Exam 3: Segmentation

A popular tool for segmenting that uses psychographic data, and that is based on the belief that one's attitudes and value system determine one's orientation to certain products and/or brands is called .

Company ABC is interested in better understanding how different groups of customers feel about its product. In order to do this, Company ABC will need to .

Empty nesters tend to start dreaming of spending their greater discretionary income on .

We can directly observe attitudes, but we cannot use behaviors to infer attitudes and psychological states.

Why do many segmentation schemes fail? Explain.

Coupons that are printed at grocery checkouts are a function of items the customer just purchased.

Since most marketplaces are international, country and cultural differences can be tremendous.

Who created the hierarchy of needs?

Opinion leaders, innovators, or market mavens are known for their expertise and involvement in a category.

Marketers identify segments best when iterating between two approaches. What are the two approaches?

Entrepreneurs may need to approximate Prizm and Vals data, because they are .

There is a rule of thumb that says it costs times more to acquire a new customer compared to maintaining a loyal one.

Explain mass marketing and one-to-one marketing.

Consumers have unique needs and desires. Economists call this .

means that each customer serves as his or her own segment. This approach sounds appealing from the customer point of view because the product would be tailored specially for each person's idiosyncratic desires.

Age is an easily identifiable demographic variable.

It is useful for marketers to understand the psychological and lifestyle choices that are relevant to the brand(s) the marketer is pitching.

All of the qualities that marketers care about may be mapped onto segments in any product category.

The contrast between mass marketing and one-to-one marketing illustrates that segments become more as they increase in size.

On a continuum from "mass marketing" to "one­to­one marketing," market segmentation is in the middle.