Question
You were getting ready for your Markstrat team meeting and had jotted down the following information from the Multidimensional Scaling report. Economy Performance Convenience Coordinates
You were getting ready for your Markstrat team meeting and had jotted down the following information from the Multidimensional Scaling report.
| Economy | Performance | Convenience |
Coordinates for brand position on the perceptual map (A) | |||
Brand X | -15.5 | 14.3 | 5.2 |
Brand Y | -15.7 | 13.8 | 5.7 |
Brand Z | -15.7 | 14.3 | 5.7 |
Coordinates for consumer segment ideal point on the perceptual map (B) | |||
Professionals | -17.2 | 15 | 6.4 |
Distance between brand position and consumer segment ideal point (B A) | |||
Brand X | -1.7 | 0.7 | 1.2 |
Brand Y | -1.5 | 1.2 | 0.7 |
Brand Z | -1.5 | 0.7 | 0.7 |
You had also noted the brand awareness and purchase intentions in the Professionals segment for brands X and Y. But in your hurry, you had noted only the brand awareness for brand Z and had omitted the purchase intentions.
Professionals Segment | Brand Awareness | Purchase Intentions |
Brand X | 60% | 20% |
Brand Y | 60% | 25% |
Brand Z | 60% | ??? |
Given the above information, state whether the following statements are TRUE or FALSE, and clearly explain why. (The following 4 questions are based on the above each question is worth 1.5 points out of which 1 point each is for explanation).
- The purchase intentions for Brand Z in the Professionals segment must be more than 25%.
- All else remaining unchanged, the purchase intentions for Brand Y in the Professional segment will not be affected if the location of Brand X on the Convenience dimension changed from 5.2 to 5.5.
- All else remaining unchanged, decreasing the price of Brand X should increase the total brand contribution from the Professional segment. Note that price and the economy dimension are negatively correlated.
- All else remaining unchanged, if the location of Brand X was changed to 13.8 on Performance, and 4.7 on Convenience, then its purchase intentions should increase.
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