Question

The 80/20 principle holds that 20 percent of all customers generate 80 percent of the demand. Although the percentages usually are not exact, the general idea often holds true. Which consumer market segment is described here

Answer 1

Answer: The consumer market segment that is described is the Usage-Rate Segmentation.

Explanation:

This type of consumer market segment is used to determine how much a buyer/consumer uses the product. This put the consumer into a particular category that is used by companies when deciding on their products.

The consumers/customers are put into categories such as the;

• heavy product users
• light product users
• non-users
• medium product users

Larger companies tend to market towards the heavy product users instead of the other 3 categories.