Question 1

Online commerce has led to a shift in consumer buying patterns. Two aspects of internet shopping have led to this shift. First, greater choice is permitted by increased inventory and variety, and second,
A) the mass market focuses on generating "hit" products.
B) the search costs of finding relevant new products are lowered.
C) consumers prefer catalogue channels to online retailers.
D) the distribution of product sales conforms to a curve.
E) demand has shifted from niche products to hits.

Accepted Answer

The search costs of finding relevant new products are lowered due to the ability to search and filter products online, saving time and effort compared to physically browsing through stores.

Question 2

PRIZM (Potential Rating Index by Zip Markets) identifies clusters of consumers based on a variety of characteristics such as education and affluence. Which of the following clusters would match to a consumer group that is characterized as being couples or single-headed households, most of them with kids, who have decided to stay in urban centres rather than flee to the suburbs?
A) the cosmopolitans
B) young digerati
C) blue bloods
D) winner's circle
E) beltway boomers

Accepted Answer

The answer of PRIZM (Potential Rating Index by Zip Markets)...

Question 3

________ is the science of using psychology and demographics to better understand consumers.
A) Social psychology
B) Segmentation
C) Demographics
D) Clustering
E) Psychographics

Accepted Answer

The science of using psychology and demographics to better understand consumers is known as psychographics. This involves studying personality traits, values, interests, and lifestyles to create a more detailed profile of potential consumers. Segmentation, demographics, and clustering are all related concepts but do not specifically involve the use of psychology to understand consumers. Social psychology is a broader field focused on understanding how people interact with each other and their environment.

Question 4

Generation Y is marked by racial diversity, and they are ________.
A) highly socially conscious
B) single-focused
C) stress-free
D) anti-community
E) pessimistic

Accepted Answer

Generation Y, also known as Millennials, grew up in a time of increasing racial and ethnic diversity, which has contributed to their high levels of social consciousness and awareness of social justice issues. Therefore, option A "highly socially conscious" is the best choice.

Question 5

A marketing manager is considering several options to market to market segments identified as being either culture-oriented, sports-oriented, or outdoor-oriented. This manager has selected the ________ format for segmenting markets.
A) personality
B) psychographic lifestyle
C) user status
D) behavioural occasions
E) readiness stage

Accepted Answer

The segmentation of markets based on culture-oriented, sports-oriented, or outdoor-oriented is an example of psychographic lifestyle segmentation. This segmentation is based on the attitudes, values, beliefs, and interests of consumers, which are key components of psychographic segmentation.

Question 6

With respect to user status (a segmentation possibility), ________ tend to focus on attracting potential users because they have the most to gain.
A) niche firms
B) smaller firms
C) aggressive specialists
D) market-share leaders
E) followers

Accepted Answer

Market-share leaders tend to have established user bases and are therefore more focused on retaining current users rather than attracting new ones. Niche firms, smaller firms, aggressive specialists, and followers may all have limited resources and may prioritize gaining new users over retaining current ones, but market-share leaders are in a stronger position to focus on retention. Therefore, the answer is not A, B, C, or E.

Question 7

If a marketer decides to segment a market based on neighbourhoods, the marketer will have chosen the ________ method of segmentation.
A) cultural
B) demographic
C) social class
D) geographic
E) psychographic

Accepted Answer

Geographic segmentation divides the market based on geographic boundaries such as neighbourhoods, towns, or regions. This helps marketers to understand the cultural, social, demographic, and psychographic differences that are associated with a particular location. Thus, the marketer who decides to segment a market based on neighbourhoods has chosen the geographic method of segmentation.

Question 8

Men and women tend to have different attitudinal and behavioural orientations, based partly on genetic makeup and partly on
A) occupation.
B) globalization.
C) heredity.
D) income.
E) socialization.

Accepted Answer

Socialization refers to the process by which individuals learn and adopt the norms, values, and behaviors appropriate to their society, which can influence attitudinal and behavioral differences between men and women.

