Answered step by step
Verified Expert Solution
Question
1 Approved Answer
13. Sizing a segment A car manufacturer commissions a market research firm to create a market segmentation scheme for the new car market. The market
13. Sizing a segment A car manufacturer commissions a market research firm to create a market segmentation scheme for the new car market. The market research firm collects a sample of 300 customers who intend to buy a new car within the next year and creates the segmentation scheme using principal component analysis based on their income, agef driving habits, and various personality.r characteristics. The car manufacturer believes the scheme is very usable for their target marketing programs and believes their product line is ideally suited for one particular segment the rm identied. That one particular segment is code-named the "Must Haves." "he market research firm provides a 95% confidence interval estimator on the proportion of the market who is classified into the Must Haves segment. This interval estimator is 0.16 i: 0.04. "he number of customers in the market research firm's sample who were classified as a Must Have is V "here are 160,000 customers who intend to buy a new car within the next year in the area of the countrv where the car manufacturer intends to run their target marketing campaign. This means with 95% confidence that there are between LCL = V and UCL = 7 customers who would be classified as a Must Have in that particular area of the countrv
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started