Deck 6: Marketing Segmentation

Question 1

The process of focusing on those segments that the company can serve most effectively and designing goods, services, and marketing programs with these segments in mind is known as target marketing.

Answer 1

True

Question 2

Market segmentation involves identifying consumers who are similar with regard to key traits, such as product-related needs and wants, and who are likely to respond well to a similar marketing mix.

Answer 2

True

Question 3

The three levels of segmentation include mass marketing, target marketing, and macromarketing.

Answer 3

False

Question 4

Mass marketing is likely to work in developing countries better than it does in industrialized markets, like the United States.

Question 5

Segment marketing requires the use of a database to gather information about each individual; the information can be used to customize the marketing message to each individual consumer.

Question 6

The four primary bases for segmentation are demographic, psychographic, behavioral, and benefit.

Question 7

Demographics are statistics that describe a population, such as age, gender, race, ethnicity, income, education, and occupation.

Question 8

Behavioral segmentation is used to identify clusters of consumers who seek the same product benefits or who use or consume the product in a similar fashion.

Question 9

Behavioral segmentation variables include benefits sought, user rate, usage status, loyalty status, buyer-readiness stage, and occasion.

Question 10

Occasion segmentation is the process of identifying market segments based on the time or occasion when a product should be purchased or consumed.

Question 11

Loyalty segmentation is the process of identifying market segments based on a consumer's stage of readiness to purchase a particular product.

Question 12

Benefit segmentation is the process of identifying market segments based on important differences between the benefits sought by the target market for purchasing a particular product.

Question 13

Usage rate segmentation is the process of identifying market segments based on users of competitors' products, ex-users, potential users, first-time users, or regular users.

Question 14

User status segmentation is the process of identifying market segments based on the extent to which consumers are nonusers, occasional users, medium users, or heavy users of a product.

Question 15

Loyalty segmentation is the process of identifying market segments based on the degree of brand preference, commitment, retention, allegiance, and the extent to which consumers engage in repeat purchases.

Question 16

"Bits and Bytes" men use the Internet to find out more about the latest computer models and software, to keep up with their hobbies, and to manage their investments. This is an example of user rate segmentation.

Question 17

In terms of user rate segmentation, segments of consumers identified as medium users of a product category would constitute the prime target for new brands within a product category.

Question 18

Introducing a new product to a market of nonusers of the product it will be expensive and will constitute a challenge.

Question 19

Coke uses a stronger lemon flavor in their soft drinks in Europe than the flavor used in the United States. This is an example of geographic segmentation.

Question 20

Multiattribute segmentation is defined as the process of segmenting the market by using multiple variables.

Question 21

Few companies use only demographic variables in segmenting the market. Typically, they also add psychographic and geographic variables to the demographic information to determine the best approach to reach their target markets.

Question 22

Two very popular classification systems based on zip codes are PRIZM and ACORN.

Question 23

Business markets can be segmented based on similar variables as those used with consumer markets.

Question 24

In assessing the effectiveness of a market segmentation approach, differential response is the extent to which marketers are capable of designing programs that can effectively serve the market segment.

Question 25

In assessing the effectiveness of a market segmentation approach, actionability is the extent to which marketers are capable of designing programs that can effectively serve the market segment.

Question 26

In assessing the effectiveness of a market segmentation approach, accessibility is the ability to communicate with and reach the target market.

Question 27

In assessing the effectiveness of a market segmentation approach, measurability is the degree to which individual market segments are easy to identify and measure.

Question 28

In assessing the effectiveness of a market segmentation approach, substantiality is the degree to which individual market segments are easy to identify and measure.

Question 29

In assessing the effectiveness of a market segmentation approach, stability is the degree to which segment consumer preferences are stable over time.

Question 30

Frequently, small-and medium-size businesses are quite successful by best addressing the needs of a single market segment, or a niche.

Question 31

Companies can use three main strategies to target their markets: differentiated, concentrated, and undifferentiated.

Question 32

Differentiated marketing is where the product is aimed at the entire market using a single marketing strategy.

Question 33

Concentrated marketing is the process of selecting only one market segment and targeting it with one single brand and marketing strategy.

Question 34

Undifferentiated marketing is the process of selecting only one market segment and targeting it with one single brand and marketing strategy.

Question 35

While the undifferentiated marketing strategy may appear as the most efficient, marketers are aware that segment needs may be better served by tailoring their offering to a particular market segment.

Question 36

An attribute/benefit positioning strategy used a product's attributes and benefits to position it in the mind of a consumer relative to the product's price.

Question 37

The price/quality positioning strategy position goods and services in terms of price and quality.

Question 38

The product user strategy focuses on a particular product use rather than on the product itself.

Question 39

Products using a product class positioning strategy differentiates themselves as leaders in a product category, as they define it.

Question 40

When a firm compares its brand to a competitor's brand, it is using a competitor positioning strategy.

