Exam 2: Consumer Segmentation and Positioning

Because it is logical to assume that size of a potential market segment is positively correlated to profit, pursuing the largest market segment makes sound business sense.

In the price segmentation model presented in your readings, the "convenience segment" is less concerned with price and wants to have a high level of value and/or product differentiation.

Volvo manufactures a station wagon to meet all of the government's strictest safety ratings, and Volvo emphasizes this in its advertising, claiming to be, "the safest car on the road." From this information, it appears that Volvo may be engaging in what type of segmentation strategy?

Cindy, Bob, and Tina are all college students. Cindy is a music major. While she enjoys composing and playing her own music, she doesn't have strong ambitions toward having a career. Ideally, she would like to find a nice guy (but not a business major), get married, move out to the country so she can have a garden and maybe even a horse, and teach piano lessons out of her home. Bob is currently a finance major, after recently changing from management. (He has also been a political science major and an engineering major - they all seem cool, but none of the majors seem to be able to hold his interest.) Besides changing majors, Bob loves to play club sports, really enjoys going to bars and socializing with his fraternity brothers, and considers himself to be fairly "hip" and "cool." Tina is an education major. Like Cindy, she eventually wants to settle down, get married, and have children, although she wants to work with children as a school teacher. Ideally, she would like to move back to her small-town home, where the rest of her family lives. She often goes home on the weekends because her strong Christian religion doesn't condone drinking and "partying." Based on the descriptions provided above and according to the VALS System, which student most likely belongs to the "makers" segment?

Define the steps in the "divide and conquer" process described in your readings.

Premium pricing, which is sometimes called prestige pricing, is pricing a brand at the top end of a product category's price range.

An underlying assumption when using geographic-based segmentation is that consumers located in geographic proximity share similar product and service needs and preferences.

One unfortunate consequence of market segmentation is that consumers spend more time in search, evaluation, and purchase activities.

One key assumption that underlies market segmentation is consumer preference homogeneity.

An exurb refers to: