Question 1

In cross-market segmentation, marketers form segments of consumers who have similar needs and buying behaviours even though they are located in different countries.

Accepted Answer

Cross-market segmentation involves grouping consumers from different countries who share similar needs and buying behaviors, allowing marketers to target them effectively despite geographical differences.

Question 2

Cupcake Gourmet, a high-end bakery in Manhattan, segments its customers according to those who frequent their store regularly, those who visit infrequently, and those who have never visited. This is an example of usage-rate segmentation.

Accepted Answer

The answer of Cupcake Gourmet, a high-end bakery in Manhattan,...

Question 3

Market segments that can be effectively reached and served are said to be .
A) profitable
B) substantial
C) accessible
D) measurable
E) actionable

Accepted Answer

Market segments that can be effectively reached and served are described as "accessible," meaning they can be easily reached and communicated with through marketing efforts.

Question 4

Marketers typically limit their market segmentation analysis to a single variable in order to simplify the process.

Accepted Answer

Marketers usually analyze multiple variables such as demographics, psychographics, behavior, and geographic location when segmenting a market, in order to create more relevant and effective marketing strategies. Limiting the analysis to a single variable would not provide enough detail to accurately and effectively target a specific group of consumers.

Question 5

If men and women respond dissimilarly to the marketing efforts for a root beer-flavoured malt beverage, they are considered _ market segments.
A) observable
B) reachable
C) differentiable
D) measurable
E) accessible

Accepted Answer

Differentiable market segments are those that respond differently to marketing efforts, indicating distinct preferences or behaviors.

Question 6

Gold Class Electricals, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on .
A) multiple segmentation bases
B) behavioural variables
C) psychographic segmentation bases
D) geographic regions
E) demographic variables

Accepted Answer

Gold Class Electricals uses multiple segmentation bases as it targets market segments based on a combination of geographic (country), demographic (age, social class), behavioral (usage rate, benefits sought) factors.

Question 7

New communications technologies like satellite TV and social media are likely to eliminate the need for markets to be geographically segmented as clusters of countries.

Accepted Answer

With the rise of satellite TV and social media, businesses can now reach consumers around the world without the need for physical presence or market segmentation. This eliminates the need for markets to be geographically segmented as clusters of countries.

Question 8

Light users are often a small percentage of a company's market but account for a high percentage of total consumption.

Accepted Answer

Light users, by definition, consume products or services less frequently and in smaller quantities, so they typically account for a smaller percentage of total consumption compared to heavy users, who use products or services more frequently and in larger quantities.

Question 9

Producers of popular beverages often partner with global music channels to target consumers through a variety of promotional events and advertisements. This approach to marketing is referred to as segmentation.
A) age and life-cycle
B) occasions
C) intermarket
D) income
E) gender

Accepted Answer

Intermarket segmentation involves targeting consumers across different countries or regions who have similar needs or buying behaviors, often through global channels like music.

Question 10

Not all companies that use income segmentation target the affluent.

Accepted Answer

Income segmentation is often associated with targeting the affluent, but not all companies that use this strategy necessarily target wealthy consumers. Some companies may use income segmentation to target lower or middle-income consumers, depending on the products or services they offer.

Question 11

Countries can be segmented by cultural factors, grouping markets according to common languages, religions, values and attitudes, customs, and behavioural patterns.

Accepted Answer

Cultural segmentation involves grouping countries based on shared cultural characteristics such as language, religion, values, customs, and behaviors, which can influence consumer preferences and market dynamics.

Question 12

Tim Hortons relies heavily on which group of users to sustain its existing sales base?
A) first-time users
B) potential users
C) nonusers
D) ex-users
E) regular users

Accepted Answer

Regular users are crucial for sustaining the existing sales base as they provide consistent and repeat business.

Question 13

When the size, purchasing power, and profiles of a market segment can be determined, the market segment is said to be _.
A) actionable
B) observable
C) measurable
D) accessible
E) substantial

Accepted Answer

A market segment is considered measurable when its size, purchasing power, and profiles can be determined.

