Question 1

The ideal goal for the marketer is to find a(n) group of customers whose needs they can easily and profitably meet.
A) quality
B) unmet
C) untapped
D) competing

Accepted Answer

Untapped refers to a group of customers who have not been targeted or served yet, which means there is potential for growth and profitability. Quality refers to a specific standard and is not related to finding a group of customers. Unmet refers to needs that have not been fully satisfied, which may not necessarily result in profitability. Competing refers to other businesses that are offering similar products or services, which can make it more difficult for the marketer to gain market share.

Question 2

Entrepreneurs may need to approximate Prizm and Vals data, because they are .
A) not available to the public
B) difficult to understand
C) expensive
D) not interesting to consumers

Accepted Answer

Prizm and Vals data are often expensive, which can make it challenging for entrepreneurs to access them directly.

Question 3

A service called Prizm posits that MBAs who live in New York have a lot more in common with their counterparts in London, Saö Paulo, and Tokyo, than they do with their neighbors in New York who are relatively less educated or wealthy. This is an example of what types of information being combined?
A) geographic and demographic
B) geographic and psychological
C) psychological and demographic
D) psychological and behavioral

Accepted Answer

The information being combined in this example is geographic (New York, London, Saö Paulo, Tokyo) and demographic (MBAs who are relatively educated and wealthy).

Question 4

A popular tool for segmenting that uses psychographic data, and that is based on the belief that one's attitudes and value system determine one's orientation to certain products and/or brands is called .
A) Experian
B) Vals
C) Mals
D) Prizm

Accepted Answer

VALS is a psychographic segmentation tool that groups consumers based on their values, attitudes, and lifestyles.

Question 5

Businesses plan for and interact differently with their larger clients than with their smaller ones. They assign more client service personnel and extend more relationship management efforts because these customers tend to be .
A) more profitable
B) cheaper
C) less profitable
D) higher quality

Accepted Answer

Larger clients are usually more profitable as they tend to place bigger orders and make larger purchases compared to smaller clients. Therefore, businesses assign more client service personnel and extend more relationship management efforts to maintain their business and ensure continued profitability.

Question 6

Some customers are known for their expertise and involvement in a category and are willing to share information and give advice, making them likely to generate word of mouth. These people are knows as market .
A) mayhems
B) mavens
C) sharers
D) sellers

Accepted Answer

The customers described fit the definition of "mavens," which are people who have expert knowledge and are enthusiastic about sharing it with others. None of the other choices accurately describe these customers.

Question 7

If one element of an iterative segmentation is a smart marketer, what is the other?
A) good company
B) quality products
C) good customer data
D) good managing

Accepted Answer

The other essential element of iterative segmentation is good customer data. A smart marketer must have access to accurate and relevant customer data to create effective segmentation strategies. Without good customer data, a marketer cannot properly target their audience or tailor their messaging, which can lead to wasted resources and ineffective campaigns. While having a good company, quality products, and good managing are all important factors in overall success, they are not specifically related to iterative segmentation.

Question 8

A(n) segment is always a tempting one for marketers to target because marketers assume that those customers can afford to purchase their goods or services.
A) international
B) upscale
C) small
D) large

Accepted Answer

An "upscale" segment refers to customers who have a higher income and are therefore assumed to be able to afford more expensive goods or services. Marketers are attracted to this group because they believe they have a higher likelihood of making a purchase.

Question 9

Sometimes segments can be highly profitable if the marketer pays attention and satisfies those customers' needs.
A) high income
B) large
C) low income
D) small

Accepted Answer

The answer of Sometimes segments can be highly profitable if...

Question 10

It's not unusual to see a segmentation study comprised of some usage variable (e.g., heavy vs. light users) or some attitudinal variable (e.g., positively inclined toward our brand vs. loyal to a competitor). What type of variable is it usually cross-tabbed with?
A) demographic
B) geographic
C) psychological
D) physical

Accepted Answer

Usage and attitudinal variables are often cross-tabbed with demographic variables such as age, gender, income, and education level to better understand the characteristics of each segment.

Question 11

Which of the following is a psychological factor?
A) attitude
B) education
C) age
D) country

Accepted Answer

Attitude is a psychological factor because it refers to a person's feelings, beliefs, and behaviors towards a particular object or situation, and is influenced by their emotions and experiences. Education, age, and country are social or demographic factors.

Question 12

Marketers identify segments best when iterating between two approaches. What are the two approaches?
A) customer, market
B) managerial, customer
C) managerial, company
D) market, company

Accepted Answer

The answer of Marketers identify segments best when iterating between...

