Question 1

What are the two most commonly used demographic variables used by marketers?
A)age and gender
B)gender and income
C)education and family size
D)family size and age
E)age and income

Accepted Answer

The answer of What are the two most commonly used...

Question 2

Demographic segmentation divides markets by
A)geographic location.
B)characteristics such as age, gender, and income.
C)characteristics such as loyalty and price sensitivity.
D)consumer attitudes.
E)psychological traits.

Accepted Answer

The answer of Demographic segmentation divides markets by
A)geographic location.
B)characteristics such...

Question 3

Which of the following is not one of the broad segmentation bases outlined in your text that can be used to segment a market?
A)demand
B)demographic
C)behavioral
D)geographic
E)psychographic

Accepted Answer

Demand is not listed as one of the broad segmentation bases in typical marketing texts. The common bases for segmenting a market include demographic, behavioral, geographic, and psychographic criteria. These are used to categorize consumers into groups with similar needs, wants, or characteristics. Demand, while related to these factors, is not a standalone segmentation base but rather an outcome of understanding and applying the segmentation bases effectively.

Question 4

To be effective, market segmentation should create market segments that rate favorably on various criteria. Specifically, market segmentation should create market segments that are measurable, differentiable, accessible, actionable, and
A)specific.
B)variable.
C)isolated.
D)marketable.
E)substantial.

Accepted Answer

The answer of To be effective, market segmentation should create...

Question 5

Repositioning refers to resegmenting a target market that failed to produce enough buyers for a product.
A)mass marketing.
B)market segmentation.
C)market fragmentation.
D)concept testing.
E)positioning.

Accepted Answer

The answer of Repositioning refers to resegmenting a target market...

Question 6

An auto insurance company segmented its market by both gender and age and designed different marketing campaigns to appeal to both. In the end, both segments responded the same to the different marketing strategies, in part, because both segments are required to have auto insurance. This firm failed to understand the criteria of market segments needing to be
A)substantial.
B)accessible.
C)differentiable.
D)measurable.
E)actionable.

Accepted Answer

The answer of An auto insurance company segmented its market...

Question 7

A successful positioning statement should include the competitive advantages of the product.

Accepted Answer

A successful positioning statement should clearly articulate the unique value or competitive advantages of the product, differentiating it from competitors in the market.

Question 8

When a firm is reasonably certain that its marketing mix can inform consumers about the product, how it adds value to the consumer, and ultimately how to purchase it, then the firm rates favorably on which market segment criteria?
A)actionable
B)differentiable
C)substantial
D)measurable
E)accessible

Accepted Answer

The answer of When a firm is reasonably certain that...

Question 9

A defined in your text, market segmentation involves dividing a larger market into smaller market segments based on
A)shopping habits.
B)geographic region.
C)meaningfully shared characteristics.
D)potential interest in a product.
E)available sales force.

Accepted Answer

The answer of A defined in your text, market segmentation...

Question 10

A firm that uses a price-quality relationship to highlight its competitive advantage will negotiate discounts from wholesalers and keep distribution costs low so it can pass the savings on to its customers.

Accepted Answer

The firm's strategy is to use its price-quality relationship to negotiate discounts from wholesalers and keep distribution costs low. This allows the firm to pass the savings on to its customers, giving it a competitive advantage.

Question 11

When it comes to criteria for segmenting markets, it is important that the size and purchasing power of a market segment should be clearly identified. In other words, it should be
A)differentiable.
B)measurable.
C)accessible.
D)identifiable.
E)actionable.

Accepted Answer

The answer of When it comes to criteria for segmenting...

Question 12

It has been Tara's dream to open a bakery, and while she has experience in making all types of baked goods, she always gets rave reviews for her hand-decorated cakes. So, rather than open a bakery that offers a wide variety of baked goods, Tara has decided to open a specialty cake shop to cater to that market only. This is an example of
A)market fragmentation.
B)repositioning.
C)market segmentation.
D)limited marketing.
E)mass marketing.

Accepted Answer

Tara's decision to open a specialty cake shop focusing on her strength in hand-decorated cakes, rather than offering a wide variety of baked goods, is an example of market segmentation. She is targeting a specific segment of the market that appreciates and seeks out specialty cakes.

Question 13

Firms can choose to promote one or multiple competitive advantages, as long as they can clearly articulate those advantages to their target market.

Accepted Answer

Firms often differentiate themselves by promoting various competitive advantages such as quality, price, or innovation. The key is effectively communicating these advantages to the target market to influence consumer perception and choice.