Question 14

Danko International is a multinational company that targets the BRICS countries (Brazil, Russia, India, China, and South Africa) because they're fast-growing developing economies and use to segment its world markets.
A) political factors
B) economic factors
C) legal factors
D) personality factors
E) cultural factors

Accepted Answer

Danko International targets BRICS countries based on their status as fast-growing developing economies, which relates to economic factors.

Question 15

Target and Kohl's have opened smaller-format stores designed to fit the needs of densely packed urban neighbourhoods. This is an example of geographic segmentation.

Accepted Answer

Geographic segmentation involves dividing a market based on location, and opening smaller-format stores in urban neighborhoods is a strategy to cater to the specific needs of those geographic areas.

Question 16

When segments are distinguishable and respond differently to different marketing mix elements, they are said to be _.
A) differentiable
B) actionable
C) substantial
D) measurable
E) accessible

Accepted Answer

Segments are considered differentiable when they respond differently to different marketing mix elements, indicating that they are distinct from one another.

Question 17

Geographic segmentation assumes that nations close to one another will have many common traits and behaviours.

Accepted Answer

Geographic segmentation is based on the assumption that people who live in the same geographic area share similar needs and wants. This is because they are exposed to the same climate, culture, and economic conditions.

Question 18

When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as .
A) differentiable
B) reachable
C) actionable
D) measurable
E) accessible

Accepted Answer

The answer of When an effective program can be designed...

Question 19

Business and consumer marketers use many of the same variables to segment their markets.

Accepted Answer

Business and consumer marketers use similar variables such as demographics, psychographics, geographic location, and behavior to segment their markets. However, business marketers may also use variables such as company size, industry, and buying process.

Question 20

Demographic factors are the most popular bases for segmenting customer groups.

Accepted Answer

Demographic factors such as age, gender, income, education level, and geographic location are commonly used to segment customer groups as they provide useful insights into consumer behavior and purchasing habits.

Quiz 6: Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

In cross-market segmentation, marketers form segments of consumers who have similar needs and buying behaviours even though they are located in different countries.

Cupcake Gourmet, a high-end bakery in Manhattan, segments its customers according to those who frequent their store regularly, those who visit infrequently, and those who have never visited. This is an example of usage-rate segmentation.

Market segments that can be effectively reached and served are said to be .

Marketers typically limit their market segmentation analysis to a single variable in order to simplify the process.

If men and women respond dissimilarly to the marketing efforts for a root beer-flavoured malt beverage, they are considered _ market segments.

Gold Class Electricals, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on .

New communications technologies like satellite TV and social media are likely to eliminate the need for markets to be geographically segmented as clusters of countries.

Light users are often a small percentage of a company's market but account for a high percentage of total consumption.

Producers of popular beverages often partner with global music channels to target consumers through a variety of promotional events and advertisements. This approach to marketing is referred to as segmentation.

Not all companies that use income segmentation target the affluent.

Countries can be segmented by cultural factors, grouping markets according to common languages, religions, values and attitudes, customs, and behavioural patterns.

Tim Hortons relies heavily on which group of users to sustain its existing sales base?

When the size, purchasing power, and profiles of a market segment can be determined, the market segment is said to be _.

Danko International is a multinational company that targets the BRICS countries (Brazil, Russia, India, China, and South Africa) because they're fast-growing developing economies and use to segment its world markets.

Target and Kohl's have opened smaller-format stores designed to fit the needs of densely packed urban neighbourhoods. This is an example of geographic segmentation.

When segments are distinguishable and respond differently to different marketing mix elements, they are said to be _.

Geographic segmentation assumes that nations close to one another will have many common traits and behaviours.

When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as .

Business and consumer marketers use many of the same variables to segment their markets.

Demographic factors are the most popular bases for segmenting customer groups.