Question 13

One behavioral segment of great importance to the marketer is the of the focal brand because it is relatively easy to communicate to this group.
A) past user
B) future user
C) current user
D) non-user

Accepted Answer

The behavioral segment of current users is the correct choice. They are already familiar with the brand and its benefits, making them more receptive to marketing messages. Additionally, marketing to this group can increase brand loyalty and repeat purchases.

Question 14

Which of the following is NOT a psychological factor?
A) affiliation
B) attitude
C) wants and needs
D) country

Accepted Answer

Country is not a psychological factor, whereas affiliation, attitude, and wants and needs all relate to psychological factors such as social psychology, cognitive psychology, and motivation.

Question 15

What does the 80:20 rule say?
A) Eighty percent of sales will come from twenty percent of customers.
B) For every 80 people who look at a product, 20 will buy it.
C) For every 80 customers, 20 will be repeated customers.
D) Eight percent of customers are only interested in 20% of available merchandise.

Accepted Answer

The 80:20 rule (also known as the Pareto Principle) states that roughly 80% of effects come from 20% of the causes. In business, this often means that 80% of sales come from 20% of customers.

Question 16

There is a rule of thumb that says it costs times more to acquire a new customer compared to maintaining a loyal one.
A) 3
B) 6
C) 9
D) 12

Accepted Answer

The rule of thumb states that it costs 6 times more to acquire a new customer compared to maintaining a loyal one.

Question 17

Some customers are currently using a competitor's brand or aren't even purchasers in a certain category at all. It is for marketers to identify these people.
A) difficult
B) easy
C) impossible
D) a bad idea

Accepted Answer

Identifying customers who are currently using a competitor's brand or aren't even purchasers in a certain category at all can be challenging, as this requires careful research and analysis of consumer behavior, preferences, and purchase patterns. However, with the right tools and strategies, it is possible to identify and target these customers effectively.

Question 18

The managerial perspective is important with respect to assessing whether serving a specific is consistent with overall corporate goals.
A) market segment
B) product
C) provider
D) competitor

Accepted Answer

The managerial perspective is concerned with the overall corporate goals and their alignment with specific market segments. Assessing whether serving a specific market segment is consistent with overall corporate goals is a key aspect of strategic decision-making. The other options (product, provider, competitor) may also be important considerations, but they are not as directly tied to the overall corporate goals as the choice of target market segment.

Question 19

Some customers are , caring about new developments in their category and seeking out new products.
A) opinion leaders
B) early adopters
C) market mavens
D) innovators

Accepted Answer

The answer of Some customers are , caring about new...

Question 20

What term refers to people who are trendy and fashionable in order to impress others and are often impulse buyers?
A) stretchers
B) stunners
C) survivors
D) strivers

Accepted Answer

Strivers are people who strive to impress others by being trendy and fashionable. They often make impulse purchases in order to keep up with the latest trends.

Quiz 3: Segmentation

The ideal goal for the marketer is to find a(n) group of customers whose needs they can easily and profitably meet.

Entrepreneurs may need to approximate Prizm and Vals data, because they are .

A service called Prizm posits that MBAs who live in New York have a lot more in common with their counterparts in London, Saö Paulo, and Tokyo, than they do with their neighbors in New York who are relatively less educated or wealthy. This is an example of what types of information being combined?

A popular tool for segmenting that uses psychographic data, and that is based on the belief that one's attitudes and value system determine one's orientation to certain products and/or brands is called .

Businesses plan for and interact differently with their larger clients than with their smaller ones. They assign more client service personnel and extend more relationship management efforts because these customers tend to be .

Some customers are known for their expertise and involvement in a category and are willing to share information and give advice, making them likely to generate word of mouth. These people are knows as market .

If one element of an iterative segmentation is a smart marketer, what is the other?

A(n) segment is always a tempting one for marketers to target because marketers assume that those customers can afford to purchase their goods or services.

Sometimes segments can be highly profitable if the marketer pays attention and satisfies those customers' needs.

It's not unusual to see a segmentation study comprised of some usage variable (e.g., heavy vs. light users) or some attitudinal variable (e.g., positively inclined toward our brand vs. loyal to a competitor) . What type of variable is it usually cross-tabbed with?

Which of the following is a psychological factor?

Marketers identify segments best when iterating between two approaches. What are the two approaches?

One behavioral segment of great importance to the marketer is the of the focal brand because it is relatively easy to communicate to this group.

Which of the following is NOT a psychological factor?

What does the 80:20 rule say?

There is a rule of thumb that says it costs times more to acquire a new customer compared to maintaining a loyal one.

Some customers are currently using a competitor's brand or aren't even purchasers in a certain category at all. It is for marketers to identify these people.

The managerial perspective is important with respect to assessing whether serving a specific is consistent with overall corporate goals.

Some customers are , caring about new developments in their category and seeking out new products.

What term refers to people who are trendy and fashionable in order to impress others and are often impulse buyers?