Question 1

Newlyweds in the United States buy more in the first six months than an established household does in five years. Newlyweds are an example of a(n)________ segment.
A) life stage
B) age
C) behavior
D) user status
E) income

Accepted Answer

The statement refers to a life stage segment, which is based on a specific stage in a consumer's life, such as newlyweds, retirees, or parents with young children.

Question 2

Which of the following statements about market segmentation is true?
A) It involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.
B) It is a process of evaluating each segment's attractiveness and selecting one or more to enter.
C) It is a process of creating an image or identity of the product in the minds of the target market.
D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants.
E) It is the quality of how marketers go to market with the goal of optimizing their spending to achieve good results.

Accepted Answer

Market segmentation is the process of identifying and profiling distinct groups of buyers who differ in their needs and wants. Option A describes positioning, option B describes targeting, option C describes branding, and option E describes marketing efficiency.

Question 3

When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats?
A) differentiated marketing
B) affiliate marketing
C) guerrilla marketing
D) affinity marketing
E) grassroots marketing

Accepted Answer

Nike is using grassroots marketing by getting involved in local communities and sponsoring local school teams, which helps them to build relationships with their targeted customers at the local level.

Question 4

Pampers divides its market demographically on the basis of ________ into prenatal, new baby, baby, toddler, and preschooler.
A) life stage
B) gender
C) age
D) income
E) social class

Accepted Answer

The answer of Pampers divides its market demographically on the...

Question 5

________ are products such as Kiehl's skin care and Kendall-Jackson wines that are priced between average middle-market and superpremium old luxury brands and are also based on emotions.
A) Old Luxury brand extensions
B) Accessible superpremium products
C) Luxury items
D) Hourglass products
E) Masstige goods

Accepted Answer

Masstige goods are products that combine high-end branding and design with affordable prices, appealing to consumers who want to indulge in luxury goods but may not have the budget for old luxury brands. Kiehl's skin care and Kendall-Jackson wines are examples of masstige goods, as they are priced between average middle-market and superpremium old luxury brands and aim to evoke emotions and a sense of luxury for the consumer.

Question 6

According to PRIZM, the ________ cluster is characterized by educated, midscale, and multiethnic, urbane couples in America's fast-growing cities. Concentrated in a handful of metros such as Las
Vegas, Miami, and Albuquerque, these households feature older home owners, empty nesters, and college graduates.
A) beltway boomers
B) old milltowns
C) cosmopolitans
D) young digerati
E) winner's circle

Accepted Answer

The cluster described in the question is the "cosmopolitan" cluster according to PRIZM's segmentation system. This cluster is characterized by urban, educated, and diverse households, with a mix of young professionals and retirees. This is the only option that matches the description given in the question.

Question 7

Those who favor localized marketing see national advertising as wasteful because ________.
A) it gets too up close and personal with consumers
B) it drives up manufacturing and marketing costs by reducing economies of scale
C) it magnifies logistical problems
D) it fails to address local needs
E) it sends conflicting marketing messages

Accepted Answer

Localized marketing advocates argue that national advertising fails to address local needs, which can lead to inefficiencies and missed opportunities. By tailoring marketing efforts to specific regions, companies can better understand and connect with their target audience, leading to higher levels of engagement and more effective campaigns.

Question 8

Establishing and communicating the distinctive benefit(s)of the company's market offering, for each target segment is called ________.
A) market research
B) market positioning
C) marketing effectiveness
D) market segmentation
E) market dominance

Accepted Answer

Market positioning involves identifying and communicating the unique benefits of a company's product or service to each target market segment. This helps the company differentiate itself from competitors and better appeal to the needs and wants of each segment.

Question 9

Jose and Erika have just divorced. Which of the following demographic segmentation subsegment formats might be used by marketers to reach Jose or Erika?
A) life stage
B) benefits
C) age segment
D) personality type
E) social class

Accepted Answer

Life stage is the most relevant demographic segmentation subsegment format for reaching divorced individuals like Jose and Erika as it takes into account major life changes and transitions, such as divorce. This subsegment format considers the unique needs and behaviors of individuals going through a specific life stage, which can be useful for marketers looking to tailor their messaging and products to this audience. Benefits, age segment, and social class may not be as relevant in this context, while personality type can be difficult to accurately assess and apply in marketing efforts.

