Hire-Purchase / Installment Sales

The hire purchase or installment sale is a kind of credit allowed to consumers. Like in the charge account credit is not in the form of cash; it is in kind.

This kind of consumer finance is also immensely prevailing everywhere. It is most used by salaried or those people who belong to low or middle income groups.

This method of finance prompts consumer to hire-purchase TV, furniture, cars, VCR , Refrigerators, and other home appliances. To avail this opportunity the buyer has to pay on the spot around 10 to 25 percent of the total price. This payment is known as Down Payment. The balance is payable in six, twelve, or eighteen months equal installments. The installments include interest.The greater the period the higher amount of interest is charged.

Concept of Market Segmentation

It is an attempt to escape competition by tailoring company's product to a certain target of the market. Market Segmentation is an attempt to render perfect satisfaction to a limited part of the market.
Market segmentation is the process of dividing a total market into market groups consisting of people who have relatively similar product needs. The purpose is to design a marketing mix that precisely matches the needs to individuals in a selected segmentation process.

Market

A market is a mechanism through which buyers and sellers interact and trade goods and services. The combine activities of buying and selling create equilibrium in the market

Market Segmentation

Market segmentation is a process of dividing a total market into market gaps consisting of people , who have relatively similar producer needs. The purpose is to design a marketing mix that more precisely matches the needs of individual in a selected segment or segments. Market segments arise from segmentation process. It is carried to provide greater satisfaction to homogeneous potion of a total market.