Latent Customer Heterogeneity Quiz & Flashcards

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Questions and Answers

What is customer heterogeneity?

The differences among customers (correct)

The purchasing power of customers

The similarities among customers

The preferences of customers

What is customer heterogeneity?

The purchasing behavior of customers

The preferences of customers

The similarities among customers

The differences among customers (correct)

What are the five sources of customer heterogeneity?

Income, education, occupation, family size, and religion

Individual differences, life experiences, functional needs, self-identity/image, and marketing activities (correct)

Demographics, psychographics, geographics, behavior, and attitudes

Personality, values, interests, lifestyles, and opinions

What are the five sources of customer heterogeneity?

Individual differences, life experiences, functional needs, self-identity/image, and marketing activities Signup and view all the answers

What is latent customer heterogeneity?

The potential differences in desires that are unobserved Signup and view all the answers

What is latent customer heterogeneity?

The potential differences in customer desires that are unobserved Signup and view all the answers

What are the inputs to managing customer heterogeneity?

Potential customers, the company's strengths and weaknesses, and competitors' strengths and weaknesses Signup and view all the answers

What are the inputs to managing customer heterogeneity?

Potential customers, the company's strengths and weaknesses, and competitors' strengths and weaknesses Signup and view all the answers

What are the outputs of managing customer heterogeneity?

Industry segmentation, target segmentation, and positioning statements Signup and view all the answers

What are the outputs of managing customer heterogeneity?

Industry segmentation, target segmentation, and positioning statements Signup and view all the answers

What is the process for managing customer heterogeneity?

Segmenting, targeting, positioning, and building customer centricity Signup and view all the answers

What is the process for managing customer heterogeneity?

Segmenting, targeting, positioning, and building customer centricity Signup and view all the answers

What tools are used to assess strategic marketing decisions?

SWOT analysis and 3C analysis Signup and view all the answers

What are SWOT analysis and 3C analysis used for?

Assessing strategic marketing decisions Signup and view all the answers

What is industry segmentation?

Describing industry segments and potential demand opportunities Signup and view all the answers

What is industry segmentation?

Describing industry segments and potential demand opportunities Signup and view all the answers

What is the ideal target segment?

A segment that meets six criteria, including sustainability and financial value Signup and view all the answers

What is the GE matrix?

A tool for visualizing and selecting target segments Signup and view all the answers

What is a positioning statement?

A statement that encapsulates who the firm should target, what needs and benefits are being fulfilled, and why the offering provides a relative advantage over competitors' offerings Signup and view all the answers

What is positioning?

Improving relative advantage in the minds of targeted customers Signup and view all the answers

Study Notes

Customer heterogeneity refers to the differences among customers.
There are five sources of customer heterogeneity: individual differences, life experiences, functional needs, self-identity/image, and marketing activities.
Latent customer heterogeneity refers to potential differences in desires that are unobserved.
Inputs to managing customer heterogeneity include potential customers, the company's strengths and weaknesses, and competitors' strengths and weaknesses.
Outputs of managing customer heterogeneity include industry segmentation, target segmentation, and positioning statements.
The process for managing customer heterogeneity includes segmenting, targeting, positioning, and building customer centricity.
SWOT analysis and 3C analysis are used to assess strategic marketing decisions.
Industry segmentation describes industry segments and potential demand opportunities.
Target segmentation moves from the overall market landscape to specific segments of interest.
Positioning statements encapsulate who the firm should target, what needs and benefits are being fulfilled, and why the offering provides a relative advantage over competitors' offerings.

Intel is reorganizing into five market-focused units.
Firms are shifting towards a customer-centric structure.
There are three eras of managing customer heterogeneity: mass marketing, niche marketing, and one-to-one marketing.
Segmenting, targeting, and positioning (STP) approach is used to match heterogeneous customer needs.
Segmenting involves dividing the market into groups of customers with similar needs.
Cluster analysis is a data-driven partitioning technique to identify and classify customers into homogeneous segments.
Cluster analysis involves segmenting and describing using bases and descriptors.
The validity of segmentation results should consider identifiability, stability, responsiveness, and viability.
Hierarchical clustering procedure and K-means are approaches to enable cluster analysis.
Cluster analysis can be used to improve customer satisfaction and design more efficient targeting strategies.
Targeting involves selecting market segments based on attractiveness and competitive strength.
An ideal target segment meets six criteria, including sustainability and financial value.
The GE matrix is a tool for visualizing and selecting target segments.
Positioning is the process of improving relative advantage in the minds of targeted customers.
Perceptual maps are an analysis tool for aiding in positioning decisions.
Repositioning is the process of shifting a firm's target market.
A positioning statement must address three key questions: who are the customers, what needs does the product fulfill, and why is it the best option?
Factor analysis is a data reduction technique used to identify latent factors that explain variation in a large number of observed variables.
Exploratory and confirmatory factor analysis are two types of factor analysis.
User-generated content can be used to derive perceptual maps and brand positioning.

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Description

Are you interested in marketing and understanding your customers better? Take this quiz to test your knowledge on managing customer heterogeneity, industry segmentation, target segmentation, and positioning statements. Learn about the different eras of marketing, cluster analysis, ideal target segments, and the process of improving relative advantage in the minds of targeted customers. Brush up on your skills and become an expert in understanding your customers to improve customer satisfaction and design more efficient targeting strategies.