Question 1

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 give marketers information on age, location, and income, it may not necessarily reveal what specific needs their customers have. It requires further research and analysis to understand the buying behavior and preferences of the customers.

Question 2

When Ron complained to his bank about the unprofessional behavior of one teller, the branch manager added a code into his accounts alerting all tellers that Ron was a valued customer and to provide whatever service he requests. The branch management included Ron in its __________ segmentation.
A) benefit
B) geodemographic
C) psychographic
D) loyalty
E) geographic

Accepted Answer

The inclusion of Ron in the bank's loyalty segmentation is the most appropriate choice. The bank wants to ensure that Ron continues to be a satisfied customer and therefore has added a code in his accounts to provide him with special treatment. This is a clear indication that the bank is focusing on retaining loyal customers.

Question 3

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

Kim initially used geodemographic segmentation by targeting the retirement community nearby which is a specific geographic location with a specific demographic profile. Then, she used lifestyle segmentation by tailoring her service and marketing message to the interests and schedules of the active retirees.

Question 4

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

Since American soldiers in Afghanistan are in a war zone, it may be difficult for Ryan to reach them and communicate with them, making them hard to reach.

Question 5

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 that the customers in the segment react positively and similarly to the marketing mix offered by the firm. Thus, the segment must be responsive to the marketing mix. While the other factors (substantial, identifiable, reachable, and perceptive) are also important, they do not directly relate to the customers' reaction to the marketing mix.

Question 6

Retail store chains often use __________ data to identify other locations with similar characteristics and purchasing behavior where it might make sense to open additional stores.
A) geodemographic
B) benefit
C) psychographic
D) loyalty
E) geographic

Accepted Answer

Geodemographic data combines geographical and demographic information to identify neighborhoods and areas that share similar characteristics and behaviors, including purchasing behavior. This makes it a useful tool for retail store chains to identify potential locations for new stores. Benefit, psychographic, and loyalty data are not specifically focused on geographic location and may not provide the same level of insight. Geographic data alone does not take into account demographic information or consumer behavior.

Question 7

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) geodemographic segmentation; lifestyle or benefit segmentation
E) lifestyle segmentation; geographic segmentation

Accepted Answer

Geodemographic segmentation divides consumers based on both geographic location and demographic characteristics. This method allows marketers to identify the features and preferences of consumers living in a particular geographic area, and design products and messages to appeal to them. Lifestyle or benefit segmentation divides consumers based on their attitudes, values, interests, and benefits sought. This method enables marketers to identify the groups of consumers with similar lifestyles or benefit needs and develop targeted messages and products to meet their needs. Therefore, the combination of geodemographic segmentation and lifestyle or benefit segmentation is the best choice for marketers to identify and target their customers and design products and messages to appeal to them.

Question 8

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 consist of customers who have already demonstrated a preference for the company and its products or services. Therefore, they are more likely to generate profits through repeat purchases and positive word-of-mouth recommendations. As a result, marketers often create a special marketing mix for these segments to ensure they continue to feel valued and engaged, leading to further loyalty and profitability.

Question 9

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) PRIZM segment.

Accepted Answer

The answer of When Talbots, an upscale women's clothing store,...

Question 10

College students can be a less __________ market segment because students' media habits are quite diverse.
A) substantial
B) perceptive
C) identifiable
D) reachable
E) quantifiable

Accepted Answer

The answer of College students can be a less __________...

Question 11

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 is useful for retailers because it helps them understand the characteristics and behaviors of people living in specific geographic areas. Retail stores typically rely on local customers, so understanding the demographics of the surrounding neighborhoods can provide valuable insights for targeting and marketing efforts.

Question 12

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 allows marketers to identify and target their most loyal customers, who are more likely to make repeat purchases and generate long-term revenue for the company, thus reducing the need and cost of acquiring new customers.

Question 13

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

After identifying potential market segments, the next logical step would be to evaluate the attractiveness of each segment in terms of size, growth potential, profitability, competition, and compatibility with the organization's capabilities and resources. This will help Karen to prioritize her efforts and allocate resources effectively. Categorizing each market segment by consumer demographics, establishing overall objectives, deciding on targeting and positioning strategies are important steps, but evaluating segment attractiveness should come first.

Question 14

Carlos has identified four potential market segments for his Rent-A-Nurse service. He will now compare the segments to see whether they are distinct from each other. Carlos is evaluating whether each segment is
A) identifiable.
B) responsive.
C) profitable.
D) reachable.
E) substantial.

Accepted Answer

Carlos is evaluating whether each potential market segment is distinct and identifiable from the other segments. This is important in order to effectively target and market to each specific segment. While responsiveness, profitability, reachability, and substance are also important factors to consider, the question specifically asks about evaluating for distinctness.

Question 15

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate whether each segment is attractive relative to all of the following EXCEPT
A) substantial.
B) responsive.
C) profitable.
D) reachable.
E) realistic.

Accepted Answer

The answer of Karen has identified four potential market segments...

Question 16

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 17

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

Talbots is segmenting based on demographic factors such as age, education level, and household income.

Question 18

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 access to the internet, potential market segments that were previously difficult to reach are now within reach.

Question 19

When Starbucks first opened, many critics suggested, "No one will pay $4.00 for a cup of coffee." Starbucks' critics suggested consumers would not be __________ to the company's offerings.
A) responsive
B) perceptive
C) identifiable
D) reachable
E) quantifiable

Accepted Answer

The word "responsive" fits best in this context as it means that people would not be willing to react or respond positively towards Starbucks' offerings, which aligns with the critics' suggestion that consumers would not want to pay $4.00 for a cup of coffee.

Question 20

Airlines were among the first retailers to embrace loyalty segmentation when they created
A) business-class seating.
B) 30-day advance pricing.
C) fuel surcharges.
D) in-flight movies.
E) frequent flyer programs.

Accepted Answer

Airlines created frequent flyer programs as a way to reward and retain their most valuable customers through loyalty segmentation.

Quiz 9: Segmentation, Targeting, and Positioning

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

When Ron complained to his bank about the unprofessional behavior of one teller, the branch manager added a code into his accounts alerting all tellers that Ron was a valued customer and to provide whatever service he requests. The branch management included Ron in its __________ segmentation.

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.

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

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

Retail store chains often use __________ data to identify other locations with similar characteristics and purchasing behavior where it might make sense to open additional stores.

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.

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

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

College students can be a less __________ market segment because students' media habits are quite diverse.

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

One of the reasons marketers use loyalty segmentation is

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

Carlos has identified four potential market segments for his Rent-A-Nurse service. He will now compare the segments to see whether they are distinct from each other. Carlos is evaluating whether each segment is

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate whether each segment is attractive relative to all of the following EXCEPT

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

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.

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

When Starbucks first opened, many critics suggested, "No one will pay $4.00 for a cup of coffee." Starbucks' critics suggested consumers would not be __________ to the company's offerings.

Airlines were among the first retailers to embrace loyalty segmentation when they created