Degree of usage as a basis of segmentation is best reflected by
A)the VALS principle.
B)the iceberg principle.
C)the mirror image rule.
D)the rule of equity.
E)the 80-20 rule.

Question

Quizplus · Accepted Answer

The 80-20 rule, also known as the Pareto principle, states that 80% of a business's revenue comes from 20% of its customers. This means that a small segment of heavy users can significantly influence a business's success. Therefore, segmenting customers based on their degree of usage, or the amount they consume or purchase, can be a useful basis for businesses to identify and target their most valuable customers.

Degree of Usage as a Basis of Segmentation Is Best