Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Economics 1.B. ABC Company is one of the largest e-commerce companies in Indonesia. One of the advantages of this company is the wide range of

image text in transcribed
image text in transcribed
Economics 1.B. ABC Company is one of the largest e-commerce companies in Indonesia. One of the advantages of this company is the wide range of product categories offered on its website, ranging from daily necessities, fashion products, skincare and personal care. The marketing manager of ABC company realized that currently, the promotional costs incurred by the company were too large. There needs to be efficiency in this cost so that the company's margins are maintained. For this reason, the marketing manager intends to reduce promotional activities for segments that are considered less profitable by the company. For that, the company must first know the segments that are consumers of the company. For this reason, research was conducted to group consumers into segments to make it easier for companies to understand and analyze. This grouping is done based on several criteria, namely age, income and spending. Based on the research that has been done, the following results were obtained: Segment 1 consists of consumers with an average age of 32 years, has a relatively high annual income compared to other segments and the highest spending score compared to other segments Segment 2 consists of consumers with an average age of 41 years, has a relatively high annual income compared to other segments but the lowest spending score compared to other segments . Segment 3 consists of young consumers, with an average age of 25 years, having the lowest annual income compared to other segments, but the 2nd highest spending score among all segments . Segment 4 is the segment with the largest number of members, has an average age of 28, medium annual income and also medium spending score From the results of this study, ABC company decided to focus on segments 1 and 3 because they are considered the most potential when compared to the other 2 segments. Therefore, in the future, the promotional budget will be allocated more for segments 1 and 3, while the promotional budget for segments 2 and 4 will be reduced. I. Based on the narration that has been given, explain whether the approach taken is included in the multivariate dependence or multivariate interdependence approach and state the name of the analysis (5 points) li. Identify what variables are in this model. If the approach used is multivariate dependence, identify which are the independent variables and which are the dependent variables (if the approach used is multivariate interdependence, you can simply state what variables are in the narrative). (5 Points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

E-Commerce 2013 Business Technology Society

Authors: Ken Laudon, Kenneth C Laudon

9th Edition

0132730359, 978-0132730358

More Books

Students also viewed these Economics questions

Question

PITI is a one-time initial cost of homeownership? True or false

Answered: 1 week ago