Question 1

Double Drill Inc. segments its foreign markets by per capita income. This firm segments the international markets based on ________.
A) political factors
B) legal factors
C) geographic location
D) economic factors
E) cultural factors

Accepted Answer

Double Drill Inc. segments its foreign markets based on per capita income which is an economic factor. Per capita income reflects the economic status of individuals in a country which is directly related to their purchasing power. Therefore, it makes sense for Double Drill Inc. to segment its markets based on this economic factor as it gives them a good idea of the buying power of the consumers in those markets.

Question 2

Teen Mania Inc., a company marketing adventure sports merchandise for teenagers, targets the world's teenagers, who have similar needs and buying behavior even though they are located in different countries. Which market segmentation is evident here?
A) income segmentation
B) psychographic segmentation
C) gender segmentation
D) intermarket segmentation
E) occasion segmentation

Accepted Answer

The example given is of intermarket segmentation as the company is targeting teenagers from different countries who have similar needs and buying behavior, indicating that they are segmenting the market based on geographic location.

Question 3

When the size, purchasing power, and profile of a market segment can be calculated, the market is ________.
A) measurable
B) profitable
C) substantial
D) actionable
E) competitive

Accepted Answer

When a market segment can be measured, its characteristics and size can be quantified, which makes it easier for businesses to make informed decisions about marketing strategies, product development, and positioning. This enhances the probability of business success, and hence measuring the market is critical.

Question 4

Orion Inc. markets luxury watches. It targets the wealthy global elite segment, regardless of their geographic location. Orion most likely uses ________ segmentation.
A) income
B) age-group
C) occasion
D) benefit
E) cross-market

Accepted Answer

The answer of Orion Inc. markets luxury watches. It targets...

Question 5

Marketers often segment international markets according to the type and stability of government. In such instances, they segment markets based on ________.
A) geographic location
B) economic factors
C) cultural factors
D) political factors
E) sociocultural factors

Accepted Answer

The type and stability of government are political factors that marketers use to segment international markets. They consider factors such as the political system, government policies, and stability of the government in a particular country to determine if it is a suitable market for their products or services. By understanding these political factors, marketers can adjust their marketing strategies to meet the unique needs of each market.

Question 6

Using ________ segmentation, marketers form segments of consumers who have similar needs and buying behaviors even though they are located in different countries.
A) psychographic
B) demographic
C) occasion
D) benefit
E) intermarket

Accepted Answer

Intermarket segmentation is the process of forming segments of consumers who have similar needs and buying behaviors in different countries or regions. It involves identifying commonalities across countries or regions, and then grouping consumers based on those similarities. This enables marketers to develop global strategies that can be tailored to the needs of specific market segments. Psychographic, demographic, occasion, and benefit segmentation are all more focused on identifying similarities within a specific market, rather than across different markets.

Question 7

Bailey's Burgers promotes the Bailey's Jumbo Burger as a fun snack for teens and young adults. In this instance, Bailey's Burgers is practicing ________ segmentation.
A) benefit
B) age and life-cycle
C) psychographic
D) geographic
E) gender

Accepted Answer

Bailey's Burgers is using age and life-cycle segmentation by promoting their Jumbo Burger as a fun snack for teens and young adults. This is a clear example of targeting a specific age group and life stage.

Question 8

Which of the following refers to a cultural factor in the context of segmenting international markets?
A) receptivity of foreign firms
B) economic development of the country
C) population income levels
D) stability of the government
E) values and attitudes

Accepted Answer

Values and attitudes represent a cultural factor and play a crucial role in determining consumer behavior and preferences. Cultural differences can affect how people perceive products and services, how they communicate, and what they consider important. Therefore, understanding cultural factors is important for companies seeking to segment international markets effectively.

Question 9

When an effective program can be designed for attracting and serving a particular segment, the segment is best described as ________.
A) accessible
B) measurable
C) competitive
D) actionable
E) differentiable

Accepted Answer

When a segment is actionable, it means that an effective program can be designed specifically for attracting and serving that segment, making it a practical target for marketing efforts.

Question 10

Pacific Fisheries divides its customers into different regional units, such as Asia, Australia, and the Americas. This is an example of ________ segmentation.
A) demographic
B) psychographic
C) geographic
D) occasion
E) benefit

Accepted Answer

Pacific Fisheries is dividing its customers based on the region they are located in, which is a geographic segmentation strategy. Demographic segmentation divides customers based on factors like age, gender, income, and education. Psychographic segmentation is based on customers' lifestyles, interests, and values. Occasion segmentation is based on specific events or occasions that prompt customers to make purchases, such as holidays or birthdays. Benefit segmentation is based on the benefits or solutions that customers are looking for in a product or service.

Question 11

Papillon, a popular retailer of chic women's clothing, segments its market according to consumer lifestyles. Papillon most likely uses ________ segmentation for segmenting its market.
A) geographic
B) psychographic
C) benefit
D) age and life-cycle
E) occasion

Accepted Answer

Papillon segments its market based on consumer lifestyles, which is an example of psychographic segmentation. This means that Papillon is targeting consumers based on personality traits, values, interests, attitudes, and other lifestyle factors. This allows Papillon to create clothing and marketing campaigns that appeal to specific groups of consumers who share similar lifestyles and preferences.

Question 12

A market segment that is large enough or profitable enough to serve is ________.
A) measurable
B) accessible
C) substantial
D) profitable
E) differentiable

Accepted Answer

A market segment must be substantial in order to be large enough or profitable enough to serve. Measurable refers to the ability to quantify characteristics of the segment, accessible refers to the ability to reach and serve the segment, profitable refers to the potential for revenue and profitability, and differentiable refers to the ability to distinguish the segment from others. While these characteristics are important, they do not necessarily speak to the size or profitability of the segment.

