Question

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?
A. Benefit segmentation
B. Geographic segmentation
C. Market segmentation
D. Usage-rate segmentation

Answer 1

Answer: Option (D). Usage-rate segmentation

Explanation: Usage rate segmentation divides consumers according to how much they use a product, They are categorized into groups of non-users, light users, medium users, and heavy product users, and companies often prioritize to make target one heavy user rather than several light users.