A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage of the market. The study indicated that less than 7 percent of all shoppers buy nearly 71 percent of Estelle's products in the United States. This is an example of ________.
A) benefit segmentation
B) segmentation by loyalty status
C) segmentation by usage rate
D) psychographic segmentation
E) occasion segmentation

Question

Quizplus · Accepted Answer

The study conducted by Estelle Cosmetics Company is an example of segmentation by usage rate. The company has identified heavy users who comprise less than 7 percent of all shoppers but make up 71 percent of their sales. This indicates that they can focus their marketing efforts on this specific segment, which is likely to be most profitable for the company. Therefore, segmentation by usage rate is the best choice.

A Recent Study Conducted by Estelle Cosmetics Company Showed That