Degree of Usage as a Basis of Segmentation Is Best

question 29

Multiple Choice

Degree of usage as a basis of segmentation is best reflected by:

• A)the VALS principle.
• B)the iceberg principle.
• C)the mirror image rule.
• D)the rule of equity.
• E)the 80-20 rulE.Degree of use relates to the fact that a few consumers may buy a disproportionate amount of many products or brands.Industrial marketers refer to the 80-20 rule, meaning 20 percent of their buyers account for 80 percent of their sales volume.

---

Definitions:

Creditworthiness

An assessment of a borrower's ability to repay debts based on their financial history and current financial status.

Payment History

A record of an individual's or entity's past payments on debts, often used by creditors to evaluate creditworthiness.

Financial Statements

Records that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.

Raw Materials

Basic materials that are used in the production process to manufacture goods, including commodities like metals, oils, and agricultural products.