Identify the TWO basis or Criteria for segmentation referred to in the above scenario. Lorraine has received a lump sum of R500 000.00 from her retirement fund. She intends to usethese funds to start a student accommodation business. In order to start this business, Lorrainewould need approximately R1 million, funds are needed for building the students accommodationapartments and to register with various regulatory bodies. She has to source additional funding inorder to realise this dream. In the business plan, Lorraine has outlined the following:Accommodation will be offered ONLY to students in Cape Town, Johannesburg,Mpumalanga and Polokwane.ONLY females will be approved to reside in these houses, between the age of 18 - 35.Marketing of the business will be done on community Radio stations only at the fourmentioned cities.It is going to be a family business, Friends and relatives are in support of the idea but arenot able to support the business financially.

A small introduction about segmentation: The practise of splitting potential clients into groups…

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Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 30P

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