Scenario 4-5
Jay and Carrie Garrett operate a small retail store in a college town that sells only house plants and accessories called The Plantatarium. Their initial feeling when they went into business was that virtually everyone was a potential customer for house plants. Subsequent market research conducted for them painted a different picture. This research identified three particularly strong market segments. The first was college students ages 18-24. The next segment was retired seniors ages 65-80. The third segment was professional offices for doctors, accountants, and lawyers. The college students liked houseplants because they dressed up their living spaces. The senior liked them because they became the focus of a hobby. The professionals did not buy them for any other reason than décor.
-(Scenario 4-5) In order to capture the ____ in the market, the Plantatarium offers a punch card that rewards buyers with a $10.00 discount each time they have purchased over $150.00 of plants from the store.

Question

Quizplus · Accepted Answer

The Plantatarium is targeting heavy users in the market by offering a punch card that rewards buyers with a discount each time they purchase over a certain amount. This type of promotion encourages repeat business and is most effective with heavy users who make frequent and/or large purchases.

Scenario 4-5 Jay and Carrie Garrett Operate a Small Retail Store in Store