Question 41

Positioning is largely about perception-it is the perception consumers have of a brand relative to the competition.

Question 42

Brands can be mapped on a positioning map based on the characteristics of the market segment, allowing them to be compared relative to other brands with which they compete.

Question 43

_____ is the shotgun approach to segmentation.

A) Mass marketing
B) Segment marketing
C) Micromarketing
D) Target marketing

Question 44

Mass marketing involves

A) the process of identifying consumers and/or markets for a specific product
B) identifying the product-related preferences of most consumers in order to target the product broadly to all consumers with the maximum likelihood of success
C) identifying consumers who are similar with regard to key traits, such as product-related needs and wants, and who would respond well to a similar marketing mix
D) a microanalysis of the customer and involves customer-specific marketing

Question 45

Segment marketing involves

A) the process of identifying channel segments that can push the product through to consumers
B) identifying the product-related preferences of most consumers in order to target the product broadly to all consumers with the maximum likelihood of success
C) identifying consumers who are similar with regard to key traits, such as product-related needs and wants, and who would respond well to a similar marketing mix
D) a microanalysis of the customer and involves customer-specific marketing

Question 46

Micromarketing involves

A) the process of identifying channel segments that can push the product through to consumers
B) identifying the product-related preferences of most consumers in order to target the product broadly to all consumers with the maximum likelihood of success
C) identifying consumers who are similar with regard to key traits, such as product-related needs and wants, and who would respond well to a similar marketing mix
D) a microanalysis of the customer and involves customer-specific marketing

Question 47

Identifying the product-related preferences of most consumers in order to target the product broadly to all consumers with the maximum likelihood of success is known as

A) micromarketing
B) segment marketing
C) mass marketing
D) segmentation

Question 48

Identifying consumers who are similar with regard to key traits, such as product-related needs and wants, and who would respond well to a similar marketing mix is known as

A) micromarketing
B) segment marketing
C) mass marketing
D) market positioning

Question 49

A microanalysis of the customer involving customer-specific marketing is known as

A) micromarketing
B) segment marketing
C) mass marketing
D) segmentation

Question 50

BMW offers the Mini to young consumers who have just finished college, the 300 series to young professionals, and the 500 series to mid-level professionals. This is an example of

A) micromarketing
B) segment marketing
C) mass marketing
D) segmentation

Question 51

Customizing a marketing message and the marketing mix to a single consumer is known as

A) micromarketing
B) segment marketing
C) mass marketing
D) segmentation

Question 52

Marketing products to Generation Y consumers is an example of using _____ segmentation.

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

Question 53

ArthriCare is being promoted as the only pain relieving rub with a capsaicin formula that has two extra pain relieving ingredients. By using a picture of a female in her 60s in the ad and placing it in a magazine read by older Americans, ArthriCare is using a _____ segmentation strategy.

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

Question 54

Liz Claiborne and DKNY have traditionally targeted females with their products and advertising. But recently they have begun targeting men with new products and advertisements. This is an example of using a _____ segmentation strategy.

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

Question 55

JP Morgan Chase has developed a series of advertisements directed towards Hispanic consumers. This is an example of using a _____ segmentation strategy.

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

Question 56

The New Right is a core constituent of the political right. Marketing products to this particular group would be an example of using a _____ segmentation strategy.

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

Question 57

The most well-known psychographic segmentation tool is

A) user status segmentation
B) ACORN
C) VALS
D) PRIZM

Question 58

User rate, usage status, loyalty status, and buyer-readiness stage are examples of _____ segmentation.

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

Question 59

The process of identifying market segments based on important differences between the benefits sought by a target market for purchasing a particular product is

A) usage status segmentation
B) loyalty status segmentation
C) user rate segmentation
D) benefit segmentation

Question 60

Benefit segmentation is the process of identifying market segments based on

A) the extent to which consumers are nonusers, occasional users, medium users, or heavy users of a product
B) users of competitors' products, ex-users, potential users, first-time users, or regular users
C) the degree of brand preference, commitment, retention, allegiance, and the extent to which consumers engage in repeat purchases
D) important differences between the benefits sought by the target market for purchasing a particular product

Question 61

Usage rate segmentation is the process of identifying market segments based on

A) the extent to which consumers are nonusers, occasional users, medium users, or heavy users of a product
B) users of competitors' products, ex-users, potential users, first-time users, or regular users
C) the degree of brand preference, commitment, retention, allegiance, and the extent to which consumers engage in repeat purchases
D) important differences between the benefits sought by the target market for purchasing a particular product

Question 62

User status segmentation is the process of identifying market segments based on

A) the extent to which consumers are nonusers, occasional users, medium users, or heavy users of a product
B) users of competitors' products, ex-users, potential users, first-time users, or regular users
C) the degree of brand preference, commitment, retention, allegiance, and the extent to which consumers engage in repeat purchases
D) important differences between the benefits sought by the target market for purchasing a particular product

