Question 1

Carlos has identified four potential market segments for his Rent-A-Nurse service. He will now compare the segments to see if they are distinct from each other. Carlos is evaluating whether or not each segment is
A) identifiable.
B) responsive.
C) profitable.
D) reachable.
E) substantial.

Accepted Answer

Carlos is trying to determine if each potential market segment is identifiable or distinct from each other.

Question 2

Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power. Greta is concerned with whether the segment is
A) substantial.
B) responsive.
C) profitable.
D) reachable.
E) identifiable.

Accepted Answer

Greta's concern about the market segment being too small and having too little income to have sufficient buying power directly relates to whether the segment is substantial. A substantial market segment is one that is large enough and has enough purchasing power to be profitable.

Question 3

With access to the Internet nearly universal in the United States, many potential market segments have become more
A) substantial.
B) perceptive.
C) identifiable.
D) reachable.
E) quantifiable.

Accepted Answer

With the widespread availability of the Internet, companies can reach a larger audience and more easily target specific market segments. Therefore, the best choice would be "reachable."

Question 4

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to
A) categorize each market segment by consumer demographics.
B) establish her overall objectives.
C) decide on a targeting strategy.
D) develop a positioning strategy.
E) evaluate the attractiveness of each segment.

Accepted Answer

The next step for Karen is to evaluate the attractiveness of each segment. This will help her determine the potential profitability and feasibility of each segment, and ultimately decide which segment(s) to target. Once she has evaluated the attractiveness of each segment, she can then move on to developing a targeting and positioning strategy, and establishing her overall objectives. Therefore, option E is the best choice.

Question 5

Marketers often create a special marketing mix for loyalty segments because these segments are
A) too large to service with ordinary targeting.
B) difficult to identify.
C) costly to acquire.
D) generally profitable.
E) constantly changing.

Accepted Answer

Loyalty segments are made up of customers who have already shown a preference for a particular brand, product or service, hence these segments are generally profitable. Marketers typically create special marketing mixes to strengthen the relationship with these customers and encourage repeat business, leading to even greater profitability.

Question 6

Kim's Kayak Tours initially identified active retirees living in the retirement community nearby as one of its target markets. Kim then tailored her service and marketing message to the interests and schedules of that audience. Kim initially used ________ segmentation and then used ________ segmentation.
A) micromarketing; loyalty
B) lifestyle; macromarketing
C) geodemographic; lifestyle
D) geographic; loyalty
E) behavioral; geodemographic

Accepted Answer

The initial segmentation of active retirees living in the nearby retirement community is an example of geodemographic segmentation, which involves identifying segments based on where people live. Later tailoring the service and marketing message to the interests and schedules of that audience is an example of lifestyle segmentation, which involves identifying segments based on attitudes, values, interests, and activities.

Question 7

When Talbots, an upscale women's clothing store, tries to portray an image of "traditional, conservative, and with good taste," it is appealing to its target market's
A) lifestyle.
B) geodemographics.
C) demographics.
D) loyalty.
E) Tapestry segment.

Accepted Answer

Talbots is appealing to its target market's lifestyle by portraying an image that aligns with the values and interests of its customers, which in this case are "traditional, conservative, and with good taste." This approach is about connecting with how the target market lives and what they value in their daily lives, rather than focusing on their location, age, or loyalty to the brand.

Question 8

While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do not help marketers determine
A) how old their customers are.
B) what their customers need.
C) where their customers live.
D) which customers have young children.
E) what income brackets their customers are in.

Accepted Answer

While demographic and geographic segmentation can provide information on age, location, and income, they do not directly provide insight into the specific needs of customers. Marketers must conduct further research to determine what their customers require from their products or services.

Question 9

When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be ________ to the company's offerings.
A) responsive
B) perceptive
C) identifiable
D) reachable
E) quantifiable

Accepted Answer

The blank must be filled with a word that describes how consumers would react to Starbucks's offerings. "Responsive" fits this context as it means being willing to react to something or respond to something. Thus, the sentence means that critics did not think consumers would be willing to pay $4 for coffee at Starbucks.

Question 10

One of the reasons marketers use loyalty segmentation is
A) the high cost of finding new customers.
B) government tax incentives.
C) accounting difficulties associated with identifying new customers.
D) rapid population increases.
E) the failure of micromarketing as a workable strategy.

Accepted Answer

Loyalty segmentation focuses on identifying and targeting customers who have a high level of loyalty to a brand or company. By focusing on retaining these existing customers, marketers can avoid the high costs associated with acquiring new customers through advertising and other marketing efforts.

Question 11

College students can be a less ________ market segment because students' media habits are quite diverse and firms might have to use a wide variety of media to attract this segment.
A) substantial
B) perceptive
C) identifiable
D) reachable
E) quantifiable

Accepted Answer

The word "reachable" best fits the blank as it implies that firms may have to use a variety of media to be able to reach college students, whose media habits are diverse. Option A, "substantial" implies that there are many college students, which may not necessarily be the case. Option B, "perceptive" implies that college students are sophisticated media consumers, which can be true but is not necessarily related to the sentence. Option C, "identifiable" implies that college students can be easily identified, which is not a concern in this sentence. Option E, "quantifiable" implies that college students can be measured, which is not relevant to the sentence.

Question 12

Retail store chains often use ________ data to tailor each store's assortment to the preferences of the local community.
A) geodemographic
B) benefit
C) psychographic
D) loyalty
E) geographic

Accepted Answer

Geodemographic data combines geographic and demographic information to create a profile of a local community's characteristics including lifestyle, values, and behaviors. This information can be used by retail store chains to tailor their product assortment to the specific preferences of each local community.

