Question

• A firm preparing to introduce a new deodorant has learned that more competitors are offering products formulated for women than men. This finding most likely emerged during the ________ step of the firm’s STP process.

		Positioning
		Segmentation
		Targeting
		Selection

• three-day pass to Disney World in the United States costs $169 per day, or $99 per day for a five-day pass. Which of the following price customization tool is Disney using?

		Controlling availability
		Setting prices based upon buyer characteristic
		Managing product-line offerings
		Setting prices based upon transaction characteristicsSetting prices based upon transaction characteristics

Answer 1

Q A firm preparing to introduce a new deodorant has learned that more competitors are offering products formulated for women than men. This finding most likely emerged during the ________ step of the firm’s STP process.

Ans Segementation (Option 2)

Reason - Segmentation helps to understand market diversity and helps in identifying potential target markets.

Segmentation has 4 types - Demographics, Behavioural, Psychographic & geographic.

Here the study on Demographics segmentation (Gender) has yielded that more competitors are offering products formulated for women than men.

Other options are the steps that follow segmentation and are not apt answers.

So, Option 2 is the correct answer.

Q three-day pass to Disney World in the United States costs $169 per day or $99 per day for a five-day pass. Which of the following price customization tool is Disney using?

Ans Setting prices based upon buyer characteristic (option 2)

Reason - This pricing strategy that Disney is using is based on the buyer's behavior towards selecting an option and the perceived value. Almost all buyers look to get maximum value for the paid amount and getting a 5-day pass at $99 per day makes it look like a greater value when compared to a 3-day pass at $169 per day.

The other options

Controlling availability is focused on making the product available to the customer

Managing product-line offerings is focussed on the overall product line sold with the Disney world.

Setting price based on transaction characteristics is portrayed by setting $99 per day for a 5-day pass, this price is achieved by transaction characteristics but the influence on the sale is achieved by setting price choices based on buyer characteristics

and hence option 2 is the correct answer