Decision Point: Which Segment to Target

Although annual spending on camping gear and apparel ranges from $$300$ to $$2000,$ industry data suggests that the average "high$-$end" camper spends $$850$ per year on the latest camping gear.

Using Camp Plus's transaction data, you calculate total annual spending for each of its $10,000$ customers and then apply industry spending to calculate each customer's share of customer $($SOC$).$ Using statistical analysis, you group the customers into five distinct segments, as follows:

Segment $1$: SOC $=1-15\%(2000$ customers$)$

Segment $2$: SOC $=16-45\%(3000$ customers$)$

Segment $3$: SOC $=46-65\%(2500$ customers$)$

Segment $4$: SOC $=66-90\%(1500$ customers$)$

Segment $5$: SOC customers