Mercedes-Benz: Daimler AG, the maker of Mercedes-Benz automobiles, is planning to launch a new line of downsized luxury vehicles in the United States by 2012. Daimler has experienced a recent drop in global sales attributed to its product mix that focuses on larger luxury automobiles.
With increasing fuel prices and stricter U.S. fuel-economy standards coming down the pipeline, Daimler doesn't want to be left behind. Daimler is behind its competition, though. Its German rivals, Audi and BMW, have been relatively successful in the United States. BMW's Mini Cooper, demanding as much as $34,000, has already driven away with some of Daimler's potential sales. While Daimler already offers the Smart car in the United States, the new offerings will not be going after the same consumers.
- Refer to Mercedes-Benz. Baby boomers have money to burn and will be the primary target for the downsized luxury vehicles offered by Mercedes. Many of them will want this type of car to feel young again. This group is considered a(n):
a. consumer advocacy group
b. income-ready group
c. market
d. population
e. market maven
ANSWER: c
- Refer to Mercedes-Benz. Mercedes-Benz's baby boomers are a useful segment because they meet certain criteria. Which of the following is not one of those criteria?
a. Substantiality
b. Identifiability and measurability
c. Accessibility
d. Responsiveness
e. Niche creativity
ANSWER: e
- Refer to Mercedes-Benz. Daimler plans to introduce the downsized luxury vehicles in major U.S. cities, such as Los Angeles, New York, Miami, Atlanta, Dallas, and Chicago because market research has shown that these metropolitan areas have the greatest potential with respect to the consumers able to purchase a $30,000+ smaller luxury vehicle. Which type of psychographic segmentation does this represent?
a. Geodemographic
b. Personality
c. Benefit
d. Usage rate
e. Demographic
ANSWER: a
- Refer to MercedesBenz. One potential problem is that some of the purchasers of Daimler's downsized luxury vehicles could be consumers who would have purchased a larger, higher-priced Mercedes-Benz. This situation is called:
a. subjugation
b. cannibalization
c. sabotage
d. benefit transference
e. marginal sales
ANSWER: b
- Refer to Mercedes-Benz. Which positioning base will Daimler be using if the company emphasizes the type of people who buy Mercedes-Benz automobiles in its promotional efforts?
a. Product user
b. Emotion
c. Price and quality
d. Attribute
e. Use or application
ANSWER: a