Question 63

Loyalty segmentation is the process of identifying market segments based on

A) the extent to which consumers are nonusers, occasional users, medium users, or heavy users of a product
B) users of competitors' products, ex-users, potential users, first-time users, or regular users
C) the degree of brand preference, commitment, retention, allegiance, and the extent to which consumers engage in repeat purchases
D) important differences between the benefits sought by the target market for purchasing a particular product

Question 64

Buyer-readiness segmentation is the process of identifying market segments based on

A) the extent to which consumers are nonusers, occasional users, medium users, or heavy users of a product
B) users of competitors' products, ex-users, potential users, first-time users, or regular users
C) the time or occasion when a product should be purchased or consumed
D) consumers' stage of readiness to purchase a particular product

Question 65

Occasion segmentation is the process of identifying market segments based on

A) the extent to which consumers are nonusers, occasional users, medium users, or heavy users of a product
B) users of competitors' products, ex-users, potential users, first-time users, or regular users
C) the time or occasion when a product should be purchased or consumed
D) consumers' stage of readiness to purchase a particular product

Question 66

In terms of computer usage, the "Viking Garner" segment seeks opportunities to chat with other people online and to play games. This is an example of using

A) demographic segmentation
B) user status segmentation
C) psychographic segmentation
D) benefit segmentation

Question 67

If Taco Bell is planning a new type of product, in terms of user rate segmentation, the primary market segment for this new product should be

A) nonusers
B) occasional users
C) medium users
D) heavy users

Question 68

While it is true that introducing a new product to a market of nonusers of the product will be expensive and a challenge, it is also true that such markets may present great potential. This is an example of

A) usage rate segmentation
B) user status segmentation
C) buyer-readiness segmentation
D) loyalty segmentation

Question 69

When businesses use frequency or loyalty programs, they are using a _____ strategy.

A) occasion segmentation
B) buyer-readiness stage segmentation
C) loyalty segmentation
D) usage rate segmentation

Question 70

Buyer-readiness segmentation includes all of the following segments, except

A) consumers who are not aware of the product
B) consumers who use a competing brand
C) consumers who are aware of the product and may need it in the future
D) consumers who are aware of the product, but will never need it

Question 71

If Virginia Eye Institute develops a series of advertisements to develop awareness of LASIK eye surgery, they would be using a buyer-readiness stage segmentation strategy and targeting

A) consumers who are not aware of the product
B) consumers who use a competing brand
C) consumers who are aware of the product and may need it in the future
D) consumers who are aware of the product, but will never need it

Question 72

Virginia Eye Institute develops a series of advertisements to develop awareness of LASIK eye surgery for consumers who are not aware of the product, but would potentially use the product if they are aware of how it works. Virginia Eye Institute is using

A) loyalty segmentation
B) occasion segmentation
C) user status segmentation
D) buyer-readiness stage segmentation

Question 73

Segmenting consumers based on the state or region where they live is an example of _____ segmentation.

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

Question 74

Because consumers' tastes vary, Campbell's Soup alters the ingredients in some of their soups based on the different regions of the United States where the product is sold. This is an example of

A) demographic segmentation
B) geographic segmentation
C) behavioral segmentation
D) psychographic segmentation

Question 75

A local car dealership runs a special one page ad in the local newspaper promoting a special spring sale. This is an example of

A) demographic segmentation
B) geographic segmentation
C) behavioral segmentation
D) psychographic segmentation

Question 76

Because PRIZM and ACORN classification systems are based on a person's zip code, the first variable being used for segmenting the market is

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

Question 77

In segmenting the business market, examples of _____ would include firm size and industry sector.

A) demographic segmentation
B) geographic segmentation
C) behavioral segmentation
D) psychographic segmentation

Question 78

Segmenting a business market into segments such as the relationship-seeking segment and the price-sensitive segment entails using

A) demographic segmentation
B) geographic segmentation
C) behavioral segmentation
D) psychographic segmentation

Question 79

In terms of business segmentation using a behavioral segmentation approach, the relationship-seeking segment consists of

A) relatively sophisticated product users who believe that the user-provider relationship is very important
B) businesses looking for the lowest possible price
C) business customers who are very demanding and need extensive customer focus, placing considerable demands on suppliers while demanding low prices
D) customers who are prepared to pay higher-than-average prices for a product that is tailored to their specific needs

Question 80

In terms of business segmentation using a behavioral segmentation approach, the price-sensitive segment consists of

A) relatively sophisticated product users who believe that the user-provider relationship is very important
B) businesses looking for the lowest possible price
C) business customers who are very demanding and need extensive customer focus, placing considerable demands on suppliers while demanding low prices
D) customers who are prepared to pay higher-than-average prices for a product that is tailored to their specific needs