Frequency marketing is a strategy that focuses on usage rate.In market segmentation studies,
A) usage should be the last factor that is considered as a criterion for segmentation, since the entire point of segmentation is to attract consumers who are not yet using your product.
B) some measure of usage by, or sales obtained from, various segments is central to the analysis.
C) usage rate should always be considered in tandem with geographic segmentation factors to understand the "why" consumers behave as they do.
D) usage rate has far more value in consumer market segmentation than in organizational market segmentation.
E) usage rate has far more value in organizational market segmentation than in consumer market segmentation.

Question

Quizplus · Accepted Answer

Frequency marketing is a strategy that focuses on increasing usage rate among existing customers, so some measure of usage by various segments is central to the analysis in market segmentation studies. Option A is incorrect because usage should not be the last factor, as understanding usage patterns of different segments can help identify potential new customers. Option C is not necessarily true for all segmentation studies, and option D and E make incorrect generalizations about the value of usage rate in different types of market segmentation.

Frequency Marketing Is a Strategy That Focuses on Usage Rate