Question 1

At a Hallmark store you can find several different product lines of greeting cards, including Fresh Ink, Nature's Sketchbook, Shoebox, Maxine, Mahogany, and Tree of Life cards - all cards made by Hallmark for sale in its stores and intended to appeal to different target markets. The Shoebox line sells for $0.99, which is a significantly lower price than some of the other Hallmark brands. The Shoebox line is designed to appeal to people on limited budgets. This is an example of ________segmentation.

Accepted Answer

The Shoebox line's lower price point indicates that it is intended to appeal to people on limited budgets, which is a characteristic of demographic segmentation - specifically, segmentation based on income or socio-economic status.

Question 2

Nike recently debuted King James XVII shoes (Lebron James)with a price tag of $200. The shoes arrived at shoe stores in a metallic silver briefcase instead of a shoebox. Nike is targeting a market it identifies as "keepers," people who buy the Shoes, keep them under their bed, and when friends come over, show them the shoes. Selling to the market segment called "keepers" probably means that Nike is using which of the following types of buying situation variables to segment this market?

Accepted Answer

The answer of Nike recently debuted King James XVII shoes...

Question 3

Which of the following statements demonstrates the formation of a segment based on usage rate?

Accepted Answer

The answer of Which of the following statements demonstrates the...

Question 4

Nike recently debuted King James XVII shoes (Lebron James)with a price tag of $200. The shoes arrived at shoe stores in a metallic silver briefcase instead of a shoebox. Nike is targeting a market it identifies as "keepers," people who buy the Shoes, keep them under their bed, and when friends come over, show them the shoes. Selling to the market segment called "keepers" probably means that Nike is using which of the following types of customer characteristic variables to segment this market?

Accepted Answer

Nike is using psychographics to segment this market, as they are targeting people who have an emotional attachment to their shoes and are likely to keep them as a symbol of their personal style and identity. This is a psychographic characteristic, as it relates to an individual's attitudes, interests, and values, rather than their demographics (age, income, etc.), benefits sought, or usage patterns.

Question 5

Todd Harris and Associates, a New York sales promotion agency, discovered from analysis of its files that one-fifth of its clients accounted for more than three-quarters of its fees and commissions. This is an example of what classic concept?

Accepted Answer

This is the 80/20 rule, also known as the Pareto principle, which states that 80% of results come from 20% of causes. In this case, it means that 80% of Todd Harris and Associates' fees and commissions come from only 20% of its clients.

Question 6

A national car rental firm targets 50 percent of its advertising to salespeople who travel more than 1,000 miles per week. Its market is segmented by:

Accepted Answer

The national car rental firm is segmenting its market based on usage, specifically targeting salespeople who travel more than 1,000 miles per week. Demographics, family size, and benefits offered are not relevant factors in this segmentation.

Question 7

Which segmentation factor will members of a local hunting, fishing, and trapping association be characterized as?

Accepted Answer

Members of a local hunting, fishing, and trapping association can be segmented based on their psychographic variables, such as their interests, values, and lifestyles related to hunting, fishing, and trapping.

Question 8

Pepperidge Farm has developed new thick-sliced French Toast Swirl bread. The company realizes most people who eat toast for breakfast, see it as a side dish. Pepperidge Farm's ads advise consumers of this bread that this new product "doesn't go with breakfast. It is breakfast." Which segmentation variable is being used in this example?

Accepted Answer

The segmentation variable being used in this example is behavioural, as the ad is targeting consumers based on their behaviour of viewing toast as a side dish for breakfast.

Question 9

Many companies have cut travel budgets, so that very few business people are authorized to fly first class. Despite the shrinking pool of business-class travelers, British Airways (BA)has grown market share for its transatlantic business class by offering greater comfort. Promotions to frequent fliers stress that passengers can sleep in fully reclining seats and arrive refreshed to carry out a full day's schedule. BA's
Strategy is an example of ___________segmentation.

Accepted Answer

The strategy of promoting the comfort and benefits of the fully reclining seats to frequent fliers is an example of behavioral segmentation, as it focuses on the behavior and preferences of a specific group of customers (frequent business travelers) rather than demographic or psychographic characteristics.

Question 10

Golden Gallon convenience stores sell Golden Gallon brand milk. Every time a customer purchases a gallon of this brand and gives the clerk his or her Golden Gallon card, the card is punched. When the customer has accumulated enough marks, then he or she gets a free gallon of milk. This is an example of segmentation by:

Accepted Answer

This is an example of usage-based segmentation, in which customers who frequently purchase Golden Gallon brand milk are rewarded for their loyalty.

Question 11

A local grocery store determines that the average consumer visits the store three times during a seven-day-period. What did the grocery store determine?

