Question

Bethany Bravo is part of the marketing department at Spa​ Luxury, a​ mid-sized chain of​ full-service day spas located throughout the U.S. and Europe. Bethany spends much of her time each day learning about her​ company's customers, from analyzing​ customers' comments and ratings on Spa Luxury surveys to interacting with customers at one of the​ company's many spas. Informed by her​ research, Bethany has created several suggestions for customer packages that meet the desires of the​ company's most loyal customers as well as packages aimed at attracting and keeping customers who come to Spa Luxury only occasionally. Bethany is preparing to present these suggestions to management.

a) Bethany is engaged in Market Segmentation.
b) Bethany is focused on Customer Relationship Management.
c) Bethany is implementing a Product Differentiation strategy.
d) Bethany is practicing Target Marketing.

Answer 1

Bethany Bravo is utilizing market segmentation at Spa Luxury by analyzing customer feedback to create tailored service packages for different customer groups. Her suggestions to management are a part of customer relationship management efforts and target marketing, aimed at attracting and retaining customers.

Step-by-step explanation:

Bethany Bravo's work at Spa Luxury involves analyzing customer feedback and interacting with customers to inform her on how to create appealing service packages. As she is tailoring these packages to cater to the preferences of different customer groups, such as the company's loyal customers and occasional visitors, Bethany is engaged in market segmentation. This approach allows a company to divide its customers into distinct groups based on various characteristics like the frequency of visits, preferences, and spending habits, so as to provide more targeted and personalized services.

When Bethany prepares suggestions for management regarding these new customer packages, her goal is to meet specific customer needs more effectively and to enhance customer satisfaction and loyalty. This strategy aligns with the practices of customer relationship management (CRM). The tailored packages serve as an instrument for CRM by seeking to build long-term relationships with various customer segments.

Furthermore, since she is also proposing packages aimed at attracting occasional customers, Bethany is also practicing target marketing. This allows Spa Luxury to design marketing strategies that resonate with specific segments, thereby increasing the likelihood of converting occasional customers into regular ones.