A Potential Downside of a Heavy-User-Focused Segmentation Plan Is That

question 26

Multiple Choice

A potential downside of a heavy-user-focused segmentation plan is that: 

• A) there may be a relatively small number of people in the segment. 
• B) heavy users usually require constant encouragement to keep consuming a product. 
• C) heavy users do not differ significantly from infrequent users in terms of their motivations to consume. 
• D) it shifts focus to old consumers who quit.

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Definitions:

Terminal Value

The estimated value of a business or project at the end of a forecast period, often used in discounted cash flow analyses.

Non-normal Cash Flows

Cash flow patterns that do not match standard inflow and outflow models, often irregular in amount and timing.

Initial Costs

The upfront expenditures associated with beginning a project, such as fees, equipment purchases, and setup expenses.

MIRR

Modified Internal Rate of Return; a financial measure that adjusts the IRR to reflect the project's cost of capital and reinvestment rate, providing a more realistic view of the project's profitability.