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

Behavioral segmentation groups customers by observable actions such as purchase frequency, usage rate, loyalty status, and benefits sought.

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

Value seekers are price-sensitive customers who actively comparison shop and respond strongly to discounts and promotions.

Question 3

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

Accepted Answer

Frequency

Answer

In RFM analysis, F stands for Frequency—how often a customer makes a purchase within a defined period.

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

Firmographic segmentation classifies B2B customers by industry, company size, revenue, and other organizational characteristics to identify value drivers.

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

Economic Value to Customer (EVC) measures the monetary benefit a customer receives from a product, directly informing willingness-to-pay-based segmentation.

(CPP) Certified Pricing Professional Practice Test

(CPP) Certified Pricing Professional Practice Test

CPP Customer Segmentation Techniques 2