Question 9

According to the VALS 8-part typology segmentation system, ________ are successful, sophisticated, active, "take-charge" people with high self-esteem. Their purchases often reflect cultivated tastes for relatively upscale, niche-oriented products and services.
A) thinkers
B) achievers
C) innovators
D) believers
E) experiencers

Accepted Answer

Innovators are described in the VALS framework as successful, sophisticated, and active individuals with high self-esteem, who make purchases that reflect their cultivated tastes for upscale and niche products and services.

Question 10

The ________ refers to parents being influenced by their Generation Y children still living at home.
A) youth-obsessed effect
B) sandwich effect
C) silent generation effect
D) boom-boom effect
E) cohort effect

Accepted Answer

The answer of The ________ refers to parents being influenced...

Question 11

________ combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product service offering of their choice.
A) Viral marketing
B) Regionalization
C) Consumptionization
D) Customerization
E) Virtual marketing

Accepted Answer

The term "customerization" refers to the process of combining mass customization with customized marketing. This approach allows customers to design and personalize the product or service offering that best meets their needs and preferences. It empowers consumers to create a unique experience that is tailored to their specific requirements. This approach can drive customer loyalty, satisfaction, and engagement, as customers feel more invested in the product or service that they have helped to create.

Question 12

According to the major segmentation variables for consumer markets, which of the following would be the appropriate segment category to target young, marrieds?
A) lifestyle
B) generation
C) family life cycle
D) family size
E) age

Accepted Answer

Family life cycle is the appropriate segmentation category for targeting young, marrieds as it focuses on the distinct stages that families go through as they grow and evolve. Young, marrieds would fall under the "newlyweds" or "young couples" stage of the family life cycle.

Question 13

Robert is the owner of an automobile manufacturing company. He calls for a board meeting and tells his directors that he wants to build a car that lets the users experience power and exhilaration. He tells them that the car must allow his users to soar from 0-60 mph in about 4 seconds. He also adds in that the price of the car must be affordable enough for anybody making a good salary. In accordance with the given scenario, Robert is trying to segment the market on the basis of ________.
A) social class
B) life style
C) income
D) benefits
E) user rate

Accepted Answer

Robert is focusing on the benefits that the car provides, such as power and exhilaration, which are specific advantages that appeal to certain customers.

Question 14

A marketer of wines identified six different benefit segments in the premium wine market. ________ (14 percent of the market) tend to buy the same brands since they don't know much about wine.
A) Savvy Shoppers
B) Satisfied Sippers
C) Image Seekers
D) Enthusiasts
E) Overwhelmed

Accepted Answer

The answer of A marketer of wines identified six different...

Question 15

Two broad groups of variables are used to segment consumer markets. One method uses descriptive characteristics such as geography. The other method is to form segments by looking at ________ considerations.
A) income
B) cultural
C) behavioural
D) gender
E) interest

Accepted Answer

The correct answer is behavioural considerations, as these factors include consumer patterns and behaviours such as usage rate, brand preference, and loyalty. These factors provide more in-depth insights into the consumer's decision-making process and are often used in market research to create more effective marketing strategies. The other options such as income, culture, gender, and interest are all descriptive characteristics that are commonly used in segmentation but do not focus on individual behavioural differences.

Question 16

A housewife requests a new treadmill for her birthday. With respect to consumer decision roles, which role is the housewife currently playing?
A) gatekeeper
B) initiator
C) decider
D) influencer
E) buyer

Accepted Answer

The housewife is playing the initiator role by expressing her interest and desire for a new treadmill. The gatekeeper role would be someone who controls the flow of information and may restrict access to the decision-making process. The decider role would be the person who ultimately makes the final decision. The influencer role would be someone who has an impact on the decision-making process but may not be the primary decision-maker. The buyer role would be the person who actually purchases the product.

