ONTELA PICDECK – Understanding the market place – Assignment 1
Questions:
1. Based only on the cluster analysis data, which preference related variables are most useful for segment identification and evaluation? Which variables are least useful?
This qualitative research aims in identifying and evaluating the potential customers of PicDeck and determinate a precise target.
The interviewees have been asked to answer questions based on a ranking system from 1 (strongly disagree) to 5 (strongly agree). The questions investigate the needs: Q 1, 6 – 9, and interest in this new technology service: Q 2 - 5, as well as the willingness of the interviewees to pay for this service: Q 11 – 13. The cluster method divides the interviewees
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They are interested in an efficient, fast & easy transfer of their photos. They would like to have and better phone cameras to take shoots of them and their friends all day long. They are looking for the latest technology even if they are price conscious. They still value the service at 7.93 $.
Cluster 4: Traditional & limited users of technology, 16%
Housewife, or middle-class professional in their 40’s. They are not interested in a more efficient transfer and do not think it is currently difficult uploading photos. We could wonder if they already tried it. However, they do are interested in better quality phone cameras as a back-up tool in case they couldn’t use their “real” digital camera. They are not really keen on social networks. The only value they give to the Ontela service is the security: the possibility to save the photos in the computer. In conclusion, because they do not really want the Ontela service, they are not willing to pay a lot for it: 3.90 $
Cluster 5: Traditional but into the world, looking for convenience, 15%
40-60 years old, housewives, professionals or early retired. They are interested in a better quality phone cameras and an easiness of uploading the pictures to send them by email and keep them in a safe place. They are not reluctant in having only once device: Smartphone that shows they are quite open-minded to the innovations. If they are not early adopters,
Geographic segments would be based on a person’s country, region, or city size. Lastly, behavioral would consist of groups divided by occasions, usage, or attitudes when making a decision on whether or not to purchase the product/service (Werner, 2017). These variables can be analyzed through various methods including interviews, questionnaires, and customer data (Harvard, 2016).
The cell phone is a phenomenon of modern and high-tech technology that consumers all over the world desire and need. Innovatively, manufacturers design features that include calendars, Internet, GPS tracking, E-mail functions, and cameras. Interestingly, the popularity of these features differ throughout the world and among members of various cultures. Surprisingly, research has shown that the size, shape, and style of the phones are most important to American consumers. In comparison, the Russian culture values the durability and reliability of the phone. Understandably, these qualities are important due to the economy and lower income of the consumers. In recent years, the economy has begun to grow, so the increase in income places a higher
2. The rise of open source software has lowered computing costs for start-up and blue chip companies worldwide.
This form of segmentation and variables are very popular for marketers because they are often associated to consumers’ wants and needs, and they are easily measured.
Using the full spectrum of segmentation variables, describe how Scouts Canada could segment its market place.
The number of optimal segments in the market is 3 segments because there was a big jump in the dendogram and the distance was a significant increase. To find the optimal number of segments in the market by analyzing a dendogram you need to find the first big increase in distance from the clusters. Also, you need to draw a line from between the distance of the big jump, and identify how many it intersects the dendogram. That will give you the number of customer segments you have. For this case there are 3 segments.
1. Develop a segmentation scheme for the automobile industry in your country of residence. Using benefit segmentation, behavioural segmentation, or some other basis of segmentation, identify at least four of the major groups of consumers in this market that are evident to you. Justify, from a marketing perspective, (explain) why your segmentation scheme is an appropriate one, using the criteria in Figure 3.2 (page 77). (5 marks)
2Wheels conducts exhaustive customer surveys to discover customer preferences and attitudes towards the brand. Sally uses cluster analysis to classify the data and help the company determine the trends in the information. Sally is using the technique of ________.
3. Research and report upon each of the three technology solutions. For each solution include:
You have been hired by a medium size (approximately 200 employees) widget manufacturing company to do a complete evaluation of their computer needs and make recommendations to them about an information system to support their business. Currently several of their support departments are using manual processes and they wish to automate their accounting and human resources business processes. They also want to harness the power of the Internet in their business.
In order to select the segment, there is a need to develop measure of segment attractiveness. The following are the list of some of the criteria that I used in selecting my target segment:
the service and I don’t see myself going by that my previous carrier. There trend of people
First, a good target market would be the “Baby Boomer” generation. This generation’s age demographic falls into the 45-64 year range which makes up about 30% of internet usage in the United States. With the rise of smart phone technology, even the Baby Boomers are catching on to the trend. Roughly about 15% of smart phone users are over 55 years old and with the
The segmentation has been done on the basis of buying behavior of the customers. Knowledge of segment buying behavior can help redirect marketing resources for profit gain.
customer groups. Bose needs to be careful not to limit its evaluations to just age and race but