Which type of departmentalization is based on the primary type of customer served by the organizational unit?

• A. Customer Departmentalization
• B. Product Departmentalization
• C. Process Departmentalization
• D. Geographic Departmentalization

Answer: (A)

Grouping by customer type means creating organizational units around the specific customer segments the company serves, such as hospitals, government agencies, or individual consumers. This setup makes it easier to tailor services, sales approaches, and support to the distinct needs of each customer group, which is exactly what it means to organize by the primary type of customer served.

In contrast, product-based departmentalization groups by what is being sold, process-based by the steps or functions used to produce or deliver, and geographic by location. None of those arrangements centers on the customer type, so they don’t fit the criterion described in the question.