Final answer:
A four-tier customer segmentation strategy helps to identify customers who require different levels of attention and potentially increase profitability through targeted strategies for each tier. The company can also employ relationship marketing within this framework.
Step-by-step explanation:
When discussing a company that segments its customers by profitability using a four-tier scheme, it's important to understand the implications of such an approach. Option B is correct; this type of segmentation identifies customers who need different sorts of attention since it categorizes them based on profitability, which often requires different marketing and service strategies.
Furthermore, option C is also accurate as the firm can potentially increase profitability by finding ways to boost sales to lower-level customers or by moving them up to higher tiers. This could involve targeted marketing, loyalty programs, and service improvements tailored to different customer segments. However, this does not mean that the company cannot use relationship marketing effectively, which makes option D incorrect. In fact, relationship marketing can be used to enhance the value offered to each customer tier.
In summary, a four-tier customer segmentation strategy is sophisticated and multifaceted, potentially allowing a company to cater to the distinct needs of different customer groups and to devise strategies aimed at upgrading customers to higher profitability tiers.