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Unformatted text preview: ury automobiles. With
increasing fuel prices and stricter U.S. fuel-economy standards coming down the pipeline,
Daimler doesn’t want to be left behind. Daimler is behind its competition, though. Its German
rivals, Audi and BMW, have been relatively successful in the United States. BMW’s Mini
Cooper, demanding as much as $34,000, has already driven away with some of Daimler’s potential sales. While Daimler already offers the Smart car in the United States, the new offerings
will not be going after the same consumers.
147. Refer to Mercedes-Benz. Baby boomers have money to burn and will be the primary target for the
downsized luxury vehicles offered by Mercedes. Many of them will want this type of car to feel
young again. This group is considered a(n):
consumer advocacy group
A market is people (baby boomers) with needs (feeling young) and the ability and willingness to
buy (money to burn).
KEY: CB&E Model Customer OBJ: 08-1 TOP: AACSB Reflective MSC: BLOOMS Application 148. Refer to Mercedes-Benz. Mercedes-Benz’s baby boomers are a useful segment because they meet
certain criteria. Which of the following do the baby boomers meet?
Identifiability and measurability
All of these
The successful criteria for market segmentation include substantiality, identifiability and
measurability, accessibility, and responsiveness.
KEY: CB&E Model Customer OBJ: 08-2 TOP: AACSB Reflective MSC: BLOOMS Application 149. Refer to Mercedes-Benz. Daimler plans to introduce the downsized luxury vehicles in major U.S.
cities, such as Los Angeles, New York, Miami, Atlanta, Dallas, and Chicago, because market
research has shown that these metropolitan areas have the greatest potential with respect to the
consumers able to purchase a $30,000+ smaller luxury vehicle. Which type of psychographic
segmentation does this represent?
Psychographic segmentation include variables such as personality, motives, lifestyles, and
geodemographics. This is an example of geodemographics, which is segmenting potential customers into neighborhood lifestyle categories.
KEY: CB&E Model Customer OBJ: 08-4 TOP: AACSB Reflective MSC: BLOOMS Application 150. Refer to Mercedes-Benz. One potential problem is that some of the purchasers of Daimler’s
downsized luxury vehicles could be consumers who would have purchased a larger, higher-priced
Mercedes-Benz. This situation is called:
Cannibalization is a situation that occurs when sales of a new product cut into sales of a firm’s
KEY: CB&E Model Strategy OBJ: 08-7 TOP: AACSB Reflective MSC: BLOOMS Application...
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This document was uploaded on 09/29/2013.
- Fall '13