Question 1

Market ________ is the process of classifying customers into groups with different needs,characteristics or behaviour.

Accepted Answer

segmentation

Question 2

Demographic variables are so frequently used in market segmentation because they ________.

Accepted Answer

D

Question 3

Even though several options are available at any one time,there ________ to segment a market.

Accepted Answer

Market segmentation is not an exact science and there is no one single best approach. Different companies may have different target markets and may choose to segment them in different ways. Therefore, there is no single way to segment a market.

Question 4

Marketers must be careful to guard against ________ when using age and life-cycle segmentation.

Accepted Answer

Stereotyping can occur when using age and life-cycle segmentation, assuming that all individuals within a certain age or life stage share the same characteristics or behaviors. Marketers must avoid making assumptions and instead conduct research to understand the specific needs and preferences of their target audience.

Question 5

Through talking to numerous competitors at a regional trade show,you learn that most of them use the most popular base for segmenting customer groups.What is it?

Accepted Answer

Demographic segmentation is the most widely used base for segmenting customer groups. It involves dividing a market on the basis of variables such as age, gender, income, family size, education level, occupation, and social class. This information is generally readily available and easily measurable, making it a popular choice for marketers.

Question 6

Companies today recognise that they cannot appeal to all buyers in the marketplace,or at least not to all buyers in the same way.

Accepted Answer

This statement is true. Companies must focus on specific target markets and tailor their marketing strategies to appeal to the specific needs and preferences of those markets. This is known as market segmentation.

Question 7

Today,most companies have moved away from mass marketing and are being choosier about the customers with whom they wish to build relationships.

Accepted Answer

This statement is true. Many companies have shifted their focus from mass marketing to targeted marketing in order to build more meaningful relationships with specific customer segments.

Question 8

Marketers of automobiles,clothing,cosmetics,financial services and travel are most likely to use which of the following types of segmentation?

Accepted Answer

The answer of Marketers of automobiles,clothing,cosmetics,financial services and travel are...

Question 9

Through market segmentation,companies divide large,heterogeneous markets into smaller segments that can be reached more ________ with products and services that match their unique needs.

Accepted Answer

Through market segmentation, companies can reach smaller segments more efficiently and effectively with products and services that match their unique needs. This allows companies to tailor their marketing efforts to specific groups of consumers, increasing the chances of success and maximizing the return on investment. By targeting the right consumers with the right message and product, companies can differentiate themselves from competitors and build long-term relationships with customers.

Question 10

The division of buyers into groups based on their knowledge,attitudes,uses or responses to a product is ________ segmentation.

Accepted Answer

Behavioural segmentation involves dividing buyers into groups based on their behaviours, such as their knowledge, attitudes, uses or responses to a product. This type of segmentation is based on observable behaviours rather than demographic or geographic factors. Therefore, A) is the best choice as it directly addresses the question.

Question 11

Market ________ is the process of arranging for a product to occupy a clear,distinctive and desirable place relative to competing products in the minds of target consumers.

Accepted Answer

The answer of Market ________ is the process of arranging...

Question 12

Unilever,a company active in the cosmetics and toiletries market,is most likely primarily using which type of segmentation with its Lynx product?

Accepted Answer

Lynx is a brand of male grooming products, indicating that Unilever is primarily using gender segmentation to target its audience.

Question 13

Your company wants to move away from mass marketing and engage in customer-driven marketing.The four steps to take,in order,are market segmentation,marketing positioning,differentiation and targeting.

Accepted Answer

The answer of Your company wants to move away from...

Question 14

The division of buyers into groups based on their social class,life-style or personality characteristics is ________ segmentation.

Accepted Answer

Psychographic segmentation is the division of buyers into groups based on their personality traits, values, attitudes, interests, and lifestyles. This segmentation helps in understanding the buyer's behavior, preferences, and motivations.

Question 15

When Hungry Jacks targets children,teens,adults and seniors with different ads and media,it is practicing ________ segmentation.

Accepted Answer

The question is asking about targeting different age groups, which is an example of age and life-cycle segmentation. Therefore, option B is the best choice for this question. Geographic segmentation would involve targeting based on location, psychographic segmentation would involve targeting based on personality and lifestyle, behavioral segmentation would involve targeting based on purchasing behavior, and usage rate segmentation would involve targeting based on frequency of use.

Question 16

Market ________ is the process of evaluating each market segment's attractiveness and selecting one or more of the market segments to enter.

Accepted Answer

The answer of Market ________ is the process of evaluating...

Question 17

A customer-driven marketing strategy seeks to build the right relationships with the right customers.

Accepted Answer

A customer-driven marketing strategy focuses on understanding and satisfying the needs and wants of specific groups of customers in order to build long-term relationships with them. This requires identifying the right customers and developing marketing tactics that are tailored to their preferences and behaviors.

Question 18

What are the four steps,in order,to designing a customer-driven marketing strategy?

Accepted Answer

Market segmentation is the first step in identifying groups with different needs and characteristics. Targeting involves selecting the group or groups that the company will serve. Differentiation is creating a unique offering to meet the needs of the target market. Positioning is developing a marketing mix to achieve the company's objectives in the target market. The correct order is market segmentation, targeting, differentiation, and positioning.

Question 19

A Pet Supplies firm divides the pet market according to the owners' race,occupation,income and family life-cycle.What type of segmentation does it use?

Accepted Answer

The firm is dividing the market based on demographic factors such as race, occupation, income, and family life-cycle.

Question 20

Your firm has decided to localise its products and services to meet local market demands.A good approach to use would be ________ segmentation.

Accepted Answer

Geographic segmentation is the best approach to use when localizing products and services as it involves dividing a market into different geographical units such as nations, regions, cities, or neighbourhoods. This approach recognizes the differences in consumer needs and preferences based on their location, language, culture, and climate, which can impact how the products and services are perceived and used. By using geographic segmentation, the firm can tailor its marketing mix to meet the specific needs and wants of the local customers, such as adapting the product features, packaging, pricing, communication, and distribution channels to suit the local market conditions.

Quiz 6: Business Markets and Business Buyer Behaviour