Charles Schwab is a consumer financial services company and wants to segment the market to better serve its customers and prospective customers. This market could be segmented on the basis of differences in income, education and age, as well as differences in amount invested, frequency of transactions and type of investments purchased.
Insight gained from Schwab’s market segmentation process revealed a group of customers that are willing to pay more for extra benefits. They learned that there was incremental value for both the customers and the company when customers were allowed to build their portfolio of financial services around their needs and Schwab delivers it to their specifications.
5. Which segmentation strategy would you recommend?
a) Multi-segment Segmentation b) Mass Customization Strategy c) Other:_____________
Why?