You are a product manager of a financial services product that is being sold directly to consumers over the Internet. The most important measure to the company is customer acquisition Cost-the cost associated with convincing a consumer to buy the service. You have been conducting tests with both a concentrated and undifferentiated segmentation strategy, and the results are presented here. Which strategy is the best? Why?
Concentrated segmentation outcome
• Purchased 10.000 much targeted exposures on Web sites such Yahoo Financial and keywords such as retirement IRA, and ROTH.
• Paid $80 per thousand exposures
• Obtained 400 clicks to the site, 40 trials, and 20 repeat customers
Undifferentiated segmentation outcome
• Purchased 1,000,000 run-of-site exposures on Web sites
• Paid $1.60 per thousand exposures
▪ Obtained 2,000 clicks to the site, 100 Mats, and 40 repeat customers