The practice of targeting (and obtaining) the best (that is, the most profitable) consumers in a market. Old-established firms in a market resent it greatly when new entrants start cherry picking among their customers.

Where businesses target specific areas of the market to the exclusion of other less attractive areas.

Whenever the University establishes contracts for commodities, the goal is to provide the best pricing and service overall for a specific group of items. The best price will not be offered on all items, and shoppers will always be able to find a lower price for a specific item on any given day. Only buying those items from a University contact that have best prices and going outside the contract for other items is called "cherry-picking." In not too much time, this practice undercuts the overall agreement and the University will lose the overall benefits of the contract. When vendors realize that University buyers are going outside the contract to purchase items, the vendors are less likely to offer good pricing the next time the contract goes out to bid.

The practice of some financial institutions through which business is targeted at specific market segments to the exclusion of others. Less desirable business is either refused out of hand or offered at uncompetitively high prices or rates of interest.