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Unformatted text preview: , and are recreation oriented. They buy kitchen equipment, basic furniture, cars, vacations,
and items necessary for the “mating game.” YOUNG MARRIED WITHOUT CHILDREN. This group is financially better off, so members
purchase at a high rate. Many durables are bought, such as cars, home appliances, and furniture.
Additionally, vacations are still bought.
YOUNG MARRIED WITH CHILDREN. This group concentrates on home ownership and
raising children, so liquid assets are low. They like new and advertised products. They tend to buy
appliances, baby items, televisions, and some medical products.
MIDDLE-AGED MARRIED WITHOUT CHILDREN. Members of this group enjoy a better
financial position and are interested in travel, recreation, and self-education. They tend to buy
home improvements, vacations, and luxuries.
OLDER UNMARRIED. Cuts in income curtail spending of this group. Purchases are more
focused on medical care and medical products.
KEY: CB&E Model Customer OBJ: 08-4 TOP: AACSB MSC: BLOOMS Synthesis 10. What is psychographic segmentation? Discuss why marketers use the basis for segmenting
Psychographic segmentation is market segmentation on the basis of personality, motives,
lifestyles, and geodemographics. While age, gender, income, ethnicity, family life cycle stage,
and other demographic variables are usually helpful in developing segmentation strategies, often
they do not paint the entire picture. Psychographics provide more detailed descriptions of market
segments. Psychographic variables alone can be used to segment markets, or they can be
combined with other segmentation variables.
KEY: CB&E Model Strategy OBJ: 08-4 TOP: AACSB MSC: BLOOMS Synthesis 11. What is geodemographic segmentation? What is the result of geodemographic segmentation?
Give one specific example that illustrates this type of segmentation.
Geodemographic segmentation clusters potential customers into neighborhood lifestyle
categories. It is a combination of geographic, demographic, and lifestyle segmentation. The result
of geodemographic segmentation is micromarketing, which is the targeting of small geographic
regions with specially designed marketing programs. The text example is H-E-B Grocery
Company tailoring merchandise in each store to patron preferences.
KEY: CB&E Model Strategy OBJ: 08-4 TOP: AACSB MSC: BLOOMS Synthesis 12. What is benefit segmentation? For toothpaste, list six benefits that might be sought by consumers.
For each benefit, give an existing brand name that best exemplifies segmentation according to
Benefit segmentation is the process of grouping customers into market segments according to different benefits sought from the product.
Student answers are likely to vary greatly. Possible benefits for toothpaste could include:
Cavity/Decay Prevention: Crest
White/Bright Teeth: Ultra Brite, Gleem, MacLeans, Plus White...
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- Fall '13