CASE STUDY QUESTIONS Employee Wages vs. Compensation Paid to an Independent Cont

Question

CASE STUDY QUESTIONS Employee Wages vs. Compensation Paid to an Independent Contractor, Finding and Analyzing the Relevant Code Sections and Regulations and a Relevant Case Facts: Your client, Denver Language School (which will be referred to as "DLS"), is a school that is just starting operating. DLS is located in Denver, Colorado, and will special- ize in teaching its students foreign languages. Jack Lundquist is a Spanish professor. Jack has agreed to teach online Spanish courses as an adjunct professor at DLS. DLS and Jack have agreed that Jack will teach approximately 6 to 10 11.1

Explanation / Answer

Market segmentation is the process of dividing a wide base of consumers(both existing and potential) into smaller, homogenous groups based on certain shared characteristics. These chcarteristics could be age, income level, taste and preferences, gender, socio-cultural background, location etc. Such segmentation helps the company to target a specific consumer market and create a product offering accordingly. The different types of market segmentation includes:

1. Demographic Segmentation: This includes segmentation based on age, gender, family size,income, occupation, religion, ethnicity. Some examples of demographic segmentation are:

a. Johnson and Johnson's consumer healthcare- They segmented their customers on the basis of age group and offered a wide range of babycare products in the name of Johnson's baby

b.High-end automobile company (BMW,Mercedes) : They cater to high income segment only by offering luxury cars.

2. Geographic Segmentation: This type of segmentation is based on the location of the consumers and the geography from which they operate. It could be in the form of rural-urban segmentation, intra-country or inetr-countries segmentation amongst other types. An example of geographic segmentation could be Mcdonalds which offers different menu for different geograohies, based on local preferences. For example, the Indian menu of Mcdonalds doesn't offer beef.

3. Behavioral Segmentation: This type of segmentation is done on the basis of consumer behavior, purchase pattern, decision making. Say for example people spend more during festive seasons and prefer delaying some of their purchases till Christmas, new year for getting good discounts.

4. Psychographic Segmentation: Psychographic segmentation is similar to behavioral segmentation.It categorises consumers on the basis of their lifestyles, activities, interests, opinions amongst ceryain other psychological aspects. For example certain tobacco products like cigrettes cater to smokers. Products like Chobani yoghurts cater to health-conscious population. The consumption of these products is based on the lifestyle of consumers.

Segmentation helps in targeting the products to specific consumers. It is an important marketing tool and helps to customize product offering according to the needs of the consumers.

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