Question 14

Market segmentation produces relatively homogenous groups of consumers called
A)consumer targets.
B)consumer segments.
C)market sectors.
D)market segments.
E)consumer clusters.

Accepted Answer

The answer of Market segmentation produces relatively homogenous groups of...

Question 15

Which market segment criteria refers to the fact that segments must be large enough for the firm to make a profit by serving them?
A)accessible
B)substantial
C)measurable
D)differentiable
E)actionable

Accepted Answer

The answer of Which market segment criteria refers to the...

Question 16

What does the criteria accessible mean regarding market segments?
A)Markets should be clearly identified with appropriate strategies developed for each.
B)Segments must be large enough for the firm to make a profit by serving them.
C)The size and purchasing power of the segment should be clearly identified.
D)Marketers must be able to reach and serve the segment.
E)Marketers should develop strategies that can attract a market to its products.

Accepted Answer

The answer of What does the criteria accessible mean regarding...

Question 17

Urban Fashions found that customers who live and work in big urban cities are more likely to buy its portfolio style backpack than consumers who live and work in the suburbs. Based on this information, the company spends more of its marketing budget advertising on city buses and in urban-related magazines since these outlets will be seen by customers living and working in the city. This exemplifies how market segmentation
A)helps firms decide how to allocate their marketing resources in a way that maximizes profit.
B)results in the creation of a single market that can be reached with a single marketing strategy.
C)results in identifying the relatively heterogenous groups of consumers to which a firm can market its products.
D)helps firms define the needs and wants of the customers who are most interested in buying the firm's products.
E)results in a one-size-fits-all marketing strategy.

Accepted Answer

The answer of Urban Fashions found that customers who live...

Question 18

Market segmentation refers to
A)having regional sales forces that can market a product according to geographic area.
B)redesigning or repositioning a product so it meets the needs of a target market.
C)taking an overall marketing plan and dividing it into smaller campaigns based on each product.
D)marketing a product so that each and every consumer can get value from it.
E)dividing a larger market into smaller groups based on meaningfully shared characteristics.

Accepted Answer

The answer of Market segmentation refers to
A)having regional sales forces...

Question 19

Market segments are
A)relatively heterogeneous groups of consumers that result from the segmentation process.
B)the different geographical areas in which a product must be marketed differently.
C)the various types of advertising and promotional campaigns used to sway consumer interest in a product.
D)the two buying groups: those that have never purchased a firm's product, and those that are potential repeat customers.
E)relatively homogenous groups of consumers that result from the segmentation process.

Accepted Answer

Market segments are relatively heterogeneous groups of consumers that result from the segmentation process.

Question 20

A perceptual map is a competitive analysis tool that creates a visual picture of where products are located in consumer's minds.

Accepted Answer

A perceptual map is indeed a visual representation used in marketing to show how consumers perceive different products or brands in relation to each other, often based on important attributes or dimensions.

Quiz 7: Segmentation, Targeting, and Positioning

What are the two most commonly used demographic variables used by marketers?

Demographic segmentation divides markets by

Which of the following is not one of the broad segmentation bases outlined in your text that can be used to segment a market?

To be effective, market segmentation should create market segments that rate favorably on various criteria. Specifically, market segmentation should create market segments that are measurable, differentiable, accessible, actionable, and

Repositioning refers to resegmenting a target market that failed to produce enough buyers for a product.

A successful positioning statement should include the competitive advantages of the product.

When a firm is reasonably certain that its marketing mix can inform consumers about the product, how it adds value to the consumer, and ultimately how to purchase it, then the firm rates favorably on which market segment criteria?

A defined in your text, market segmentation involves dividing a larger market into smaller market segments based on

A firm that uses a price-quality relationship to highlight its competitive advantage will negotiate discounts from wholesalers and keep distribution costs low so it can pass the savings on to its customers.

When it comes to criteria for segmenting markets, it is important that the size and purchasing power of a market segment should be clearly identified. In other words, it should be

Firms can choose to promote one or multiple competitive advantages, as long as they can clearly articulate those advantages to their target market.

Market segmentation produces relatively homogenous groups of consumers called

Which market segment criteria refers to the fact that segments must be large enough for the firm to make a profit by serving them?

What does the criteria accessible mean regarding market segments?

Market segmentation refers to

Market segments are

A perceptual map is a competitive analysis tool that creates a visual picture of where products are located in consumer's minds.