Which of the following statements is MOST correct about segmenting by usage?
A) It rarely happens because of cost.
B) It involves giving a discount to those who buy small amounts often.
C) It is a strategy to improve purchase frequency.
D) It is an example of benefits desired segmentation.
E) It is an example of behavioural segmentation.

Question

Quizplus · Accepted Answer

Segmenting by usage is a type of behavioral segmentation that groups customers based on their behavior or how they use the product or service. It focuses on frequency of use, amount of product used, and loyalty. Option A is incorrect because cost is not a major factor in segmenting by usage. Option B is incorrect because giving a discount is a tactic used in frequency marketing, but not the main strategy behind usage segmentation. Option C is partially correct, but it is not the complete definition of usage segmentation. Option D is incorrect because benefits desired segmentation refers to segmenting by the benefits that customers seek, not their usage behavior.

Which of the Following Statements Is MOST Correct About Segmenting