Tapestry Segmentation, an ESRI Service, Was Described in Detail in Chapter

question 18

Multiple Choice

Tapestry Segmentation, an ESRI service, was described in detail in Chapter 7 on Standardized Information Sources. Tapestry applies a process of segmentation that identifies neighborhoods by the major demographic and consumption patterns and then determines which of these neighborhood "segment types" is the client's potential customers. Which of the following best illustrates how this service was applied in your text?

• A) ESRI segments were examined to determine which segments were likely to be gourmet coffee drinkers. Once the segments were identified, ESRI could provide direct mail lists that identified the names and addresses of gourmet coffee drinkers. This allowed Donofrio's Coffee to send these "likely" customers a frequent user card to promote their patronage.
• B) The owner of a Nature's Beauty retail store has a loyalty club of 400 members who purchase regularly, and she wants to attract other prospective customers who match the club member demographic and lifestyle profile. By determining the distinguishing characteristics of the club members, the owner can identify the Tapestry Segmentation segments, i.e. "Metropolitans," "Metro Renters," etc. which will allow the owner to locate and establish communications with members of these segments.
• C) ESRI has data stored in a common database that identifies zip code areas that offer the most potential in terms of sales for a gourmet coffee shop like Donofrio's. Donofrio's subscribed to this information for a fee, and the information was used to help find new coffee shop locations.
• D) Present customers for a gourmet coffee shop were determined. ESRI then, through its Community Tapestry syndicated data service, found census data which identified household addresses of the present customers. This information allowed Donofrio's Coffee to target customers with promotional offers to induce greater sales during warm months of the year.
• E) None of the above. There was no example illustrating how Community Tapestry was applied.

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Definitions:

Marginal Utility

The additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.

Budget Constraint

A budget constraint outlines the mix of goods and services a consumer is able to buy, based on their income and the prices of those goods and services.

Budget Constraint

A budget constraint represents the combination of goods and services that a consumer can purchase given their income and the prices of those goods and services.

Marginal Utility

The incremental enjoyment or value obtained from consuming an extra unit of a good or service.