NeedsBased Segmentation Figure 53 A Using the laptop produ

Needs-Based Segmentation ( Figure 5-3 )

A. Using the laptop product-price configuration provided, create a needs-basedsegment for laptop users who have home businesses and work on their laptops 4 to 6 hours a day, including while on out-of-town business trips.

B. Next, using the laptop product-price configuration provided, create a needsbased segment for a high school student with a limited budget who wants to buy a laptop for school assignments,
e-mail, and entertainment.

FIGURE 5-3 CUSTOMER PREFERENCES FOR FEATURES VERSUS PRICE Product Features Level 1 Level 2 Level 3 Processor Speed (MHz) 1.5X 2X Cost Adjustment $0 $150 $300 Memory (GB) 2X 4X Cost Adjustment $100 $0 $100 $300 -$100 $100 Hard Drive (GB) 2X 3X Hard Drte -$50 Media DrMa -$50 $100 Cost Adjustment $50 $0 $50 $100 Operating System -$50 Carrying Case Media Drive CD-ROM DVD DVD+RW Warranty Total Price $550 $1,550 Cost Adjustment $50 $0 $100 Operating System Basic Plus Pro Cost Adjustment $0 $50 $100 Carrying Case Nylon Leather None Cost Adjustment $50 $0 $50 90 Days 3 Years Warranty 1 Year Cost Adjustment $0 $25 $50 Given this set of features and prices, there are 6,561 Price $800 possible product-price configurations Base Price $0 The right one for any given customer will depend on Cost Adjustment $800 the customer\'s needs and price preference. Price to be Paid

Solution

Ans.

A. Needs-based segment for home users: Since they need to use laptops more and they may open multiple tasks at a time, therefore they need a fast processor and durable battery.
Configuration: Processor speed: 2x, memory: 4x, hard drive: 2x, media - DVD, OS - Pro, Carrying case - Leather, Warranty - 3 yrs.

B. Needs-based segment for students: Since they need to use laptops less and just for assignment purposes, therefore they need a reasonable processor and an affordable one too.
Configuration: Processor speed: 1.5x, memory: 2x, hard drive: 1x, media - DVD, OS - Basic, Carrying case - None, Warranty - 2 yrs.