A consumer goods company segments its markets on the basis of purchase patterns of their customers. The company groups its consumers who regularly buy their product into heavy, moderate, and light users, and nonusers. What approach is this an example of?
A) segmentation by benefits sought
B) geographic segmentation
C) segmentation by usage rates
D) distributive segmentation

Question

Quizplus · Accepted Answer

This approach is an example of segmentation by usage rates, as the company is dividing its market based on how frequently consumers purchase their products, categorizing them into heavy, moderate, and light users, and nonusers.

A Consumer Goods Company Segments Its Markets on the Basis