A company that uses a four-tier scheme to segment is customers by profitability:
A) Is using usage segmentation
B) Identifies customers who need different sorts of attention
C) Can increase profitability by increasing sales to lower-level customers
D) Cannot use relationship marketing effectively
E) Is accurately described by all of the above

Question

Quizplus · Accepted Answer

The four-tier scheme used by the company is a way to segment customers by their profitability, which means that the company is identifying customers who need different sorts of attention. This allows the company to focus on high-profit customers and also improve the profitability of lower-level ones through targeted efforts. It is not explicitly stated that the company is using usage segmentation or that it cannot use relationship marketing effectively, so options A, C, and D are not the best choices.

A Company That Uses a Four-Tier Scheme to Segment Is