Reference no: EM133539838

Aeropostale, a clothing retailer, has contracted with Communispace to run a private community composed of engaged customers of their brand.

1. What are two differences between a traditional focus group and Communispace's service?

2. Communispace has uncovered that Aeropostale's customer base is less differentiated by demographics and more by the attitudes and opinions that they hold, and how these connect with brands they want to buy. Name one advantage and one disadvantage of demographic segmentation as compared to psychographic segmentation.

3. Suppose Communispace also finds that customers prefer to visit the Aeropostale store to try clothes but prefer to make their purchases online. Discuss how Aeropostale could leverage this insight and adapt their positioning in the clothing marketplace.

4. Another insight from Communispace is that launching a loyalty program may help with customer retention. Let's say Aeropostale launches a new loyalty program called "Club-A", in which members can earn rewards based on dollars spent. Management is excited to find that people who become Club-A members spend more per month compared to before they joined Club-A, and concludes the loyalty program is effective. Explain whether or not you agree with this conclusion.

5. Communispace also identifies that "fast fashion" with rapid changes in store merchandising is now what customers want - similar to stores like H and M and Forever 21. However, Aeropostale is considered to have a more classical image of the same kind of clothes over time. Do you think Aeropostale should change its positioning to be in line with new trends in "fast fashion" or stick to its original positioning? Support your choice with your reasoning.