Discuss how tiering helps a leading U.S. market research agency better understand its customers

What will be an ideal response?

This agency uses the four-tier pyramid suggested by Zeithaml, Rust, and Lemon. Platinum clients are large accounts that are willing to plan a certain amount of research during the year and also able to commit to the timing, scope, and nature of the projects. They make capacity management easy and provide high margins because of the size of the projects. Gold accounts are similar, but represent a more price sensitive segment. These accounts are still fairly large, but unwilling to commit to a specified amount of work during the year. Iron accounts spend a moderate amount in research and commission work on a project-by-project basis. They seek the lowest price and often do not allow the research firm time to finish a quality job. Lead accounts request isolated, low cost projects, which are quick and dirty and often invite multiple bids on their business. These accounts also tend to be high maintenance, as they do not understand research well enough.