The Classification of Customers on a Continuum Range from Nonuser

question 38

Multiple Choice

The classification of customers on a continuum range from nonuser to heavy user is an example of:

• A)macro level segmentation.
• B)micro level segmentation.
• C)product application segmentation.
• D)"value in use" segmentation
• E)none of the above.

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Definitions:

Consumer's Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually do pay.

Used Cars

Pre-owned vehicles that have had one or more retail owners, sold through various outlets, including franchise and independent car dealers.

First-Degree Price Discrimination

A pricing strategy where a seller charges the maximum price that each individual consumer is willing to pay, leading to maximum possible profit for the seller.

Inverse Demand Function

A mathematical representation that describes the price of a good or service as a function of the quantity demanded, highlighting how prices can adjust based on consumer demand.