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Perception is vital example 2 amtrak vs flight san

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Perception is Vital Example 2: Amtrak vs. Flight San Diego-Los Angeles Amtrak: 2-1/4 hours each way, $26 round trip United Airlines: 2-1/2 hours, $110 to $204 Charlotte-Raleigh Amtrak: 3-1/2 hours each way, $38 round trip United Airlines: 2-1/2 hours, $158 to $372 New York-Albany Amtrak: 2-1/2 hours each way, $65 round trip United Airlines: 3-1/2 hours, $68 to $428 Chicago-Milwaukee Amtrak: 1-1/2 hours each way, $38 round trip United Express: 2-1/2 hours, $65 to $372
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Benefit Segmentation Benefit as a segmentation variable Why useful? Consumers are heterogeneous in their relative importance weights Where W j for j=1,..,m: Relative importance weight of j th attribute More relevant for the segmentation purpose than others Other segmentation variables (Geographic, Demographic/Socio- economic, Behavioral, Psychographic) serve as proxies for “Benefit” Utility Product = W 1 Attr 1 + W 2 Attr 2 +…+ W m Attr m More precisely, use relative importance weights Recall that However, “Benefit” is NOT directly observable Identified using marketing research techniques
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Benefit Segmentation (Perceptual) Product map Premium Budget Heavy Light consumers
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Marketing Implications of the MA model Utility Product = W 1 Attr 1 + W 2 Attr 2 +…+ W m Attr m What to manipulate? Altered brands evaluated (Altered consideration set) Altered attributes considered Altered weights Utility My Product > Utility Best Alternative For my target consumers, Altered attribute perceptions
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