Why Is Lifestyle Analysis Important for Marketers

question 103

Multiple Choice

Why is lifestyle analysis important for marketers?

• A)Because a company can decide on effective pricing policies and achieve profit maximization
• B)Because a company can offer extra features which particular lifestyle groups value and are willing to pay for
• C)Because a company may choose to target a particular lifestyle group with a product offering, and use advertising which is in line with the values and beliefs of this group
• D)Because a company needs to identify potential consumers which they can target in future with their marketing communications efforts

---

Definitions:

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts and/or the physical factories, machinery and equipment used to produce goods.

Profit-Maximizing Amounts

The levels of output or operation at which a business achieves the highest possible profit, determined by analyzing costs and revenues.

Total Outlay

The total amount of money spent or investment made in acquiring an asset, completing a project, or pursuing an activity.

Marginal Revenue Product

measures the increase in revenue that results from the addition of one more unit of input while holding all other inputs constant.