Discuss the circumstances under which price segmentation is most ...

[brutforce]

Discuss the circumstances under which price segmentation is most effective.

Question 2

What might be the problem with only taking the customer's perspective?
 A) Taking a customer perspective involves a lot of costs and resources.
  B) Customers often take a generic analysis of the organization.
  C) The information is more constructive than descriptive.
  D) Customers do not see behind the scenes to understand the firm's characteristics.
  E) Adopting a customer perspective doesn't usually translate into insightful information.

[essyface1]

Answer to Question 1

Criteria for effective price segmentation include: (1 ) Different groups of consumers must have different responses to price; (2 ) the different segments must be identifiable, and a mechanism must exist to price them differently; (3 ) individuals in one segment who have paid a low price should not have the opportunity to pass their savings on to other segments; (4 ) the segment should be large enough to be profitable; (5 ) the cost of running the segmentation strategy should not exceed the incremental revenues obtained; and (6 ) the customers should not be confused by the use of different prices.

Answer to Question 2

D