivations and behaviors that reveal customer needs in the same way behavioral segmentation does.