Is Search Engines distinguish between Combines words in domain names?

[sbsindia]

For example, say someone wanted to combine the word SEO and Ohio for a domain name.Lets call it SEOhio.com
In this criteria someone searching SEO in google, the word "SEO" highlighted and taken into account for search engines Or only the word "Ohio"?

[C.Rebecca]

A clever word play I must say
Firstly domain names are not case-sensitive and SE’s will just see it as "seohio".
-If someone is searching for ‘SEO’, your website won’t open up unless the visitor is searching from Ohio itself.

-If someone is searching for ‘Ohio’, your website won’t open up since its not necessary the visitor searching needs SEO services only.

-If someone is searching for ‘SEO Ohio’, your website might show up provided
you have optimized your titles, descriptions and content well using SEO Ohio and related keywords (assuming you are not going to use this clever word-play everywhere).

Rest, it’s a good domain name, and you should get going with it.