Question 1

________ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.
A) Benefit
B) Occasion
C) Geographic
D) Demographic
E) Psychographic

Accepted Answer

Psychographic segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics. This segmentation strategy is based on attitudes, beliefs, values, activities, interests, and opinions of consumers. It goes beyond simple demographics and considers the ways in which consumers think and feel about products and brands.

Question 2

________ segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
A) Geographic
B) Benefit
C) Occasion
D) Psychographic
E) Demographic

Accepted Answer

Demographic segmentation involves dividing the market into segments based on demographic characteristics such as age, gender, income, education, occupation, etc. Therefore, E is the best choice.

Question 3

Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?
A) geographic segmentation
B) benefit segmentation
C) occasion segmentation
D) demographic segmentation
E) psychographic segmentation

Accepted Answer

Delta Motorworks uses demographic segmentation as it identifies its target market based on age, gender, and income.

Question 4

"Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods." This is an example of ________.
A) geographic segmentation
B) product diversification
C) branding
D) psychographic segmentation
E) demographic segmentation

Accepted Answer

The statement describes geographic segmentation, which involves dividing a market into different geographic units such as regions, cities, or neighborhoods and creating products, advertising, and sales efforts that are tailored to the specific needs and preferences of those units. Product diversification involves expanding a company's product line to include new products, branding refers to creating a unique image or identity for a product, psychographic segmentation involves dividing a market based on personality traits, values, and lifestyles, and demographic segmentation involves dividing a market based on characteristics such as age, gender, income, and education level.

Question 5

Malcolm Sanders, a graduate student from Boston, makes customized snowboards for local snowboarding enthusiasts. The demand for snowboards peaks during the winter months, a busy time for Malcolm. He advertises more aggressively and sells most of his snowboards around this time. Which market segmentation approach does Malcolm most likely use?
A) gender segmentation
B) psychographic segmentation
C) occasion segmentation
D) geographic segmentation
E) age and life-cycle segmentation

Accepted Answer

Malcolm is using occasion segmentation because he is targeting customers based on the specific time (winter months) when the demand for his product is highest.

Question 6

________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods.
A) Benefit segmentation
B) Geographic segmentation
C) Demographic segmentation
D) Psychographic segmentation
E) Occasion segmentation

Accepted Answer

Geographic segmentation calls for dividing the market based on their geographic location, which includes regions, states, counties, cities, or even neighborhoods. This helps companies customize their marketing efforts based on the specific needs and preferences of consumers in each location.

Question 7

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes college students, as an untapped group of potential customers for their new line of products, they were engaging in ________.
A) occasion segmenting
B) local marketing
C) market diversification
D) market targeting
E) product positioning

Accepted Answer

The marketers at Fair & Leigh Inc. are engaging in market targeting, which is the process of evaluating the various segments and selecting one or more to enter. They have specifically chosen the Millennials as their target market.

Question 8

________ involves actually distinguishing the firm's market offering to create superior customer value.
A) Mass customization
B) Differentiation
C) Market segmentation
D) Diversifying
E) Targeting

Accepted Answer

Differentiation involves distinguishing the firm's market offering from its competitors to create superior customer value. Mass customization and diversifying are strategies related to offering different product or service options, while market segmentation and targeting are related to identifying and reaching specific customer groups.

Question 9

________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.
A) Behavioral
B) Psychographic
C) Age and life-cycle
D) Gender
E) Geographic

Accepted Answer

The answer of ________ segmentation divides buyers into segments based...

Question 10

________ consists of evaluating each market segment's attractiveness and selecting one or more market segments to enter.
A) Positioning
B) Mass customization
C) Market targeting
D) Market segmentation
E) Differentiation

Accepted Answer

This process is called market targeting, which involves evaluating the attractiveness of different market segments and choosing one or more to focus on. Market segmentation is the process of dividing the overall market into smaller groups with similar needs, while positioning is the process of creating a unique image of a product or brand in the minds of consumers. Mass customization refers to tailoring products or services to meet the unique needs of individual customers, while differentiation involves creating a distinction between a company's products or services and those of its competitors.

Question 11

Which of the following refers to a behavioral segmentation variable that involves segmenting markets into nonusers, ex-users, potential users, first-time users, and regular users of a product?
A) user status
B) usage rates
C) gender status
D) income status
E) loyalty status

Accepted Answer

User status is the behavioral segmentation variable that involves segmenting markets into nonusers, ex-users, potential users, first-time users, and regular users of a product. Usage rates, gender status, income status, and loyalty status are other segmentation variables that do not involve this specific categorization.

