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To determine the usage -rate segmentation, what is divided by how much of the product is used or consumed ?

Question

To determine the usage -rate segmentation, what is divided by how much of the product is used or consumed ?

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Solution

To determine the usage-rate segmentation, the total market or total volume of product used is divided by the amount of product used or consumed by a specific segment. This calculation gives you the usage rate for that segment.

Here are the steps:

  1. Identify the total market or total volume of the product used. This is usually given in units or as a percentage of the total market.

  2. Identify how much of the product is used or consumed by a specific segment. This could be a specific demographic, geographic area, or other identifiable segment.

  3. Divide the amount of product used by the specific segment by the total market or total volume of product used.

  4. The result is the usage rate for that segment. This can be used to identify heavy, medium, and light user segments, which can then be targeted with specific marketing strategies.

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