Answer:
Although teenagers do not have the income of older consumers, they are still an
attractive marked based on income. Why?
A) Because they have less money, they are more careful of how they spend it.
B) Parents lead the teenagers into what they buy; hence any understanding of adult
buying patterns can be useful for teenagers as well.
C) Teenagers have more consumer confidence and are, therefore, more likely to be
swayed by promotional material.
D) Teenagers don’t have the income of adults, but it’s almost all discretionary, meaning
that they can spend it as they see fit.
Answer:
Pepsi A.M. was positioned as a coffee substitute. In one test market, Pepsi A.M. was
introduced onto a university campus. It was both an immense hit and a total failure. The
product always sold out in vending machines, but the consumption of coffee stayed the
same and the sale of other Pepsi products declined. In terms of levels of categorization,
discuss what created the problem in the test market.
Answer: