The Price Segmentation Model Divides Customers into Four Broad Categories

question 56

Multiple Choice

The price segmentation model divides customers into four broad categories based on the customer's "perceived pain" of paying a high price and the "perceived value" of product differentiation.A customer who is in a "Value Segment" is best characterized by which of the following?

• A)This customer wants the lowest price and will not make trade-offs for value-added product benefits.Getting the lowest price is the priority.
• B)This customer wants both the lowest price possible and the largest combination of value-added product benefits.This person "wants it all" and will search for the best combination.
• C)This customer is less concerned with price and wants to have a high level of product differentiation.
• D)This customer is not overly concerned with price or value-added product benefits, but is mainly concerned with minimizing product search and evaluation.
• E)This customer is highly brand loyal, perceiving value in his/her favorite brand, and will pay any price for that favored brand.

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Definitions:

Tax Deductible

Expenses that can be subtracted from gross income to reduce the amount of income subject to tax.

Deferred Tax Asset

A tax benefit arising from temporary differences between the book value and tax basis of assets and liabilities, which will result in deductible amounts in future periods.

Deferred Tax Liability

A tax obligation that arises from temporary differences between the book value and tax value of assets and liabilities, to be paid in the future.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense over the asset's useful life.