Mini Case 9- 1
A group of investors are thinking of starting a for- profit institution to be called Heaven University. They have identified a small segment of society that is displeased with the high cost of HECS or upfront fees and is willing to forego all social and sporting extracurricular activities in order to get an inexpensive, quality education in three years. The university investors will advertise nationally. Its target audience is individuals between 18- 40 years of age, who have either never undertaken a University degree or who failed to complete a degree commenced within the last ten years. The investors want to attract students who are currently working at a job with which they are dissatisfied. Heaven will only offer three degree programmes, which cannot be modified to individual student needs. Research has shown that these are degrees that this market segment repeatedly seeks. Students can earn their degrees over the Internet and only have to attend a one- week seminar on campus twice a year.
-Refer to Mini Case 9- 1. The investors have identified their market through the use of segmentation variables.
A) psychographic and behavioural
B) psychographic, behavioural, and geographic
C) geographic and demographic
D) demographic, psychographic, and behavioural
E) behavioural, geographic, and demographic

Question

Quizplus · Accepted Answer

The investors have used demographic variables (age and education history), psychographic variables (dissatisfaction with current job), and behavioural variables (willingness to forego extracurricular activities and earn degree over the Internet) to identify their market segment. Therefore, the best choice is D, which includes all three types of variables.