Horch is the biggest manufacturer of consumer goods in Germany.The company segments its business customers into new and existing customer groups based on the stage of relationship between the company and the customer.This helps the company develop different strategies for newly acquired customers and existing customers,who are interested in making repeat purchases.Which of the following segmentation approaches is being used by Horch in the above scenario?

Question

Quizplus · Accepted Answer

Horch is segmenting its business customers based on the stage of relationship between the company and the customer, which refers to the purchase behavior of the customers. This is an example of segmentation by purchase categories, as the company is grouping customers based on their likelihood to make repeat purchases rather than their demographic characteristics or end-use applications.

Horch Is the Biggest Manufacturer of Consumer Goods in Germany