Question 1

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

Accepted Answer

Automobile manufacturers might segment a geographic region based on factors like income levels, population density, and vehicle ownership rates, while food processing companies might consider factors such as dietary preferences, climate (affecting local produce availability), and population demographics (age, culture). These differing priorities reflect the unique market considerations and consumer needs relevant to each industry.

Question 2

Demographic segmentation was, at one time, the most common type of market segmentation method. However, technological advances have made it less common today than other forms of market segmentation.

Accepted Answer

Demographic segmentation remains one of the most common and fundamental types of market segmentation used today, alongside newer methods enhanced by technological advances. It continues to be widely used due to its simplicity and effectiveness in targeting key consumer groups based on age, gender, income, etc.

Question 3

The Canadian population is distributed uniformly across the country.

Accepted Answer

The Canadian population is heavily concentrated within 200 kilometers of the U.S. border, with vast areas of the north and interior being sparsely populated.

Question 4

Dividing an overall market into homogeneous groups based on gender and age would constitute demographic segmentation.

Accepted Answer

Demographic segmentation involves dividing a market into groups based on demographic characteristics such as age, gender, income, education, occupation, etc. Therefore, dividing an overall market into groups based on gender and age is an example of demographic segmentation.

Question 5

Montreal is the largest city in Canada in terms of population due to the large number of immigrants who have settled there.

Accepted Answer

Toronto is the largest city in Canada in terms of population, not Montreal.

Question 6

The geographic segmentation is useful because consumers in a specific geographic location will make the same buying decisions.

Accepted Answer

Geographic segmentation is useful for tailoring marketing strategies to different regions, but it doesn't guarantee that all consumers in a specific location will make the same buying decisions due to individual preferences and needs.

Question 7

Demographic segmentation is also sometimes called psychographic segmentation.

Accepted Answer

Demographic segmentation involves dividing a market into segments based on variables such as age, gender, income, occupation, and education, while psychographic segmentation considers consumers' lifestyles, interests, attitudes, and values.

Question 8

Currently, the two largest cities in the world are Shanghai, China and Mumbai, India.

Accepted Answer

Shanghai and Mumbai are the two largest cities in the world by population.

Question 9

Firms define core regions as the locations where they obtain between 40 and 80 percent of their sales.

Accepted Answer

Firms often define core regions as areas where they achieve a significant portion of their sales, typically between 40 and 80 percent, indicating a strong market presence and customer base.

Question 10

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

Accepted Answer

Job growth can indicate an increase in disposable income and an expanding market, providing a potential opportunity for companies to market their products to a larger audience. However, the relevance of this information varies depending on the type of product being sold and the target audience.

Question 11

One of the main sources for demographic data in Canada is Statistics Canada.

Accepted Answer

Statistics Canada is the national statistical office and the main source for detailed demographic data in Canada.

Question 12

To be considered a census agglomeration (CA) the geographical area must have a population greater than 100 000.

Accepted Answer

A census agglomeration (CA) must have a core population of at least 10,000, not 100,000.

Question 13

Geographic information systems (GIS) simplify the job of analyzing marketing information by placing data in a spatial format. The result is a map overlaid with digital data about consumers in a given area.

Accepted Answer

GIS allows for the visualization of data in a spatial context, making it easier to analyze patterns, trends, and relationships related to marketing information by overlaying digital consumer data on maps.

Question 14

Geographic segmentation provides useful distinctions when regional preferences or needs exist.

Accepted Answer

Geographic segmentation divides the market into different geographical units such as nations, states, regions, cities, or neighborhoods. This is useful when a product or service caters to specific regional preferences or needs, such as climate or culture.

Question 15

Application of the geographic information systems may prove to be a sound investment for companies because it allows them to better plan the logistics of delivery, transportation, and warehousing, ensuring that valuable capital is not tied up in inefficiently placed assets.

Accepted Answer

Geographic Information Systems (GIS) enable companies to analyze and visualize spatial data for better decision-making regarding logistics, transportation, and warehousing. This leads to more efficient asset placement and can prevent unnecessary capital expenditure, making it a sound investment.

Question 16

A census metropolitan area (CMA) is considered to be the largest government classification of urban data in Canada.

Accepted Answer

A census metropolitan area (CMA) is the largest government classification of urban data in Canada, as it includes the core urban area and its surrounding rural areas.

Question 17

Sociologists attribute differences in needs and wants between age groups to the cohort effect.

Accepted Answer

The cohort effect refers to the influence that being a part of a group of people born around the same time has on the attitudes, needs, and wants of that group, which can differ significantly from those of other age groups due to varying experiences and social contexts.

Question 18

Singles, families, and retirees could be considered 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. Singles, families, and retirees represent distinct groups with different travel preferences and requirements, making them relevant market segments for travel packages.

Question 19

Residence location within an area is an important geographic segmentation variable.

Accepted Answer

Residence location is a key geographic segmentation variable because it helps marketers tailor their strategies based on the specific preferences, needs, and cultural aspects of consumers living in different areas.

Question 20

Home Depot introduced a new line of riding lawn mowers. The company decided to focus more on people living in the suburbs than those in the city because a survey showed the former category to be more inclined toward gardening. This is an example of a demographic segmentation by Home Depot.

Accepted Answer

The answer of Home Depot introduced a new line of...

Quiz 9: Marketing Segmentation, Targeting, and Positioning