23

Suppose you work for a company that sells cosmetics. They have identified their

target segment and would like to promote the new cosmetics brand to these target

segment by influencing the relevant Associative reference groups the target

customers belong to.

Assume that you have identified two associative reference groups that are relevant

for the target customer segment:

Reference Group A is characterised by high degree of contact, high homophily, and

high degree of identification.

Reference Group B is characterised by low degree of contact, low homophily, and

low degree of identification.

23a)

Which of the two associative reference groups above would you choose to

approach? Justify your choice by explaining what each of the above three reference

group characteristics means and whether and why high vs. low level of that

characteristic is preferred.

23b)

The cosmetics company is looking to further segment the market based on values.

Identify two (2) consumer values relevant for the cosmetics market. Then, describe

briefly two distinct market segments (one for each of the consumer values you have

selected) that the cosmetics company could target. Describe some of the key

product attributes that customers in each of these two market segments are likely

to seek.