Marketing Final Exam

Vacations are still bought young married with

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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. PTS: 1 REF: 126-128 Communication 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 markets. ANS: 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. PTS: 1 REF: 127 Communication 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. ANS: 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. PTS: 1 REF: 127 Communication 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 that benefit. ANS: 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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