During a job interview with a small startup firm, you were asked to recommend a

Question

During a job interview with a small startup firm, you were asked to recommend a tool that would help the company determine which variables to use in segmenting its consumer market. You were told that the firm has collected a lot of data about household demographic characteristics, lifestyle characteristics, and buying behavior. Reflecting on the interview afterward, you don't remember exactly what you said and hope everything was accurate. Select the correct statement(s) you should have made. PRIZM is a powerful tool for determining which segmentation variables to use, but it is primarily used in business markets. The Delphi technique is a powerful tool for determining which segmentation variables to use. PRIZM is a powerful tool for determining which segmentation variables to use, but it is available only to large corporations. Regression analysis is a powerful tool for determining which segmentation variables to use. PRIZM is a powerful tool for determining which segmentation variables to use, and this firm is clearly interested in the types of data PRIZM combines.

Explanation / Answer

PRIZM is Potential Rating Index for Zip Markets. It is considered as a standard tool to study market segmentation for product development and product placement. However, the applicability of PRIZM tool is usually in the business markets and geodemographic segments.

So, the statement “PRIZM is a powerful tool for determining which segmentation variables to use, but it is primarily used in business markets” is True and relevant

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