Answer following questions need urgent Answer the following questions: • List and describe in detail the five criteria used to determine if a segment is attractive and worth pursuing. Using the known variables in the scenario below, how much profit will Jared make on his new idea? • Will you advise Jared to go ahead with his idea? Jared has a seasonal lawn-mowing business in Ocean City, NJ running from April 1 to October 1. He wants to expand his business. Through market research, he has identified a section of homes within another zip code with similar characteristics to his current customer base. Jared has targeted 400 homes within the zip code. He estimates that 10 percent of them would be likely to use his service. He charges $25 per mowing and on average customers mow their lawns 20 times a year. Jared estimates the variable costs to expand his business will be $5 per mowing and his fixed costs (gas, storage) are $2,000.
Answer following questions need urgent Answer the following questions: • List and describe in detail the five criteria used to determine if a segment is attractive and worth pursuing. Using the known variables in the scenario below, how much profit will Jared make on his new idea? • Will you advise Jared to go ahead with his idea? Jared has a seasonal lawn-mowing business in Ocean City, NJ running from April 1 to October 1. He wants to expand his business. Through market research, he has identified a section of homes within another zip code with similar characteristics to his current customer base. Jared has targeted 400 homes within the zip code. He estimates that 10 percent of them would be likely to use his service. He charges $25 per mowing and on average customers mow their lawns 20 times a year. Jared estimates the variable costs to expand his business will be $5 per mowing and his fixed costs (gas, storage) are $2,000.
Chapter6: Target Markets: Segmentation And Evaluation
Section: Chapter Questions
Problem 2DYMP
Related questions
Question
4
Transcribed Image Text:Answer following questions need urgent
Answer the following questions:
List and describe in detail the five criteria used to determine if a segment is attractive and
worth pursuing.
Using the known variables in the scenario below, how much profit will Jared make on his new
idea?
Will you advise Jared to go ahead with his idea?
Jared has a seasonal lawn-mowing business in Ocean City, NJ running from April 1 to October 1.
He wants to expand his business. Through market research, he has identified a section of homes
within another zip code with similar characteristics to his current customer base.
Jared has targeted 400 homes within the zip code. He estimates that 10 percent of them would be
likely to use his service. He charges $25 per mowing and on average customers mow their lawns 20
times a year. Jared estimates the variable costs to expand his business will be $5 per mowing and
his fixed costs (gas, storage) are $2,000.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
