List the types of potential segmenting dimensions, and explain which you could try to apply first, second and third in a particular situation. If the of nature of the situation would affect your answer. Explain why

The price elasticity of demand for cigarettes is estimated to be (-.4) and the income elasticity is about (+5).

a- Suppose the government impose a tax on cigarettes so the price rises by 10%. Estimate the effect this price increase will have on cigarettes consumption and consumer spending on cigarettes. (both in percentage terms)

When it comes to segmenting dimensions, there are several types to consider. The choice of which one to apply first, second, and third in a particular situation depends on the nature of that situation. Below are some potential segmenting dimensions and their potential application order:

1. Demographic Segmentation: This type of segmentation divides a market based on demographic variables, such as age, gender, income, education, occupation, etc. Demographic segmentation can often be a good starting point in many situations, as it provides a basic understanding of the target market's characteristics.

2. Geographic Segmentation: Geographic segmentation categorizes a market based on geographical boundaries, like countries, regions, cities, or rural/urban areas. If the situation involves different regions or geographic locations with diverse needs and preferences, geographic segmentation could be applied second to further refine the market segments.

3. Psychographic Segmentation: Psychographic segmentation groups consumers based on their lifestyles, personality traits, values, interests, opinions, etc. It considers the psychological factors that influence consumer behavior. If the situation involves understanding the motivations and psychological drivers behind consumer choices, psychographic segmentation could be applied third to gain deeper insights into the target market.

The nature of the situation will indeed influence the order of application. For instance:

a) If the situation involves launching a new product targeting a specific age group, it would be logical to start with demographic segmentation to identify the age range most likely to be interested in the product. Then, geographic segmentation could be applied to analyze the regions where the target age group is concentrated, followed by psychographic segmentation to understand the lifestyle preferences and values of the identified segments.

b) On the other hand, if the situation involves expanding a business into new geographic markets, starting with geographic segmentation would be more appropriate. This would help identify different regions with varying needs and preferences, followed by demographic segmentation to understand the characteristics of the target market within those regions. Lastly, psychographic segmentation could be applied to gain insight into the psychological factors that influence consumer behavior in those specific geographic markets.

In summary, the choice of segmenting dimensions and their application order depends on the particular situation, and how each dimension can provide the most relevant insights to understand and target the market effectively.

When it comes to market segmentation, there are several potential dimensions that can be used to divide a target audience into distinct groups. These dimensions can include geographic, demographic, psychographic, and behavioral factors. Let's explore each of them and consider their application order based on the nature of the situation.

1. Geographic Segmentation: This type of segmentation divides the market based on the physical location of customers. It could include factors such as country, region, climate, urban or rural areas, etc. This dimension could be a good starting point in most situations since it provides a broad understanding of customers' preferences and needs based on their geographical location.

2. Demographic Segmentation: Demographics focus on socio-economic characteristics of customers, including age, gender, income, education, occupation, family size, and marital status. Depending on the nature of the situation, demographic segmentation could be applied second. For example, in cases where the product or service has a clear target age group or gender-specific appeal, demographic segmentation may take precedence over other dimensions.

3. Psychographic Segmentation: Psychographics analyze customers' lifestyles, values, interests, attitudes, and personalities. This dimension digs deeper into customers' motivations, preferences, and behaviors. In certain situations, such as when marketing a luxury product or targeting specific consumer personas with distinct lifestyles, psychographic segmentation could be applied third. By understanding customers' psychographics, businesses can create more relevant marketing messages and tailor their offerings accordingly.

However, it is essential to note that the order of applying these segmentation dimensions can vary based on the nature of the situation. The answer depends on various factors, such as the product or service being offered, the industry, and the intended target audience. For example:

- If you are marketing a new sunscreen in a beach resort area, starting with geographic segmentation based on climate and region could be crucial. Understanding the specific needs of customers in that area would drive targeted marketing efforts.

- On the other hand, if you are launching a new toy line targeting children, demographic segmentation based on age and gender could be applied first. This approach allows you to tailor your marketing campaigns and product features to specific age groups or gender preferences.

- In situations where you are promoting an environmentally-friendly product to eco-conscious consumers, psychographic segmentation may be the primary focus. Identifying customers who align with specific green values and lifestyle choices helps create effective messaging and channels for reaching them.

In summary, the nature of the situation, including the product, industry, and target audience, can influence the choice and order of market segmentation dimensions. Considering the context and objectives of the marketing effort is essential to determine which dimensions to apply first, second, and third in a particular situation.