Question 1

Companies that engage in car-sharing rely more on new car technology than demographics in making their marketing decisions.

Accepted Answer

Analysts and researchers for these companies look at the numbers of drivers in metropolitan centers who might use car sharing.

Question 2

Hertz and Enterprise are developing their own car-sharing initiative because they perceive Zipcar as a potential competitor.

Accepted Answer

Hertz and Enterprise are both developing their own car-sharing initiatives as they view Zipcar as a potential competitor in the market.

Question 3

Which demographic group would respond the most positively to an extensive social media campaign,particularly one that allows them to make or extend reservations using their Smartphone?

Accepted Answer

Market research has determined that Gen Yers are the most tech-savvy generation,and they expect brands to be on the internet.

Question 4

U.S.consumers rank certain characteristics as important to the quality of a product or service.Which of these characteristics would rank as the most important for a car sharer who wants a car on-demand most of all?

Accepted Answer

For car-sharing firms,the target market are people who no longer view car ownership as a status symbol but rather focus on the convenience and practicality issues.

Question 5

Carmakers are getting into the car-sharing business because fewer people can afford their cars.They don't have the purchasing power.

Accepted Answer

The target market actually does have money.These are young,well-educated drivers,roughly age 18 to mid-30s,with good salaries.

Question 6

For car sharing to work,a company needs to invest in special kinds of __________ to ensure the security and condition of its vehicles.

Accepted Answer

When Daimler car2go vehicles use such technology,it is an example of how creative organizations are willing to invest and innovate to pursue a calculated risk.

Question 7

Car-sharing differs from traditional car rental,which costs more,in that the rental period can be by the hour and as needed.Which of the following market factors might convince more people to use this service on a long-term basis?

Accepted Answer

Uncertain economic times have caused many consumers to shift less expensive alternatives.

Question 8

Do luxury carmakers getting into the car-sharing business see their target markets as just renting out the cachet of their cars to fit a component lifestyle?

Accepted Answer

A component lifestyle can mean renting a luxury car for a specific purpose.But carmakers such as BMW are developing brand connections and see temporary users of their cars as potential buyers.

Question 9

All of the following are target markets for car sharing except __________.

Accepted Answer

Discretionary income is money to spend on nonessential items.The temporary need of a car is first and foremost essential.

Question 10

The falling number of people who no longer see the value of owning a car as necessary for their lifestyle is a __________ variable.

Accepted Answer

Social factors include attitudes,values,and decisions affecting lifestyle.

Quiz 8: Case Study Daimler/BMW: A New Breed of Driver