Question 17

If a marketing researcher uses such names (categories) as Young Degerati, Mini Van &Vin Rouge, Lunch at Tim's, and Park Bench Seniors, when doing segmentation research, the marketing researcher is using ________ clusters.
A) psychographic
B) behavioral
C) PRIZM
D) demographic
E) VALS

Accepted Answer

The categories mentioned correspond to PRIZM clusters, which are a commonly used segmentation tool in marketing research. These clusters are based on demographic, behavioral, and psychographic factors and are used to identify groups of consumers with similar characteristics and preferences.

Question 18

Jose and Erika have just divorced. This will obviously not only have an impact on their personal lives but their consumptive lives as well. Which of the following demographic segmentation subsegment formats might be used by marketers to reach Jose or Erika?
A) life stage
B) user segment
C) benefits
D) age segment
E) occasion segment

Accepted Answer

The life stage subsegment format focuses on significant life events, such as divorce, that impact a person's purchasing behavior. Marketers can tailor their marketing strategies to reach individuals going through a divorce, such as advertising products or services that help with the transition to single life.

Question 19

Income does not always predict the best customers. For instance, ________ were among the first purchasers of colour television sets.
A) the social elite
B) blue-collar workers
C) the homeless
D) white collar executives
E) upper middle class professionals

Accepted Answer

Blue-collar workers were among the first purchasers of colour television sets, despite not having the highest incomes. This highlights the fact that income is not always the best predictor of consumer behavior.

Question 20

According to the VALS 8-part typology segmentation system, ________ are considered to be elderly, passive people who are concerned about change. They are loyal to their favourite brands.
A) makers
B) experiencers
C) strivers
D) survivors
E) believers

Accepted Answer

According to the VALS segmentation system, survivors are defined as elderly, passive individuals who resist change and are loyal to their preferred brands. The other options - makers, experiencers, strivers, and believers - do not fit this description.

Quiz 8: Identifying Market Segments and Targets

Online commerce has led to a shift in consumer buying patterns. Two aspects of internet shopping have led to this shift. First, greater choice is permitted by increased inventory and variety, and second,

________ is the science of using psychology and demographics to better understand consumers.

Generation Y is marked by racial diversity, and they are ________.

A marketing manager is considering several options to market to market segments identified as being either culture-oriented, sports-oriented, or outdoor-oriented. This manager has selected the ________ format for segmenting markets.

With respect to user status (a segmentation possibility) , ________ tend to focus on attracting potential users because they have the most to gain.

If a marketer decides to segment a market based on neighbourhoods, the marketer will have chosen the ________ method of segmentation.

Men and women tend to have different attitudinal and behavioural orientations, based partly on genetic makeup and partly on

According to the VALS 8-part typology segmentation system, ________ are successful, sophisticated, active, "take-charge" people with high self-esteem. Their purchases often reflect cultivated tastes for relatively upscale, niche-oriented products and services.

The ________ refers to parents being influenced by their Generation Y children still living at home.

________ combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product service offering of their choice.

According to the major segmentation variables for consumer markets, which of the following would be the appropriate segment category to target young, marrieds?

A marketer of wines identified six different benefit segments in the premium wine market. ________ (14 percent of the market) tend to buy the same brands since they don't know much about wine.

Two broad groups of variables are used to segment consumer markets. One method uses descriptive characteristics such as geography. The other method is to form segments by looking at ________ considerations.

A housewife requests a new treadmill for her birthday. With respect to consumer decision roles, which role is the housewife currently playing?

If a marketing researcher uses such names (categories) as Young Degerati, Mini Van &Vin Rouge, Lunch at Tim's, and Park Bench Seniors, when doing segmentation research, the marketing researcher is using ________ clusters.

Jose and Erika have just divorced. This will obviously not only have an impact on their personal lives but their consumptive lives as well. Which of the following demographic segmentation subsegment formats might be used by marketers to reach Jose or Erika?

Income does not always predict the best customers. For instance, ________ were among the first purchasers of colour television sets.

According to the VALS 8-part typology segmentation system, ________ are considered to be elderly, passive people who are concerned about change. They are loyal to their favourite brands.