Corpus Electronics: Decision to Segment the Market for Convergence Products
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Code : MRS0005
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Region : :Europe |
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Definition of Convergence The dictionary meaning of the word “convergence” varies from “the act of synergistically coming together” to “contraction” to “similarity of form and structure.” In an era where media fragmentation, brand proliferation and new consumer niches are being discussed, there’s a completely contrary phenomenon of convergence that is taking place simultaneously. This phenomenon of convergence takes place at three levels – technology, product categories and brands. However, the levels are heavily intermixed and interdependent... The Market Research In such scenario, Corpus was in a dilemma whether to go for convergence products or not. Just to prove his point Ramirez conducted a small market survey to find out the dimensions of product convergence in electronics and whether the consumers could be segmented. The first objective of the study was to explore the common/existing themes (if any) of product convergence in the market. The other objective of the study was to explore the presence of consumer segments based on their perceptions on perfect convergence... Data Collection and Methodology Data was collected using a structured questionnaire where responses from the consumers were elicited based on the products (Exhibit I). The items used in the questionnaire were selected based on a thorough research of the market and the convergent products mentioned in the exhibit... |
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Results of the Research Study The descriptive statistics (Exhibit II) indicated that the variations in the responses were low. This suggested that the factor analysis is appropriate.The outcome of Factor Analysis suggested a three factor solution given in Exhibit II, accounting for 52.746% of the variance. For the factors identified the factor means were calculated. Using the factor means, a cluster analysis was conducted using hierarchical clustering and Ward’s method of linkage (Exhibit III)...
The Decision Though the study was initiated by Ramirez, it was conducted by a Market Research firm and they had only submitted a summary report to Ramirez. However, to convince Costa, Ramirez has to establish two facts. First, that there are underlying dimensions of product convergence in the consumer minds...
