Name: Tran Ly

Pledge _______ Date: 10/1/2015

______ of 40 Points
______ %
Quiz Hilton Hotels Case & Rediscovering Segmentation

1. (1 Pt.) Define RevPar:

Revenue per Available Room (RevPAR) measures the room revenue produced by the
property divided by the number of rooms it had available for sale during a given
period of time.
2. (1 Pt.) What does RevPar Index measure?
It measures brand competitiveness in the lodging industry. (Computed by comparing
an individual brands RevPAR against that of the competitive set).
3. (1 Pt.) Which two Hilton brands gained the most value from the OnQ system?
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4. (2 Pts.) Who are Hiltons:
a. (1 Pt.) Primary Customers? Real Estate owner, franchisees
b. (1 Pt.) Secondary Customers? Hotel guests
5. (1 Pt.) Why did Hilton decide to fund the CRM infrastructure directly without
extracting a development fee from franchisees? They focused on the goal of driving
profitability and want to reduce costs and improve revenues for the real estate
owners.
6. (1 Pt.) What is the simple equation for ROI? (Gain on Investment Cost of
Investment)/Cost of Investment
Rediscovering Market Segmentation
1. (1 Pt.) What is conjoint analysis?
Conjoint analysis is a statistical technique used in market research to determine how
people value different attributes (feature, function, benefits) that make up an individual
product or service.
2. (1 Pt.) Describe how conjoint analysis is done?
Present consumers with combination of features, then ask consumers how willing they
are to purchase the product if particular attributes were added or removed, or if the price
changed.
3. (3 Pts.) Revealing and applicable segmentation should do three things
a. Reflect the companys strategy; Indicate sources of revenue or profit
b. Identify consumers values, attitudes, and beliefs as they relate specifically
to a product or service offerings

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c. Focus on actual customer behavior; accommodate or anticipate changes in

markets or consumers behavior

4. (2 Pts.) Segmentations should be dynamic (change with circumstances) in two ways

a. Concentrate on consumers needs, attitudes, and behavior, which are very
dynamic, rather than on personality traits
b. Reshaped by market conditions, such as fluctuating economics, emerging
consumer niches, and new technologies
Chapter 8 - Segmentation
1. (1 Pt.) A market segment consists of a group of customers who share a similar set of
needs and wants.
2. (3 Pts.) Target marketing includes what three activities?
a. Market segmentation
b. Market targetting
c. Market positioning
3. (3 Pts.) The major segmentation variables for consumer markets are:
a. Geographic
b. Demographic
c. Psychographic
d. (Behavioral )
4. (1 Pt.) In grassroots marketing, activities concentrate on getting as close and
personally relevant to individual customers as possible.
5. (1 Pt.) Life stage defines a persons major concern (for example: divorce, buying a
new home)
6. (5 Pts.) What are the five criteria of rating segments?
a. Measurable
b. Substantial
c. Accessible
d. Differentiable
e. Actionable
7. (4 Pts.) We can target markets at four main levels:
a. Mass
b. Multiple segments
c. Single (or Niche) Segment
d. Individuals

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8. (1 Pt.) In undifferentiated or mass marketing, firm ignores segment differences and

goes after the whole market with one offer.

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9. (7 Pts.) Describe each action step in the segmentation process (7.4) and why it is
important.
You want to deliver the right value to the right customers.
a. Needs Based Segmentation: Group customers into segments based on similar
needs and benefits sought by customers to solve a particular consumption
problem.
b. Segment identification: For each needs-based segment, determine which
demographics, lifestyles, and usage behaviors make the segment distinct and
identifiable actionable
c. Segment Attractiveness: Using predetermined segment attractiveness criteria
(such as market growth, competitive intensity, and market access), determine the
overall attractiveness of each segment.
d. Segment Profitability: determine how profitable segment is
e. Segment Positioning: For each segment, create a value proposition and
product-price positioning strategy based on that segments unique customer
needs and characteristics
f.

Segment Acid Test: Create segment storyboard to test the attractiveness of

each segments positioning strategy.

g. Marketing Mix Strategy: Expand segment positioning strategy to include all

aspects of the marketing mix: product, price, promotion, and place.

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