Question 10

According to PRIZM, the ________ cluster is characterized as the nation's tech-savvy singles and couples, living in areas typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants, and all types of bars-from juice to coffee to microbrew.
A) beltway boomers
B) old milltowns
C) young digerati
D) cosmopolitans
E) winner's circle

Accepted Answer

This cluster is specifically described as tech-savvy singles and couples, which aligns with the "young digerati" category in PRIZM. The other options do not align with the characteristics described in the statement.

Question 11

Robert is the owner of an automobile manufacturing company. He calls for a board meeting and tells his directors that he wants to build a car that lets the users experience power and exhilaration. He tells them that the car must allow his users to soar from 0-60 mph in about 4 seconds. He also adds in that the price of the car must be affordable enough for anybody making a good salary. In accordance with the given scenario, Robert is trying to segment the market on the basis of ________.
A) occupation
B) family size
C) benefits
D) nationality
E) user status

Accepted Answer

Robert is segmenting the market based on the benefit that the car must provide to its users, which is power and exhilaration. He is not considering any other factors such as occupation, family size, nationality or user status. Therefore, the correct choice is C.

Question 12

According to PRIZM, the ________ cluster is characterized as being in their late forties and fifties, college-educated, upper-middle-class homeowners that married late, and are still raising children in comfortable suburban subdivisions and pursuing kid-centered lifestyles.
A) cosmopolitans
B) beltway boomers
C) young digerati
D) winner's circle
E) old milltowns

Accepted Answer

The beltway boomers cluster fits the description given in the question, as they are characterized as being in their late forties and fifties, college-educated, upper-middle-class homeowners that married late, and are still raising children in suburban subdivisions, according to PRIZM. The other clusters mentioned in the question have different characteristics.

Question 13

If a marketing manager segments the market into culture-oriented, sports-oriented, or outdoor-oriented groups, he or she is segmenting on the basis of ________.
A) loyalty status
B) behavioral occasions
C) user status
D) psychographic lifestyle
E) readiness stage

Accepted Answer

The segmentation based on culture-oriented, sports-oriented, or outdoor-oriented groups suggests that the marketing manager is segmenting the market on the basis of psychographic lifestyle, which refers to dividing the market into groups based on social class, personality, values, interests, and attitudes.

Question 14

According to PRIZM, the ________ cluster is characterized by retired singles and couples, living on downscaled incomes in pre-1960 homes and apartments, who enjoy gardening, sewing, socializing at veterans clubs, and eating out at casual restaurants.
A) old milltowns
B) young digerati
C) winner's circle
D) beltway boomers
E) cosmopolitans

Accepted Answer

The description matches the Old Milltowns cluster in PRIZM.

Question 15

If a marketer decides to segment a market based on neighborhoods, the marketer will have chosen the ________ method of segmentation.
A) demographic
B) psychographic
C) geographic
D) cultural
E) behavioral

Accepted Answer

The method of segmentation based on neighborhoods is geographic segmentation, where the market is divided based on geographical boundaries. This helps in targeting consumers who are more likely to have similar needs, preferences, and behaviors due to their location. Therefore, choice C - geographic - is the best choice for this question.

Question 16

Hilton Hotels customizes rooms and lobbies according to location. Northeastern hotels are sleeker and more cosmopolitan. Southwestern hotels are more rustic. This is an example of ________ segmentation.
A) demographic
B) behavioral
C) psychographic
D) geographic
E) cultural

Accepted Answer

This is an example of geographic segmentation, where a company customizes its products or services based on the location or region of its target market. In this case, Hilton Hotels differentiates its rooms and lobbies based on the geographic characteristics of their target market, such as their preferences and attitudes towards design and aesthetics.