Question 12

________ requires finding the major advantages people look for in a product class, the kinds of people who look for each positive aspect of a product, and the major brands that deliver it.
A) Gender segmentation
B) Psychographic segmentation
C) Benefit segmentation
D) Geographic segmentation
E) Age and life-cycle segmentation

Accepted Answer

Benefit segmentation involves identifying the benefits that customers seek in a product class and then grouping customers according to the particular benefits they seek. This allows marketers to create targeted marketing strategies that focus on the specific benefits that customers are looking for.

Question 13

Gilron Holidays runs a premium membership club which caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts on select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach.
A) gender
B) income
C) occasion
D) benefit
E) geographic

Accepted Answer

Gilron Holidays is using an income segmentation approach as it is targeting customers whose annual salary exceeds $100,000.

Question 14

Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals.
A) demographic segmentation
B) geographic segmentation
C) benefit segmentation
D) psychographic segmentation
E) occasion segmentation

Accepted Answer

Psychographic segmentation is the process of dividing a market based on the consumer's personality traits, values, interests, and lifestyles. Marketers who use psychographic segmentation will segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals.

Question 15

________ segmentation has long been used in clothing, cosmetics, toiletries, and magazines.
A) Behavioral
B) Gender
C) Benefit
D) Occasion
E) Geographic

Accepted Answer

The answer of ________ segmentation has long been used in...

Question 16

________ segmentation refers to dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.
A) Gender
B) Psychographic
C) Occasion
D) Geographic
E) Income

Accepted Answer

Occasion segmentation divides the market based on specific occasions or events when consumers are more likely to buy certain products or services. This includes occasions such as weddings, birthdays, holidays, or seasonal events. Occasion segmentation can help marketers tailor their marketing strategies to target these specific occasions and cater to the needs and preferences of consumers during these times.

Question 17

Calypso Motors recently rolled out its hatchback, Proteus. Proteus combines the attractiveness of a luxury car with the excellent agility of a sports car. Calypso Motors is confident that Proteus will appeal to both sport scar enthusiasts as well as the luxury segment. Which of the following types of market segmentation is evident here?
A) gender segmentation
B) income segmentation
C) benefit segmentation
D) geographic segmentation
E) age and life-cycle segmentation

Accepted Answer

The segmentation strategy evident in the scenario is benefit segmentation. This is because Calypso Motors is targeting customers who value both luxury and agility in their vehicles.

Question 18

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
A) Mass customization
B) Positioning
C) Segmentation
D) Differentiation
E) Targeting

Accepted Answer

Positioning refers to the process of creating a distinct image and perception for a product or service in the minds of the target consumers. It involves identifying unique selling features, benefits, and attributes that differentiate the offering from competitors and positioning it on those parameters in the market. Proper positioning helps in creating a strong brand identity and building customer loyalty.

Question 19

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
A) Mass customization
B) Market targeting
C) Market segmentation
D) Differentiation
E) Positioning

Accepted Answer

Market segmentation involves dividing a market into smaller segments based on distinct needs, characteristics, or behaviors. This allows for more targeted marketing strategies to be developed for each segment, rather than a one-size-fits-all approach.

Question 20

A company selling child care products ran a television ad depicting women as being primarily responsible for child care. Many women viewers considered this regressive alleging that the ad failed to recognize the much more diversified role of women in today's world. This is an example of ________.
A) cause marketing
B) stereotyping
C) niche marketing
D) scapegoating
E) positioning

Accepted Answer

The scenario is an example of stereotyping, in which the advertisement portrays a narrow and outdated view of women's roles in child care.

Quiz 7: Customer-Driven Marketing Strategy: Creating Value for Target Customers

________ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.

________ segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?

"Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods." This is an example of ________.

________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods.

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes college students, as an untapped group of potential customers for their new line of products, they were engaging in ________.

________ involves actually distinguishing the firm's market offering to create superior customer value.

________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.

________ consists of evaluating each market segment's attractiveness and selecting one or more market segments to enter.

Which of the following refers to a behavioral segmentation variable that involves segmenting markets into nonusers, ex-users, potential users, first-time users, and regular users of a product?

________ requires finding the major advantages people look for in a product class, the kinds of people who look for each positive aspect of a product, and the major brands that deliver it.

Gilron Holidays runs a premium membership club which caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts on select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach.

Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals.

________ segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

________ segmentation refers to dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

A company selling child care products ran a television ad depicting women as being primarily responsible for child care. Many women viewers considered this regressive alleging that the ad failed to recognize the much more diversified role of women in today's world. This is an example of ________.