Exam 2: Market Segmentation and Real-Time Bidding

Social Class is the division of members of a society into a hierarchy of distinct status classes, so that members of each class have relatively the same status and members of all other classes have either higher or lower status.

Many marketers target the generation that is 18 to 34 years old, known as the ________.

Geographic characteristics serve as the core of almost all segmentations.

Procter and Gamble (P&G), the world's largest maker of consumer goods and advertiser, has been worried about the financial hardship of America's middle class, which it believes will be long lasting. P&G's definition of middle class is households with annual income between $50,000 and $100,000, which amounts to 40% of the country's households.

In the VALS typology, Thinkers are motivated by ideals and tend to have high resources. They tend to be well educated and actively seek out information in the decision-making process. This segment tends to prefer ________.

Rosetta Car Rental exercises ________ when it stocks more convertible cars in California than in New York.

Marketers use segmentation research to identify the most appropriate media in which to place advertisements.

________ consists of looking at merchandise at a physical store, scanning its barcode with smartphones and using these devices to check the items' prices and purchase the items online.

What is the difference between behavioral data and cognitive data? Explain the difference in measurement and provide examples of consumer-intrinsic and consumption-based information associated with each type.

The VALS typology classifies the American adult population into eight distinctive subgroups based on their motivations and level of resources. The three primary motivations include ________.

________ is the process by which a company intentionally changes the distinct image and identity that its product or brand occupies in consumers' minds.

A composite variable that includes marital status, size of family, age of family members (focusing on the age of the oldest or youngest child), and employment status of the head of household classifies the family into a "typical" stage.

P$YCLE segments consumers based on the household's lifestage class.

Geofencing consists of sending promotional alerts to the smartphones of customers who are near or had entered the store.

CRUISE MINI CASE: Sunshine Cruise Lines is a cruise operator that offers three- to seven-day cruises along five Caribbean routes. It has developed a reputation as a party cruise operator and the majority of its revenue comes from vacationing college students. This type of customer demand is highly cyclical, and Sunshine finds that repeat purchase is high while its consumers are in college, but practically disappears after graduation. In an effort to encourage its customers to continue taking Sunshine Cruises after they have graduated, the cruise operator has begun offering Adventure Cruises, with port stops on islands known for eco-tourism and biodiversity, both on land and offshore, appealing to young professionals who like to hike and scuba dive or snorkel. In contrast to its party cruises, Sunshine focuses its marketing message for Adventure Cruises on activities at port stops and the convenience of being able to explore several Caribbean destinations from the comfort of a single ship. Adventure Cruises are roughly 15% more expensive than party cruises, priced to discourage a raucous college-age party crowd, and do not allow children under 18. The first season of Adventure Cruises was a great success and, much to Sunshine's surprise, attracted not only the intended young professional crowd, but also many empty nester couples who were looking for a reasonably priced, active vacation. -In the CRUISE MINI CASE, Sunshine markets Adventure Cruises as a way to see multiple islands from the comfort of a single ship, alleviating the hassle of flying between islands and staying in a different hotel every couple of nights. Targeting consumers who view this convenience as appealing is an example of ________.

________ is felt by many marketers to be a strong indicator of the ability to pay for a product.

In the VALS typology, Makers are motivated by self-expression and tend to have low resources. They choose hands-on constructive activities and spend leisure time with family and close friends. This segment tends to prefer ________.

As a base for market segmentation, ________ is/are commonly computed as a weighted index of education, occupation, and income.

Every segment that can be identified is inherently viable and profitable as a basis for targeted marketing.

Consumers belonging to the VALS segment called Believers are motivated by desire for achievement and have moderate resources, so they are trendy and seek approval from others.