Deck 3: Segmentation

Question 1

The goal of homogeneity in customers' likes or dislikes is more achievable as the segment size gets smaller, but if
the segment is too small, it might not be profitable to serve.

Answer 1

True

Question 2

One reason celebrity spokespeople are thought to be effective is that ordinary people aspire to be like the celebrity, in whatever manner that is achievable.

Answer 2

True

Question 3

Income is a psychological variable.

Answer 3

False

Question 4

Economists note that imperfect competition occurs where consumers have unique needs and desires.

Question 5

Families with higher household incomes hire more service workers.

Question 6

In marketing, we deal with customer differences through segmentation.

Question 7

Opinion leaders, innovators, or market mavens are known for their expertise and involvement in a category.

Question 8

It is useful for marketers to understand the psychological and lifestyle choices that are relevant to the brand(s) the marketer is pitching.

Question 9

On a continuum from "mass marketing" to "one­to­one marketing," market segmentation is in the middle.

Question 10

The mass marketing approach is usually realistic.

Question 11

Maslow's hierarchy ranges from satisfaction of basic biological needs to more abstract needs regarding well­
being.

Question 12

Companies that have experimented with the one-to-one marketing approach have scaled back their attempts to achieve mass customization because it is not cost effective.

Question 13

Older couples who are empty nesters dream of spending their greater discretionary income on technology and furniture.

Question 14

Since most marketplaces are international, country and cultural differences can be tremendous.

Question 15

A market segment is an individual customer who shares similar inclinations toward your brand.

Question 16

Age is an easily identifiable demographic variable.

Question 17

Coupons that are printed at grocery checkouts are a function of items the customer just purchased.

Question 18

Urban living affords certain elements of entertainment, and smaller towns offer different kinds of amusement.

Question 19

Segments become more homogeneous as they increase in size.

Question 20

Collectively, a marketplace of consumers is homogeneous.

Question 21

Sometimes segments appear small only because the clustering was done too finely.

Question 22

"Current users" are relatively difficult to communicate with.

Question 23

All of the qualities that marketers care about may be mapped onto segments in any product category.

Question 24

Political party identifications have a clear and predictable effect on cereal consumption and cell phone plans.

Question 25

Size does not always correlate with future growth potential.

Question 26

Data sources for segmenting businesses and consumers tend to be the same.

Question 27

We can directly observe attitudes, but we cannot use behaviors to infer attitudes and psychological states.

Question 28

Marketers identify segments best when iterating between a managerial approach and a customer-based assessment.

Question 29

The least common marketing research technique used to segment customer data is cluster analysis.

Question 30

It is easier to identify, obtain information on, and woo customers who are currently using a competitor's brand, or who aren't even purchasers in the category.

Question 31

The ideal goal for the marketer is to find an untapped (or at least relatively underserved) group of customers whose needs can easily and profitably be met.

Question 32

Businesses treat all clients the same way--whether large or small.

Question 33

An upscale segment is always a tempting one for marketers to target because marketers assume that those customers can afford to purchase their goods or services, with a little less price sensitivity than other customers.

Question 34

To marketers, the most important feature of segments is their size, not their profitability.

Question 35

An increasingly popular means of using co-purchasing patterns to generate cross-selling suggestions are Internet recommendation agents.

Question 36

Lots of segmentation schemes fail because marketers focus on the wrong criteria.

Question 37

The "80:20 rule" is where 20% (or so) of your sales come from 80% (or so) of your customers.

Question 38

Profitability means number of customers.

Question 39

A set of segments may be very clear from a statistical perspective, but they need to be useful from a managerial point of view.

Question 40

Sometimes a marketing manager might hold beliefs that are not consistent with the customer data.

Question 41

As segments increase in size, it becomes to satisfy them with the same product.

A) more difficult
B) easier
C) cheaper
D) more fun

Question 42

Who created the hierarchy of needs?

A) Maslow
B) Watson
C) Skinner
D) Freud

Question 43

Which of the following is NOT a geographic factor?

A) country
B) county
C) urban vs. rural
D) stage in household life cycle

Question 44

means that all customers are treated the same. This approach might sound attractive because it simplifies the marketing task, but it is usually unrealistic because customers differ.

A) One-to-one marketing
B) Gender marketing
C) Group marketing
D) Mass marketing

Question 45

Company ABC segments customers by gender, age, education, and income. Company ABC's segmentation is based on factors.

A) demographic
B) geographic
C) psychological
D) behavioral

Question 46

Considering a continuum from "mass marketing" to "one­to­one marketing," market segmentation is .

A) very close to "mass marketing"
B) very close to "one­to­one marketing"
C) in the middle
D) on a different continuum

Question 47

Which of the following is NOT a demographic variable?

A) gender
B) age
C) culture
D) education

Question 48

Newlyweds are most likely to spend money on which of the following?

A) charitable giving
B) furniture
C) music
D) health care

Question 49

The fact that snow blowers tend to sell better in the north than in the south illustrates the importance of considering in marketing planning.

A) climate
B) urban living
C) culture
D) education

Question 50

Gender, age and income are all qualities of what segmentation base?

A) geographic
B) psychological
C) education
D) demographic

Question 51

Young adults are most likely to be interested in which of the following?

A) music technologies
B) diapers
C) health care options
D) saving for kids' college educations

Question 52

is a type of segmentation in which the company strategically focuses on targeting a smaller market with particular needs that the company can serve well.