Accepted Answer

The grocery store determined the usage rate, which is the number of times a consumer uses or buys a product within a specific period. The consumption rate refers to the quantity of a product used or consumed within a specific period of time. Trial refers to a customer's first purchase or use of a product, while an inventory refers to the stock of goods or materials kept for sale or use.

Question 12

Pearl Izumi offers three different lines of triathlon gear: Select, Elite, and Pro. Which segmentation characteristic would likely cause a beginner triathlete to purchase a product from the Pro line?

Accepted Answer

Behavioral segmentation, which includes factors like user status or readiness to buy, could lead a beginner triathlete to purchase from the Pro line if they believe it will significantly enhance their performance or if they aspire to quickly reach a higher skill level.

Question 13

Many families today hold potluck meals during holidays or special events. Participants bring casseroles, vegetables, breads, and desserts and all share the food. It is easy to forget to take the bowl that you brought to the dinner back home with you. Reynolds responded to this problem by creating Pot Lux cookware, attractive and inexpensive
Disposable dishes for transporting food. Reynolds has recognized how to use ______ variables to segment its market.

Accepted Answer

The use of Pot Lux cookware addresses a specific behaviour - the need for a disposable dish for potluck meals - and therefore utilizes behavioural variables to segment the market.

Question 14

A fast food chain has determined that for every $1 spent by a 'light user,' each 'heavy user' spends $5. Which statement best describes this situation?

Accepted Answer

This situation is describing the Pareto Principle, also known as the 80/20 rule, which states that 80% of a firm's sales come from 20% of its customers. In this case, the 'heavy users' make up the 20% of customers who generate 80% of the chain's sales, while the 'light users' make up the remaining 80% of customers who only generate 20% of the sales.

Question 15

Miller beer once called itself "the champagne of bottled beer," and ads showed elegant women in long white dresses sipping beer from crystal goblets. Then the company discovered that most beer is consumed by men 18 to 30 years of age, and it changed
The thrust of its marketing message to reflect the more productive target market. What segmentation variable has it focused on with the newer approach?

Accepted Answer

The segmentation variable that Miller beer has focused on with its newer approach is usage rate, specifically targeting men aged 18 to 30 who are the heaviest consumers of beer.

Question 16

Post Grape-Nuts cereal has been marketed since early 20th century. Its market share has been steadily declining as consumers began associating it with something their grandfather ate. Post recently launched a campaign to increase consumption of the cereal by inviting consumers to try the crunchy cereal on top of their yogurt, their salad, or their bowl of soup as a delicious addition. Post was trying to convince people who had never tried the cereal to try, and people who were familiar with the product to use it in a variety of different ways. Post is using which segmentation variable to
Define its target market?

Accepted Answer

By targeting consumers who have never tried the cereal before and suggesting new and different ways to use it, Post is using usage segmentation to define its target market.

Question 17

Many people are unaware that an individual can preplan his or her funeral so grieving relatives will not have to. Funeral homes trying to reach this market segment should use primarily___________ segmentation.

Accepted Answer

Psychographic segmentation focuses on understanding the attitudes, values, beliefs, and interests of a target market. In this case, funeral homes can use psychographic segmentation to reach individuals who value the importance of preplanning their funeral to relieve the burden on their grieving relatives. This approach allows funeral homes to tailor their marketing efforts and messaging to this specific group of individuals who share a common mindset, rather than using general demographic or geographic criteria.

Question 18

The headline of the ad for the Sleep Number bed by Select Comfort read, "5 Reasons Why You'll Sleep Better on a Sleep Number Bed." From this information, you know that Select Comfort uses________ segmentation.

Accepted Answer

The use of "5 Reasons Why You'll Sleep Better" suggests that Select Comfort is using behavioral segmentation, targeting individuals based on their behaviors or attitudes towards getting a good night's sleep.

Question 19

Magazines like Fitness, Field & Stream, Golf Digest, and Health all use a ________ segmentation strategy.

Accepted Answer

These magazines target specific interests, lifestyles, or personality characteristics, which aligns with psychographic segmentation.

Question 20

The slogan for General Foods International Coffee is "It Stirs the Soul." General Foods was trying to get customers to think about how drinking a cup of rich-flavoured coffee is indulgent. Based on that trademarked slogan, you should realize the product is using a ________segmentation strategy.

Accepted Answer

The slogan "It stirs the soul" suggests that the brand is targeting customers based on their behaviour and emotions towards the product rather than their socioeconomic status or geographic location. This implies that the brand is using a behavioural segmentation strategy.

Quiz 9: Market Segmentation, Targeting, and Positioning