Scenario 6-5 Madison State University Has a Reputation for Having a Powerful

question 18

Multiple Choice

Scenario 6-5
Madison State University has a reputation for having a powerful intercollegiate coed bowling team. Seating in the campus bowling alley only allows for 400 fans to attend their matches. Long lines for seats have formed in the past, with many fans leaving disappointed because they could not get a ticket. As a result, the school's administrators decided to institute a "priority seating" plan in which fans would be given access to advance tickets based on the following schedule:"Lanemaster Club" - $10,000 annual donation to the bowling program - guaranteed free box seats to any match(100 seats total) "Strike Club" - $1,000 annual donation to the bowling program - guaranteed free bleacher seats to any match (100seats total) "Kingpin Club" - participants in local recreation bowling leagues - guaranteed bleacher seats for $10.00 to anymatch (100 seats total) "Alleycat Club" - students who have maintained a 3.9 GPA or better - guaranteed bleacher seats for $1.00 to any match (100 seats total)
-(Scenario 6-5) Each summer,the MSU Athletic Director looks at the city map,chooses a different local neighborhood,and knocks on doors,encouraging residents to join one of the supporting clubs.He then keeps track of which neighborhoods are the strongest supporters,and which may need more prompting in the future.In this way he is using a         segmentation strategy.

• A) psychographic 
• B) heavy-user-focused 
• C) geographic 
• D) demographic

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Definitions:

Marginal Utility

The change in total utility obtained by consuming one additional unit of a good or service.

Consumption Bundle

A set of goods or services that a consumer chooses to purchase at a given time.

Good 1

Typically a term used in economics to represent a specific commodity or product in theoretical discussions.

Budget Constraint

A limit on the consumption choices of individuals or entities based on their income and the prices of goods and services, representing all possible combinations of goods and services that can be purchased.