When Segmenting by Usage Rate, Markets Can Be Segmented into Nonusers

question 77

True/False

When segmenting by usage rate, markets can be segmented into nonusers, ex-users, potential users, first-time users, and regular users of a product.

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Definitions:

Escalator Clause

A section in a contract that provides for price increases if certain, specified conditions occur.

Loss-leader Pricing

A pricing strategy where a product is sold at a loss to attract customers, with the expectation they will make additional purchases of other items at regular prices.

Elastic Demand

Demand for which a given percentage change in price results in an even larger percentage change in quantity demanded.

Odd Pricing

A pricing tactic in which a firm prices products a few cents below the next dollar amount.