Rachel Is the Owner of a Gift Shop

question 153

Multiple Choice

Rachel is the owner of a gift shop.She understands the need to segment her market,and available marketing research indicates there is much demand in the community for personalized gifts.She has few resources and cannot engage in intensive consumer research to precisely identify a segment.Which of the following strategies would you suggest she employ?

• A) Develop an undifferentiated strategy, because it is not a large community and she could create a single marketing mix that would serve the entire community.
• B) Employ a macrosegmentation strategy because the data needed for such a strategy are both easy to get and fit her needs exactly.
• C) Use a single-variable strategy because it offers an inexpensive alternative that would not require much experience to employ.
• D) Use a multiple-variable segmentation strategy because it is easier to use than single-variable segmentation.
• E) Conduct a VALS investigation of her buying market.

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Definitions:

D-type Steel Sheets

Specific grade of steel sheets characterized by certain mechanical properties and composition, often used in manufacturing.

Solver

An optimization tool in spreadsheet programs that finds the optimal solution to a problem by changing multiple variables within constraints.

Optimal Number

The most favorable, efficient, or effective quantity determined through analysis or calculation for a specific criterion.

Monthly Profit

The net income earned by a business over the course of a month after all expenses have been subtracted from total revenue.