The factors to use for easily separating customers into market segments are a proxy for the differing _____ of the customers.
A)reservation prices
B)average costs
C)minimum prices
D)marginal costs

Question

Quizplus · Accepted Answer

Proxy factors used for market segmentation are indicators of the varying reservation prices, or the maximum amount a customer is willing to pay for a product or service. Average costs, minimum prices, and marginal costs do not necessarily reflect differences in customers' willingness to pay or value perceptions.

The Factors to Use for Easily Separating Customers into Market