Question 13

________ segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.
A) Complex
B) Measurable
C) Competitive
D) Differentiable
E) Homogeneous

Accepted Answer

Differentiable segments are those that have unique characteristics that set them apart from other segments and respond differently to marketing mix elements and programs. This allows for targeted and effective marketing strategies tailored to the specific needs and preferences of each segment.

Question 14

An American cola-manufacturing company that primarily targets rebellious and adventurous people most likely uses ________ segmentation.
A) occasion
B) geographic
C) income
D) benefit
E) psychographic

Accepted Answer

The company targets rebellious and adventurous people, which are personality traits that fall under psychographic segmentation.

Question 15

Market segments that can be effectively reached and served are ________.
A) measurable
B) accessible
C) substantial
D) actionable
E) profitable

Accepted Answer

The answer of Market segments that can be effectively reached...

Question 16

Business information services such as Experian Marketing Services and Nielsen help marketers to ________.
A) save significant amounts of money on shipping products
B) spend more time identifying potential customers
C) learn more specific details from consumers about their products
D) segment people and locations into marketable groups of like-minded consumers
E) expand their product offerings to interested clients and provide high-quality service to them

Accepted Answer

Business information services like Experian Marketing Services and Nielsen provide data analytics which help marketers to segment people and locations into marketable groups of like-minded consumers, allowing them to better target their advertising and promotions.

Question 17

Anchor Tractors focuses on selling its farm equipment in North America and Europe. It has not yet considered expanding into the Middle East. Which factor is likely most important in this decision regarding expansion?
A) geographic
B) political
C) demographic
D) personality
E) cultural

Accepted Answer

The most important factor in Anchor Tractors' decision about expanding to the Middle East is likely political. The Middle East is known for its political instability and conflicts, which can make it a risky and complex market to enter. This could affect the safety and security of the company's employees and assets, as well as potential regulatory hurdles and limits on business operations. Therefore, political factors would heavily influence the decision to expand in this region.

Question 18

________ segmentation assumes that nations close to one another will have many common traits and behaviors.
A) Geographic
B) Occasion
C) Psychographic
D) Benefit
E) Demographic

Accepted Answer

Geographic segmentation is based on the physical location of customers and looks at local, regional, national, and even international differences in behavior, culture, and preferences. This type of segmentation assumes that customers who are close to one another will have similar characteristics and behaviors.

Question 19

An Irish company that manufactures umbrellas and ponchos primarily targeting consumers during the winter months is using ________ segmentation.
A) psychographic
B) income
C) geographic
D) occasion
E) benefit

Accepted Answer

The answer of An Irish company that manufactures umbrellas and...

Question 20

Venus Inc., a company designing and marketing branded diamond jewelry, targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________ segmentation.
A) intermarket
B) loyalty
C) life-cycle
D) income
E) psychographic

Accepted Answer

Intermarket segmentation involves targeting consumers with similar needs and behaviors who are located in different countries or regions. This is exactly what Venus Inc. is doing, as they are targeting wealthy consumers with similar needs regardless of their location. Loyalty segmentation focuses on targeting customers who are loyal to the brand, while life-cycle segmentation divides customers based on their life stages. Income and psychographic segmentation both focus on dividing consumers according to their income or personality traits, respectively, which is not what Venus Inc. is doing.

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

Double Drill Inc. segments its foreign markets by per capita income. This firm segments the international markets based on ________.

Teen Mania Inc., a company marketing adventure sports merchandise for teenagers, targets the world's teenagers, who have similar needs and buying behavior even though they are located in different countries. Which market segmentation is evident here?

When the size, purchasing power, and profile of a market segment can be calculated, the market is ________.

Orion Inc. markets luxury watches. It targets the wealthy global elite segment, regardless of their geographic location. Orion most likely uses ________ segmentation.

Marketers often segment international markets according to the type and stability of government. In such instances, they segment markets based on ________.

Using ________ segmentation, marketers form segments of consumers who have similar needs and buying behaviors even though they are located in different countries.

Bailey's Burgers promotes the Bailey's Jumbo Burger as a fun snack for teens and young adults. In this instance, Bailey's Burgers is practicing ________ segmentation.

Which of the following refers to a cultural factor in the context of segmenting international markets?

When an effective program can be designed for attracting and serving a particular segment, the segment is best described as ________.

Pacific Fisheries divides its customers into different regional units, such as Asia, Australia, and the Americas. This is an example of ________ segmentation.

Papillon, a popular retailer of chic women's clothing, segments its market according to consumer lifestyles. Papillon most likely uses ________ segmentation for segmenting its market.

A market segment that is large enough or profitable enough to serve is ________.

________ segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.

An American cola-manufacturing company that primarily targets rebellious and adventurous people most likely uses ________ segmentation.

Market segments that can be effectively reached and served are ________.

Business information services such as Experian Marketing Services and Nielsen help marketers to ________.

Anchor Tractors focuses on selling its farm equipment in North America and Europe. It has not yet considered expanding into the Middle East. Which factor is likely most important in this decision regarding expansion?

________ segmentation assumes that nations close to one another will have many common traits and behaviors.

An Irish company that manufactures umbrellas and ponchos primarily targeting consumers during the winter months is using ________ segmentation.

Venus Inc., a company designing and marketing branded diamond jewelry, targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________ segmentation.