Question 1

Market segmentation attempts to isolate traits that distinguish a certain group of consumers from the overall market.

Accepted Answer

Market segmentation involves dividing a broad target market into subsets of consumers who have common needs and priorities, and then designing and implementing strategies to target them. This process indeed aims to identify and isolate traits that distinguish certain groups from the overall market to better meet their needs.

Question 2

Division of the total market into smaller, relatively homogeneous groups is known as market optimization.

Accepted Answer

This process is known as market segmentation, not market optimization. Market segmentation involves dividing a broad target market into subsets of consumers who have common needs and priorities, and then designing and implementing strategies to target them.

Question 3

Families, bachelors, and retirees could be considered separate market segments for a company promoting travel packages.

Accepted Answer

Market segmentation involves dividing a broad target market into subsets of consumers who have common needs and priorities. Families, bachelors, and retirees likely have different preferences and requirements for travel, making them distinct market segments for travel packages.

Question 4

Automobile manufacturers and food processing companies typically segment a particular geographic region based on the same factors.

Accepted Answer

Automobile manufacturers often segment geographic regions based on factors like income levels, population density, and vehicle ownership rates, while food processing companies may focus more on dietary preferences, climate (affecting local food production), and cultural food traditions. These differing priorities mean they typically do not use the same segmentation factors.

Question 5

Not-for-profit organizations practice market segmentation.

Accepted Answer

Not-for-profit organizations, like their for-profit counterparts, use market segmentation to better understand and cater to specific groups within their target audience, allowing for more effective allocation of resources and tailored communication strategies.

Question 6

Firms often purchase legal services from external consultants. However, as this does not directly contribute to the firm's production activities, legal services cannot be considered a business product.

Accepted Answer

Legal services, even though not directly involved in production, support the firm's operations and decision-making, thus can be considered a business product.

Question 7

Division of an overall market into homogeneous groups based on their locations constitutes socioeconomic segmentation.

Accepted Answer

Socioeconomic segmentation divides the market based on social and economic factors such as income, education, and occupation, not location. Geographic segmentation is what divides the market based on location.

Question 8

Since rubber purchased by Goodyear is utilized to manufacture tires that are ultimately used by consumers for their automobiles, rubber is a consumer product for Goodyear.

Accepted Answer

Rubber for Goodyear is a raw material used in the production process, making it an industrial product, not a consumer product. Consumer products are finished goods sold to and used by end consumers.

Question 9

The target market for a product is the specific segment of consumers most likely to purchase that particular product.

Accepted Answer

The target market is defined as the specific group of consumers at whom a company aims its products and services, based on factors like demographics, behaviors, and various characteristics. This group is considered most likely to buy the product.

Question 10

Marketers rarely encounter differences among members of a target group, as they segment potential consumers into homogeneous groups.

Accepted Answer

Marketers often encounter differences among members of a target group, despite segmentation efforts to create homogeneous groups, because individual preferences and behaviors can vary widely within any defined segment.

Question 11

A market includes any person or entity that has the willingness and the purchasing power to buy a product.

Accepted Answer

A market is defined by the presence of potential buyers who have both the desire and the financial means to purchase a product or service.

Question 12

Typically, a single marketing mix strategy attracts all sectors of a market.

Accepted Answer

A single marketing mix strategy usually does not attract all sectors of a market because different segments have different needs, preferences, and behaviors.

Question 13

Business products contribute directly or indirectly to the production of other goods and services for resale.

Accepted Answer

Business products are items used to facilitate production, operations, or resale, rather than being sold directly to the end consumer for personal use. They contribute to the creation or operation of goods and services intended for resale.

Question 14

A hotel purchases towels for use in its rooms. In this context, these towels will be considered business products.

Accepted Answer

In this context, the towels are purchased for use in the hotel's operations, making them business products because they are not bought for personal use but for the business to provide services to its customers.

Question 15

Geographic indicators such as job growth give useful guidance to marketers, depending on the type of products they sell.

Accepted Answer

Geographic indicators like job growth can influence consumer purchasing power and confidence, which in turn affects demand for various products, making such data valuable for marketers in targeting and positioning their products appropriately.

Question 16

Detergent packets purchased by a leading laundry service are considered business products.

Accepted Answer

Detergent packets purchased by a leading laundry service are considered business products because they are bought for the purpose of conducting business, specifically to provide laundry services to their customers.

Question 17

Raw silk is an example of a consumer product.

Accepted Answer

Raw silk is considered an industrial product because it is used as a raw material in the manufacturing of products like silk fabric, rather than being bought directly by the final consumer.

Question 18

Products bought by ultimate customers for personal use are known as consumer products.

Accepted Answer

Consumer products are goods bought and used by consumers for personal or household purposes, not for manufacturing or resale.

Question 19

Items can be classified as business products, not because of what they are, but because of how they will be used.

Accepted Answer

Items are classified as business products based on their intended use in the production of other goods and services, for resale, or for use in the operations of a business, rather than their inherent characteristics.

Question 20

Firms must attempt to group consumers according to the presence or absence of those factors that affect purchase decisions.

Accepted Answer

This process is known as market segmentation, which involves dividing a broad target market into subsets of consumers who have common needs, interests, and priorities, and then designing and implementing strategies to target them. Grouping consumers based on factors affecting purchase decisions allows firms to more effectively meet the specific needs of different market segments.

Quiz 9: Market Segmentation, Targeting, and Positioning