Question

Australia-based Renewable Energy Ltd. sells a $10 million device that converts manure into energy. One of these devices is capable of generating energy equal to $2 million of natural gas per year. The company believes its target market consists of businesses that use a lot of energy like its first customer, a fertilizer manufacturer that was located in a rural area. If the firm decides to expand to the U.S., it most likely will use which of the following strategies to segment its market?
a.behavioral and geographic
b.number of employees and behavioral
c.purchase location and purchase type
d.NAICS code and geographic
e.behavioral and NAICS code

Answer 1

Answer:

a.behavioral and geographic

Explanation:

If the firm decides to exand to the US, it will likely use the following strategies to segment its market:

Behavioral segmentation is about dividing the market in groups that show similar buying behaviors. For example, a parameter used in behavioral segmentation is usage oriented where you group the market based on how much they use the product, which is what the company did in this case as it thinks that its target market consists of businesses that use a lot of energy.

Geographic segmentation is when a company divides its market based on the place the customers are located. In this case, the company is likely to use this strategy to segment the market because it thinks that the target market consists of businesses similar to its first customer that was located in a rural area.

Answer 2

Answer:

Behavioral and geographic ( A )

Explanation:

An Australia-based Renewable company wanting to expand its service Abroad based on the success of it business activities which were based on the buying buying of its customers and also the geographic location of its existing customers.

The Behavioral pattern of purchasing companies involves the Rate,pattern and the type of business they are involved in which purchasing companies are involved with.

Geographic pattern of purchasing companies involves the location of the companies involved in the purchasing of the products of the Australia-based Renewable Energy ltd.hence the company will base its relocation of its business to America, will be based on Geographic and Behavioral pattern.