Chapter6: Target Markets: Segmentation And Evaluation
Section: Chapter Questions
Problem 1SC
Related questions
Question
Transcribed Image Text:11:28
◄ Search
Done
Iti-iad-prod.instructure.com AA
☆
that they will pay more for the leather seating
and upgraded features. When the company
offers a lower end model, those customers'
expectations are not met. Therefore they
perceive it as a low price and Answer
quality model (a.k.a an Economy offering). For
the mainstream customer, though, the offer is
still high quality, in comparison to the other
brands and yet low price for a Mercedes, so
within reach. So the mainstream buyer's
perception of the cars is that it is using a
Answer strategy.
economy
economic
low
Return
penetration
premium
il 5G 46
luxury
skimming
Submit
high
Submit
Transcribed Image Text:11:28
◄ Search
Done
il 5G 46
Iti-iad-prod.instructure.com AA
Return
Submit
We will work on a customer empathy analysis
through the fill in the blanks paragraph below.
To be able to answer the questions, you are
asked to empathize with two target segments
for Mercedes and BMW:
1. Primary target of luxury car buyers
2. Secondary target of currently
mainstream, but ideally prospective
luxury buyers
While the video case title suggests cheap
luxury cars do not succeed in the automotive
industry, there is a subtle point made towards
the end: Mercedes reports that 2/3 of CLA
buyers return to buy a higher class Mercedes
later on. Given the main goal with cheaper
offers, is to expand out of the luxury buyer
market and into the top of the mainstream
market, one may argue that this strategy is
actually successful. Overall customer
perception of value luxury car manufacturers
offer is one of high quality and high price, in
other words a Answer offering. The
cheaper makes for these cars, on the other
hand, appeal to different target segments,
differently. The loyal Mercedes or BMW driver
appreciates the Answer benefits enough
that they will pay more for the leather seating
and upgraded features. When the company
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you