Scenario 10-6 Facing Stiff Competition from Walmart and K-Mart, Executives for Target

question 35

Multiple Choice

Scenario 10-6
Facing stiff competition from Walmart and K-mart, executives for Target stores have decided to focus on reaching more affluent shoppers and luring them away from traditional department stores. They have already expanded the products and brands they offer to include reasonably priced items by modern design masters. Target hopes to draw more affluent shoppers into its stores through a series of advertising campaigns that are presently in the planning stages. Most of the advertising budget will be directed to ads in regional luxury magazines, which, research shows, are frequently read by affluent individuals.
-(Scenario 10-6) Another magazine ad designed for Target's new campaign shows a well-dressed shopper pushing her loaded Target cart to her Jaguar,showing satisfaction in the parking lot as she spots another consumer loading Target shopping bags into her Jaguar.Which objective is this ad hoping to achieve? 

• A) To instill brand preference 
• B) To change the actual experience through ad visuals 
• C) To situate the brand socially 
• D) To change behavior by inducing anxiety

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Definitions:

Disposable Income

The amount of money available to households after paying income taxes, which can be spent on necessities, savings, or leisure activities.

Consumption

The use of goods and services by households or individuals.

Disposable Income

Resources earmarked for household financial activities in saving and spending following income tax calculations.

Saving

The segment of one's income that is not consumed but saved for future investments or use.