Question 17

The process of selecting one or more market segments to enter is called ________.
A) market targeting
B) market dominance
C) market positioning
D) market segmentation
E) market research

Accepted Answer

Market targeting refers to the process of selecting one or more market segments to enter, based on factors such as market size, growth rate, competition, and customer needs and preferences. Market dominance refers to a company's ability to maintain a leading position in a particular market or industry. Market positioning refers to the way a company's product or brand is perceived by customers in relation to competing products or brands. Market segmentation is the process of dividing a market into smaller groups of consumers with similar needs or characteristics. Market research refers to the collection and analysis of information about a market, including customer needs and preferences, competitor activities, and market trends.

Question 18

If a marketing researcher uses such names (categories)as Blue Blood Estates, Winner's Circle, Hometown Retired, or Shotguns and Pickups, when doing segmentation research, the marketing researcher is using ________ clusters.
A) PRIZM
B) behavioral
C) psychographic
D) demographic
E) VALS

Accepted Answer

The names mentioned are examples of segments or clusters identified in the PRIZM system, which is a popular segmentation system used by marketers that categorizes consumers based on their demographic and lifestyle characteristics.

Question 19

Regardless of the type of segmentation scheme used, the key is adjusting the marketing program to recognize ________.
A) the level of disposable income earned by the target group
B) customer differences
C) the cost-benefit relationship of narrowing the target market
D) customer complaints
E) saturated markets

Accepted Answer

Segmentation is all about identifying customer differences and targeting them with tailored marketing programs. The other options do not directly relate to the concept of segmentation.

Question 20

A ________ consists of a group of customers who share a similar set of needs and wants.
A) vertical marketing system
B) market basket
C) market share
D) market segment
E) market level

Accepted Answer

A market segment is a group of customers who share similar needs and wants. Vertical marketing system refers to a type of distribution network, market basket refers to the collection of products purchased by a consumer in a single shopping trip, market share refers to a company's portion of sales in a particular market, and market level is not a commonly used marketing term.

Quiz 8: Identifying Market Segments and Targets

Newlyweds in the United States buy more in the first six months than an established household does in five years. Newlyweds are an example of a(n) ________ segment.

Which of the following statements about market segmentation is true?

When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats?

Pampers divides its market demographically on the basis of ________ into prenatal, new baby, baby, toddler, and preschooler.

________ are products such as Kiehl's skin care and Kendall-Jackson wines that are priced between average middle-market and superpremium old luxury brands and are also based on emotions.

Those who favor localized marketing see national advertising as wasteful because ________.

Establishing and communicating the distinctive benefit(s) of the company's market offering, for each target segment is called ________.

Jose and Erika have just divorced. Which of the following demographic segmentation subsegment formats might be used by marketers to reach Jose or Erika?

According to PRIZM, the ________ cluster is characterized as the nation's tech-savvy singles and couples, living in areas typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants, and all types of bars-from juice to coffee to microbrew.

According to PRIZM, the ________ cluster is characterized as being in their late forties and fifties, college-educated, upper-middle-class homeowners that married late, and are still raising children in comfortable suburban subdivisions and pursuing kid-centered lifestyles.

If a marketing manager segments the market into culture-oriented, sports-oriented, or outdoor-oriented groups, he or she is segmenting on the basis of ________.

According to PRIZM, the ________ cluster is characterized by retired singles and couples, living on downscaled incomes in pre-1960 homes and apartments, who enjoy gardening, sewing, socializing at veterans clubs, and eating out at casual restaurants.

If a marketer decides to segment a market based on neighborhoods, the marketer will have chosen the ________ method of segmentation.

Hilton Hotels customizes rooms and lobbies according to location. Northeastern hotels are sleeker and more cosmopolitan. Southwestern hotels are more rustic. This is an example of ________ segmentation.

The process of selecting one or more market segments to enter is called ________.

If a marketing researcher uses such names (categories) as Blue Blood Estates, Winner's Circle, Hometown Retired, or Shotguns and Pickups, when doing segmentation research, the marketing researcher is using ________ clusters.

Regardless of the type of segmentation scheme used, the key is adjusting the marketing program to recognize ________.

A ________ consists of a group of customers who share a similar set of needs and wants.