Question

Among the segmentation variables related to purchase behavior is consumers' share of wallet. This term refers to the Select one: a. money that a consumer spends with one firm as a share of all the money that the consumer spends in that category O b. total amount of money that a consumer spends as a share of that consumer's yearly expenditures. O c. money that a consumer spends with one firm as a share of that consumer's discretionary income. O d. money that a consumer spends with a representative firm as a share of all the money spent by similar

Answer 1

Answer:

a. money that a consumer spends with one firm as a share of all the money that the consumer spends in that category.

Explanation:

A customer normally shares his spending among different retail outlets. The concept of customer wallet is a measure of spending on one particular brand compared to all spendings in a category.

This will help businesses know how much customers are pending with them in comparism with what they are spending on competitor's goods. Insights can be used to strategize on how to increase customer's share of wallet.

Answer 2

Answer:

The correct answer is letter "A": money that a consumer spends with one firm as a share of all the money that the consumer spends in that category.

Explanation:

Share of wallet refers to the money a consumer spends with the product or service of one company instead of using it with competitors. Some companies' marketing departments focus on retaining those consumers rather than acquiring new wit the purpose of promoting brand loyalty. Some firms even start offering complementary products targeted to their existing consumers.