Which of the following is part of Market Segmentation?

Market segmentation involves dividing a broad target market into subsets of consumers who have common needs and priorities. This process allows businesses to tailor their products and marketing strategies to specific groups rather than addressing the entire market with a one-size-fits-all approach.

Choosing to divide markets based on age and income is a direct representation of market segmentation. By categorizing consumers in this way, businesses can better understand the needs, preferences, and spending behaviors of different demographic groups, enabling them to create more effective marketing strategies and product offerings. For example, a company might develop different advertising campaigns for younger consumers versus older consumers, or create different product lines that cater to various income levels.

The other options, while related to marketing and product development, do not specifically pertain to the process of market segmentation. Consistency in product quality relates to manufacturing and quality control, while understanding consumer behavior involves broader research into how consumers think and act, which is helpful but not exclusively segmentation. Reducing production costs focuses on operational efficiency rather than categorizing consumers. Thus, the option regarding dividing markets based on age and income is the one that distinctly represents market segmentation.