Question 13

When airlines created frequent-flyer programs, they were among the first retailers to embrace
A) geographic segmentation.
B) education segmentation.
C) lifestyle segmentation.
D) convenience segmentation.
E) loyalty segmentation.

Accepted Answer

Frequent-flyer programs are based on rewarding customer loyalty, which falls under loyalty segmentation.

Question 14

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate the attractiveness of each segment by considering whether those segments are all of the following except
A) substantial.
B) responsive.
C) profitable.
D) reachable.
E) realistic.

Accepted Answer

The four criteria for evaluating market segment attractiveness are substantial, responsive, profitable, and reachable. "Realistic" is not one of these criteria.

Question 15

Ryan wants to sell personal website services to American soldiers in Afghanistan. Because of the difficulty of communicating with people in a war zone, Ryan may have trouble with this segment not being
A) substantial.
B) perceptive.
C) identifiable.
D) reachable.
E) quantifiable.

Accepted Answer

If soldiers in Afghanistan are difficult to reach due to communication barriers, Ryan may have trouble reaching them to sell his website services, making this segment not reachable.

Question 16

When Ron complained to his bank's branch manager about the unprofessional behavior of one teller, the branch manager added a code into his accounts alerting all tellers that Ron was a valued, long-time customer and to provide whatever service he requests. The branch manager is using ________ segmentation to retain Ron as a customer.
A) benefit
B) geodemographic
C) psychographic
D) loyalty
E) geographic

Accepted Answer

Loyalty segmentation is used to target customers who have already shown loyalty to the brand or company. In this case, the branch manager has added a code to Ron's account to ensure that he receives great service and feels valued as a long-time customer. This is an example of using loyalty segmentation to retain customers.

Question 17

Geodemographic segmentation can be particularly useful for ________, because customers typically patronize stores close to their neighborhood.
A) Internet marketers
B) wholesalers
C) retailers
D) consumer goods manufacturers
E) cable TV networks

Accepted Answer

Geodemographic segmentation divides a population into groups based on geographic and demographic characteristics. Retailers can use this type of segmentation to target customers in specific neighborhoods or regions who are more likely to shop at their stores.

Question 18

For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm's marketing mix. In other words, the market segment must be
A) substantial.
B) perceptive.
C) identifiable.
D) reachable.
E) responsive.

Accepted Answer

A successful segmentation strategy requires customers in the segment to react similarly and positively to the firm's marketing mix. This means that the segment must not only be identifiable and reachable, but also responsive to the firm's marketing efforts. If the segment is not responsive, then the marketing efforts will not be effective in generating the desired response from customers. Therefore, the best choice is E, responsive.

Question 19

Talbots, an upscale women's clothing store, targets college-educated women between 35 and 55 years old with average household income of $75,000 or more. This is a form of ________ segmentation.
A) benefit
B) geodemographic
C) psychographic
D) demographic
E) geographic

Accepted Answer

The segmentation strategy described is based on demographic factors such as age, education level, and income. Therefore, it is a form of demographic segmentation.

Question 20

Marketers often employ a combination of segmentation methods, using ________ to identify and target their customers, and ________ to design products and messages to appeal to them.
A) loyalty segmentation; demographics
B) undifferentiated targeting; differentiated targeting
C) loyalty segmentation; geodemographics
D) demographics and geography; lifestyle or benefit segmentation
E) lifestyle segmentation; geographic segmentation

Accepted Answer

The best choice is D because it accurately reflects the commonly used segmentation methods. Marketers often use demographics and geography to identify and target their customers, as these factors provide clear insights into consumer behaviors and preferences. They then use lifestyle or benefit segmentation to design products and messages that will appeal to their target audiences. This approach allows marketers to create tailored strategies that speak directly to the needs and desires of their customers.

Quiz 9: Segmentation, Targeting, and Positioning

Carlos has identified four potential market segments for his Rent-A-Nurse service. He will now compare the segments to see if they are distinct from each other. Carlos is evaluating whether or not each segment is

Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power. Greta is concerned with whether the segment is

With access to the Internet nearly universal in the United States, many potential market segments have become more

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to

Marketers often create a special marketing mix for loyalty segments because these segments are

Kim's Kayak Tours initially identified active retirees living in the retirement community nearby as one of its target markets. Kim then tailored her service and marketing message to the interests and schedules of that audience. Kim initially used segmentation and then used segmentation.

When Talbots, an upscale women's clothing store, tries to portray an image of "traditional, conservative, and with good taste," it is appealing to its target market's

While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do not help marketers determine

When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be ________ to the company's offerings.

One of the reasons marketers use loyalty segmentation is

College students can be a less ________ market segment because students' media habits are quite diverse and firms might have to use a wide variety of media to attract this segment.

Retail store chains often use ________ data to tailor each store's assortment to the preferences of the local community.

When airlines created frequent-flyer programs, they were among the first retailers to embrace

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate the attractiveness of each segment by considering whether those segments are all of the following except

Ryan wants to sell personal website services to American soldiers in Afghanistan. Because of the difficulty of communicating with people in a war zone, Ryan may have trouble with this segment not being

Geodemographic segmentation can be particularly useful for ________, because customers typically patronize stores close to their neighborhood.

For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm's marketing mix. In other words, the market segment must be

Talbots, an upscale women's clothing store, targets college-educated women between 35 and 55 years old with average household income of $75,000 or more. This is a form of ________ segmentation.

Marketers often employ a combination of segmentation methods, using to identify and target their customers, and to design products and messages to appeal to them.