Mont Blanc uses a differentiation strategy that focuses on the social and emotional aspects of their product to appeal to a specific consumer segment. Which of the following initiatives would most be in keeping with their strategy?

Multiple Choice

an increase in the service warranty from 1 year to 2 years

an agreement with OfficeMax to more prominently show Mont Blanc pens in the writing instrument section of their stores

the release of a new pen that uses a smoother roller ball effect

an agreement with online providers to offer discounted pens

an engraving service for pen owners who may wish to will their pens to loved one

Which of the following would NOT be a reason for Bic to decide to compete in Mont Blanc’s market?

Multiple Choice

Bic’s reputation would be detrimental when competing in Mont Blanc’s target market.

Bic’s marketing department isn’t geared to addressing Mont Blanc’s target market.

Bic is a large publicly traded company with significant financial resources.

Bic’s manufacturing facilities would need to be retooled to compete in Mon Blanc’s target market.

Bic’s distribution capabilities are not well designed to reach Mont Blanc’s target market.

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?

What is the relationship among market segmentation, target markts, and consumer profiles?

Match each economic concept with the scenarios that illustrates it