Question 1

You work for a travel agency. Business has been slow, and you want to suggest some promotions targeted to specific market segments. What three psychographic segmentation variables would you recommend using and why?

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Question 2

Tropicana Essentials Healthy Heart targets consumers who like orange juice and who also want extra vitamins but no sodium. Explain how Tropicana uses behavioral segmentation in this example.

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Question 3

How might a marketer benefit most from using PRIZM?

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Question 4

A company that uses a(n) ________ targeting strategy is appealing to a broad spectrum of people.
A) fragmented
B) undifferentiated
C) concentrated
D) differentiated
E) customized

Accepted Answer

An undifferentiated targeting strategy, also known as mass marketing, targets the entire market without any specific segmentations. Therefore, it appeals to a broad spectrum of people by offering products or services that are designed to meet the needs of the entire market.

Question 5

You work for a travel agency. Business has been slow, and you want to suggest some promotions targeted to specific market segments. What three demographic segmentation variables would you recommend using and why?

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Question 6

When Apple marketed its iPod to teens, it used a personality segmentation variable.

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Question 7

Because children have little influence over family purchases beyond toys and games, marketers tend to not focus on consumers under the age of 12.

Accepted Answer

Marketers do focus on consumers under the age of 12 as they can influence family purchases beyond toys and games, such as food, clothing, and entertainment. However, there are regulations in place to protect children from manipulative advertising, and marketers must be mindful of ethical considerations when targeting this demographic.

Question 8

Describe several characteristics of Generation Y and Generation X that are important to marketers.

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Question 9

Honor, a market researcher for a packaged goods company, is segmenting a population of consumers based on how frequently they buy different types of packaged goods. Honor is using behavioral segmentation.

Accepted Answer

Behavioral segmentation is based on consumer behavior, such as how frequently they buy certain products or the benefits they seek from those products.

Question 10

Explain why the Hispanic American population is particularly important to marketers.

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Question 11

How do marketers use the assumption that "birds of a feather flock together"?

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Question 12

A(n) ________ would probably include customer demographics, location, lifestyle information, and a description of how frequently the customer buys the product.
A) geocode
B) NAICS classification
C) segment profile
D) VALS™ type
E) PRIZM segment

Accepted Answer

A segment profile includes information about the customer demographics, location, lifestyle, and purchase behavior. Geocode refers to geographical coordinates, NAICS classification is a system for identifying industry sectors, VALS™ type is a system for understanding consumer values, and PRIZM segment is a system for classifying households based on demographic and lifestyle characteristics.

Question 13

Before selecting a targeting strategy, marketers should ________.
A) select media for an advertising campaign
B) develop segment profiles
C) compare target markets
D) implement a positioning strategy
E) finalize the marketing mix

Accepted Answer

Before selecting a targeting strategy, marketers should develop segment profiles in order to understand the characteristics, needs, and behaviors of potential target markets. This information will then inform the selection of a targeting strategy, which may involve pursuing one or more of these segments with marketing efforts. Selecting media, implementing a positioning strategy, and finalizing the marketing mix all come after the selection of a targeting strategy. Comparing target markets may be part of the segment profiling process, but it is not the first step in developing a targeting strategy.

Question 14

How do marketing organizations benefit from cultural diversity?

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Question 15

Which of the following is the process of evaluating and selecting the most viable market segment to enter?
A) segmentation
B) differentiation
C) targeting
D) market mixing
E) positioning

Accepted Answer

The process of evaluating and selecting the most viable market segment to enter is called targeting. Segmentation is the process of dividing a larger market into smaller groups of consumers with similar needs or characteristics. Differentiation is the process of distinguishing a company's product or service from its competitors. Positioning is the process of creating a certain image or perception of a product or service in the minds of consumers. Market mixing is not a commonly used term in marketing.

Question 16

A large chain amusement park sells tickets at its main gate for guests who are visiting the park for just that one day. The park also sells seasonal passes that can only be used on weekdays. What market segmentation is being implemented by the amusement park?

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Question 17

How does the concept of customer stickiness relate to the 80/20 rule?

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Question 18

A viable target market should ________.
A) have needs that can adequately be served by the marketer
B) not be reachable by other organizations
C) have the same needs as similar-sized groups
D) be the most profitable possible target market
E) be the largest possible market

Accepted Answer

A viable target market should have needs that can adequately be served by the marketer. Otherwise, the marketer will not be able to provide satisfactory solutions and services to the target market. Reachability, similarity in needs with similar-sized groups, size, and profitability are also important but should not be the sole criteria for selecting a target market.

Question 19

How has the education and income gap between husbands and wives changed?

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Question 20

When the size and purchasing power of a target segment can be determined, the segment is ________.
A) measurable
B) accessible
C) substantial
D) differentiable
E) profitable

Accepted Answer

Measurable segments are those that can be quantified in terms of size and purchasing power. This enables marketers to determine the potential revenue that can be generated from the segment and to identify which marketing efforts would be most effective in reaching and appealing to the segment. Accessible segments can be reached through marketing efforts, substantial segments are large enough to be economically viable, differentiable segments have unique needs and characteristics that set them apart from other segments, and profitable segments are those that are able to generate revenue that exceeds the costs associated with targeting them. While all of these characteristics are important for effective segmentation, the ability to measure a segment's size and purchasing power is a foundational element that underpins all other aspects of segmentation strategy.

Quiz 7: Segmentation, Target Marketing, and Positioning