Far East Florists segments markets into groups of nonusers,ex-users,potential users,first-time users,and regular users of its flowers and services.This firm uses usage rate as its segmentation approach.

Question

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The segmentation approach described is based on user status, not usage rate. Usage rate segmentation would categorize customers based on how much they use the product or service, such as light, medium, or heavy users.

Far East Florists Segments Markets into Groups of Nonusers,ex-Users,potential Users,first-Time