2. Why are Black and Decker’s shares of two professional segments – Industrial and Tradesmen so different? (viz. about double in Industrial) Wouldn’t you expect them to be similar?
The Industrial segment and the Tradesmen segment have very different shares. The different product lines and logos would lead one to believe the products are not similar. If they were, why would the company make them under separate logos?
The buyers for the segments are very different and the buyers’ perceptions of the products are very different as well. In the Tradesmen segment, the buyers are individuals who purchase tools for their own use on job sites. In the Industrial segment, a corporation/company buys the tools for many employees to use on job sites. As stated in question 1, and can be seen in Table D, the Tradesmen do not believe that the Black and Decker tools are high quality or durable. But in the Industrial segment, very knowledgeable purchase decision influencers view the tools as high quality and heavy duty. A buyer will have a different standard for quality if purchasing an object for their own use, versus purchasing it for someone else to use. A tradesman buyer wants to make sure the tool will do good quality work and last him awhile; whereas an industrial