Question

As Marketing Manager, before you can identify the meaningful segmentation variables, you need to know a little more about the Sauber washer-dryer. The All-in-One washer-dryer combo does it all in one machine -- without taking up a lot of space. Just place the dirty laundry in the front-loading machine and when you return, it's washed and dried. Even more impressive is its ability to clean; whites were 20% cleaner with 15% fewer stains as compared to competing models. The machine measures just 22" across and 34" high, which is 10% smaller than competing models. However, this means it holds a smaller load by U.S. standards. And unlike traditional dryers, the All-in-One does not require outside exhaust venting.

Sauber's washer-dryer is available in four stylish finishes: stainless steel, pearl white, gunite gray, and obsidian. Although the cycle time is 20% longer than average, the machine runs quietly and offers 10 wash, 5 spin, and 8 dry options. A programmable timer allows users to program a wash up to 23 hours in advance. The manufacturer's suggested retail price is $1499, which is more expensive than U.S. brands' washer-dryer combinations, which average around $1000.

Choose the two variables that would be most predictive of purchase intent for the All-in-One washer-dryer.

-Religious orientation: beliefs and worship

-Household size: how many people?

-Dwelling type: apartment, condo, or house?

Answer 1

The two variables that would be most predictive of purchase intent for the dryer by households are:

1. Household size: Since the dryer costs almost 50% more than the average dryer, and can wash more clothes than the average ones, it depends on the size of the household whether it is worthwhile for them to purchase it. A two person household might not find it worthwhile to invest this much money in a dryer since their requirement is less, however a joint family with 6-7 people would find it worthwhile.

2. Dwelling size: The size of the dwelling also plays an important role whether the dryer would fit in their houses. Large houses dont have to think much before buying whereas small size dwellings have to think twice.

These two variables help in determining whether dryers would be bought