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To determine the usage -rate segmentation, what is divided by how much of the product is used or consumed ?*2 pointsDiscretionary budgetIncomeCustomersPrice

Question

To determine the usage-rate segmentation, what is divided by how much of the product is used or consumed ?

*2 points

  • Discretionary budget
  • Income
  • Customers
  • Price
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Solution

Understanding the Question

The question is asking about which factor is typically divided by how much of a product is used or consumed to determine the usage-rate segmentation.

Breakdown of Options

  1. Discretionary budget: This refers to the portion of income that is left over after necessary expenses are paid. It may not directly correlate to usage rates of a product since it's about spending capabilities after necessities.

  2. Income: This generally indicates how much a customer earns. Like the discretionary budget, this is not directly divided by product usage; rather, it serves as a broader economic indicator.

  3. Customers: This term denotes the individuals purchasing the product. While understanding customer segments is essential, it does not fit the question of being divided by product consumption.

  4. Price: This is the amount charged for a product. In usage-rate segmentation, determining how much of this price corresponds to the product usage is relevant, as it helps in understanding expenditure related to consumption.

Evaluation of Relevance

From the analysis, "Price" is the most logical choice. In usage-rate segmentation, marketers examine how much of the product is consumed in relation to its price. This relationship helps in understanding consumer behavior and optimizing pricing strategies based on usage.

Final Answer

The correct answer is Price.

This problem has been solved

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