Final answer:
Charging higher prices to groups with more elastic demand is not one of the steps in segmenting customers. Segmentation includes dividing consumers, giving discounts based on identifiable characteristics, and not basing discounts on hard-to-change characteristics. To classify demand as elastic, inelastic, or unit elastic, one must calculate price elasticity from percentage changes in quantity demanded and price.
Step-by-step explanation:
In segmenting customers into groups, the following is not one of the three steps: charging higher prices to groups with more elastic demand. Proper segmentation should involve: dividing consumers into groups whose demand differs, giving discounts to chosen groups based on identifiable characteristics, and generally not basing discounts on characteristics that are difficult to change. Now, looking at the given task of calculating the price elasticity of demand from Table 5.5 for smart phones, the elasticity can be classified into three categories: elastic, inelastic, or unit elastic.
To calculate price elasticity of demand, you would normally use the formula Percentage Change in Quantity Demanded divided by Percentage Change in Price. A result greater than one indicates an elastic demand, less than one indicates an inelastic demand, and exactly one indicates a unit elastic demand. Without the actual data from Table 5.5, we cannot provide the specific calculations and classifications for points B to C, D to E, and G to H.