CPP Customer Segmentation Techniques 2

Question 1

Which segmentation approach divides customers based on their actual purchasing behavior, usage rates, and brand loyalty?

Accepted Answer

Behavioral segmentation

Answer

Psychographic segmentation

Answer

Demographic segmentation

Answer

Geographic segmentation

Question 2

A company identifies a group of customers who are highly price-sensitive and switch brands based on promotions. This best represents which segment type?

Accepted Answer

Value seekers

Answer

Loyalists

Answer

Convenience buyers

Answer

Premium seekers

Question 3

In RFM analysis used for customer segmentation, what does the 'F' stand for?

Accepted Answer

Frequency

Answer

Fidelity

Answer

Funnel

Answer

Financial value

Question 4

Which segmentation method would best help a B2B pricing manager identify which industries derive the most value from their product?

Accepted Answer

Firmographic segmentation

Answer

Psychographic segmentation

Answer

Geodemographic segmentation

Answer

Behavioral cohort analysis

Question 5

A pricing analyst wants to set different prices for customers based on their maximum willingness to pay. Which segmentation basis is most directly relevant?

Accepted Answer

Economic value to customer (EVC)

Answer

Geographic location

Answer

Purchase channel preference

Answer

Brand awareness level

Question 6

What is a primary risk of over-segmenting a market for pricing purposes?

Accepted Answer

Operational complexity that outweighs revenue gains

Answer

Increased price sensitivity across all segments

Answer

Reduced ability to use value-based pricing

Answer

Elimination of premium segment opportunities

Question 7

When using needs-based segmentation, what is the primary variable used to group customers?

Accepted Answer

The specific problem or benefit the customer seeks to address

Answer

Annual household income

Answer

The customer's geographic region

Answer

The customer's lifetime purchase value