A) Mass marketing
B) Demographic marketing
C) Niche marketing
D) One-to-one marketing

Question 53

Empty nesters tend to start dreaming of spending their greater discretionary income on .

A) music and movies
B) furniture and remodeling
C) higher education
D) travel and hobbies

Question 54

Consumers have unique needs and desires. Economists call this .

A) imperfect competence
B) imperfect competition
C) diverse demand
D) diverse marketing

Question 55

Differences in and preferences require that different products be provided to satisfy the different segments' needs.

A) companies
B) targets
C) perceptions
D) consumers

Question 56

Regarding the phrase "time is money," what type of effect does time seemingly have on money?

A) positive effect
B) no effect
C) little effect
D) negative effect

Question 57

Instead of trying to appeal to the entire marketplace, smart marketers and smart companies will try to find out .

A) what will appeal to high end customers
B) which customers might like their product, and how to get the product into their hands
C) which customers are price sensitive
D) which customers have brand loyalty and seek a brand image similar to other brands they like

Question 58

Company ABC is interested in better understanding how different groups of customers feel about its product. In order to do this, Company ABC will need to .

A) position its product in the market
B) segment the market
C) mass market
D) target market

Question 59

The contrast between mass marketing and one-to-one marketing illustrates that segments become more as they increase in size.

A) heterogeneous
B) favorable
C) homogeneous
D) unfavorable

Question 60

means that each customer serves as his or her own segment. This approach sounds appealing from the customer point of view because the product would be tailored specially for each person's idiosyncratic desires.

A) Geographic marketing
B) One-to-one marketing
C) Mass marketing
D) Psychological marketing

Question 61

The ideal goal for the marketer is to find a(n) group of customers whose needs they can easily and profitably meet.

A) quality
B) unmet
C) untapped
D) competing

Question 62

Entrepreneurs may need to approximate Prizm and Vals data, because they are .

A) not available to the public
B) difficult to understand
C) expensive
D) not interesting to consumers

Question 63

A service called Prizm posits that MBAs who live in New York have a lot more in common with their counterparts in London, Saö Paulo, and Tokyo, than they do with their neighbors in New York who are relatively less educated or wealthy. This is an example of what types of information being combined?

A) geographic and demographic
B) geographic and psychological
C) psychological and demographic
D) psychological and behavioral

Question 64

A popular tool for segmenting that uses psychographic data, and that is based on the belief that one's attitudes and value system determine one's orientation to certain products and/or brands is called .

A) Experian
B) Vals
C) Mals
D) Prizm

Question 65

Businesses plan for and interact differently with their larger clients than with their smaller ones. They assign more client service personnel and extend more relationship management efforts because these customers tend to be .

A) more profitable
B) cheaper
C) less profitable
D) higher quality

Question 66

Some customers are known for their expertise and involvement in a category and are willing to share information and give advice, making them likely to generate word of mouth. These people are knows as market .

A) mayhems
B) mavens
C) sharers
D) sellers

Question 67

If one element of an iterative segmentation is a smart marketer, what is the other?

A) good company
B) quality products
C) good customer data
D) good managing

Question 68

A(n) segment is always a tempting one for marketers to target because marketers assume that those customers can afford to purchase their goods or services.

A) international
B) upscale
C) small
D) large

Question 69

Sometimes segments can be highly profitable if the marketer pays attention and satisfies those customers' needs.

A) high income
B) large
C) low income
D) small

Question 70

It's not unusual to see a segmentation study comprised of some usage variable (e.g., heavy vs. light users) or some attitudinal variable (e.g., positively inclined toward our brand vs. loyal to a competitor). What type of variable is it usually cross-tabbed with?

A) demographic
B) geographic
C) psychological
D) physical

Question 71

Which of the following is a psychological factor?

A) attitude
B) education
C) age
D) country

Question 72

Marketers identify segments best when iterating between two approaches. What are the two approaches?

A) customer, market
B) managerial, customer
C) managerial, company
D) market, company

Question 73

One behavioral segment of great importance to the marketer is the of the focal brand because it is relatively easy to communicate to this group.

A) past user
B) future user
C) current user
D) non-user

Question 74

Which of the following is NOT a psychological factor?

A) affiliation
B) attitude
C) wants and needs
D) country

Question 75

What does the 80:20 rule say?

A) Eighty percent of sales will come from twenty percent of customers.
B) For every 80 people who look at a product, 20 will buy it.
C) For every 80 customers, 20 will be repeated customers.
D) Eight percent of customers are only interested in 20% of available merchandise.

Question 76

There is a rule of thumb that says it costs times more to acquire a new customer compared to maintaining a loyal one.

A) 3
B) 6
C) 9
D) 12

Question 77

Some customers are currently using a competitor's brand or aren't even purchasers in a certain category at all. It is for marketers to identify these people.

A) difficult
B) easy
C) impossible
D) a bad idea

Question 78

The managerial perspective is important with respect to assessing whether serving a specific is consistent with overall corporate goals.

A) market segment
B) product
C) provider
D) competitor

Question 79

Some customers are , caring about new developments in their category and seeking out new products.

A) opinion leaders
B) early adopters
C) market mavens
D) innovators

Question 80

What term refers to people who are trendy and fashionable in order to impress others and are often impulse buyers?

A) stretchers
B) stunners
C) survivors
D) strivers