Usage rate segmentation classifies markets into which levels?

• A. Light, medium, and heavy product users
• B. Frequent buyers and infrequent buyers
• C. New users only
• D. Occasional users only

Answer: (A)

Usage rate segmentation looks at how much people actually use a product, dividing the market into light, medium, and heavy users. This matters because different levels of consumption respond differently to marketing actions. Heavy users typically contribute a large share of total sales, so strategies might focus on loyalty, premium offers, or ensuring supply to keep them satisfied. Light users, on the other hand, may need incentives or easier entry points to boost usage, while medium users sit in between and can be guided toward heavier usage with targeted messaging. The other options don’t capture a three-tier classification based on how much product is used: frequent versus infrequent buyers focuses on purchase frequency rather than overall consumption; new users only looks at the adoption stage; occasional users describe a subset rather than the full usage-rate levels.