Many durables are bought such as cars home appliances

Info icon This preview shows pages 53–55. Sign up to view the full content.

View Full Document Right Arrow Icon
chase at a high rate. Many durables are bought, such as cars, home appliances, and furniture. Addition- ally, 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, toys, and some medical products. MIDDLE-AGED MARRIED WITH NO CHILDREN. Members of this group enjoy a better financial position and are interested in travel, recreation, self-education, and home improvements. 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: 123 OBJ: 08-4 TOP: AACSB Communication | TB&E Model Customer 10. Describe psychographic segmentation and discuss why marketers use the basis for segmenting mar- kets. List the four psychographic variables commonly used as segmentation bases. ANS: Age, gender, income, ethnicity, family life-cycle stage, and other demographic variables are usually helpful in developing segmentation strategies but often do not paint the entire picture. Psychographic variables can be used to "flesh out" the consumer description. Psychographic variables alone can be used to segment markets, or they can be combined with other segmentation variables. Psychographic variables include: Personality Motives Lifestyles Geodemographics PTS: 1 REF: 122-123 OBJ: 08-4 TOP: AACSB Communication | TB&E Model Strategy 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 de- signed marketing programs. The text example is H-E-B Grocery Company tailoring merchandise in each store to patron preferences. PTS: 1 REF: 122 OBJ: 08-4 TOP: AACSB Communication | TB&E Model Strategy
Image of page 53

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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, Rembrandt Fresh Breath--Close-up, Pepsodent Tartar Control--Tartar Control Crest, Tartar Control Colgate Plaque Reduction--Dental Care, Viadent, Dentagard, Peak, Metadent Stain Remover--Pearl Drops, Topol, Caffree, Zact, Clinomyn, Rembrandt Gingivitis/Gum Disease Prevention--Crest, Colgate, Metadent Flavor/Great Taste--Aim, Colgate, Stripe Fun for Kids--Crest Sparkle, Oral-B Sesame Street, Colgate Jr.
Image of page 54
Image of page 55
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern