Question

A consumer goods company segments its markets on the basis of purchase patterns of their customers. The company groups its customers who regularly buy their product into heavy, moderate, and light users, and nonusers. This segmentation approach is an example of _____.

Answer 1

Answer:

This segmentation approach is an example of Usage Rate Segmentation.

Explanation:

Market Segmentation:

It is a process in which a business or a company divides its market into different segments on the basis of demography, behavior of customers and other factors.

• There are four main types of Market segmentation which are Geography segmentation, demographic segmentation, behavioral segmentation and  psycho-graphic segmentation.
• Segmentation by usage rate include the segmentation of the market on the basis of a product used by the customer. In this question, the market segmentation has on the basis of purchase patterns of their customer into light, moderate, heavy and non-user segments.