Question 1

The identification of subgroups of consumers with similar wants and buying requirements is called
A) positioning.
B) segmentation.
C) focus strategy.
D) market development.

Accepted Answer

The identification of subgroups of consumers with similar wants and buying requirements is known as segmentation. It is a process which can help the firm to understand their customers and create specialized marketing campaigns for each group. Positioning refers to the process by which a company creates a unique image and sets apart its product or service from competitors. Focus strategy aims to serve a particular market segment exclusively. Market development is a strategy where a company attempts to expand into new markets or market segments. The identification of subgroups of consumers with similar wants and buying requirements is called segmentation.

Question 2

Which segmentation technique focuses on the where issue?
A) Geographic
B) Demographic
C) Psychographic
D) Behaviour

Accepted Answer

Geographic segmentation involves dividing a market based on geographical boundaries such as regions, countries, states, cities, or neighborhoods. This segmentation technique focuses on the "where" issue, making it the best choice for this question. Demographic segmentation focuses on demographics such as age, gender, income, etc. Psychographic segmentation focuses on personality traits, lifestyles, and values. Behavioral segmentation focuses on consumer behavior and buying patterns. Geography focuses on the 'where' issues. It ranges from local to global, and it could encompass any variation within the two extremes.

Question 3

In ________ segmentation the company sees the entire world as its appropriate playing field.
A) local
B) global
C) regional
D) micro

Accepted Answer

In global segmentation, the company is not limited by geographical boundaries and sees the entire world as a potential market. This usually involves developing marketing strategies that can be applied across multiple countries or regions. Local segmentation is the opposite, where the company focuses on specific areas or regions, while regional segmentation focuses on a specific geographic region. Micro segmentation, on the other hand, targets specific groups of individuals based on their needs or behavior.

Question 4

Segmentation based on life conditions that have a potential impact of product/service purchase decisions is called ________
A) cohorts of society.
B) family.
C) income.
D) family life cycle stage.

Accepted Answer

Segmentation based on the family life cycle stage considers key life events that can impact a consumer's product/service purchase decisions, such as marriage, having children, and becoming empty nesters. Cohorts of society and income are other forms of segmentation, but they may not necessarily consider life events as a factor. Family can also be a basis for segmentation, but family life cycle stage provides more specific and relevant information.

Question 5

Which of the following is not one of the main generational cohorts in the US market as per Pew Research Centre?
A) Generation Z
B) Silent generation
C) Baby boomers
D) Young parents

Accepted Answer

While "Young parents" is a demographic group, it is not considered one of the main generational cohorts in the US market. The main generational cohorts are typically acknowledged to be: Silent generation, Baby boomers, Generation X, Millennials, and Generation Z. According to the Pew Research Centre, there are five main generational cohorts: Silent generation, baby boomers, generation x, millennials, generation x.

Question 6

What does ethnicity equate to?
A) Age
B) Religion
C) Race
D) National country/culture of origin

Accepted Answer

Ethnicity equates to national country/culture of origin.

Question 7

Which of the following is not one of the accepted grade definitions used in the UK to reflect social class?
A) Upper middle
B) Middle Middle
C) Lower middle
D) Working class

Accepted Answer

In the UK, the accepted grade definitions used to reflect social class are Upper class, Upper middle class, Middle class, Intermediate class, Skilled working class, Working class, and Lower class. "Middle Middle" is not one of the accepted terms. In Great Britain, there are six accepted grade definitions used reflecting social class (Pamco 2019) and "Middle Middle" is not one of them.

Question 8

Psychographic bases of segmentation centre on __________
A) perceptual issues.
B) mental issues.
C) imaginary issues.
D) prior experience.

Accepted Answer

Psychographic segmentation focuses on perceptual issues, which include consumers' lifestyles, values, attitudes, and interests.

Question 9

Kotler (2003) lists four main variations of personality; they are
A) compulsive, gregarious, futuristic, and ambitious.
B) comprehensive, gregarious, authoritarian, and ambitious.
C) compulsive, gregarious, authoritarian, and ambitious.
D) compulsive, gratuitous, authoritarian, and ambitious.

Accepted Answer

Kotler (2003) lists the four main variations of personality as compulsive, gregarious, authoritarian, and ambitious. Option (A) is incorrect because "futuristic" is not one of the variations listed by Kotler, and "comprehensive" is not a recognized variation. Option (B) is incorrect because "authoritarian" is listed twice, and "comprehensive" is not a recognized variation. Option (D) is incorrect because "gratuitous" is not a recognized variation. The four main variations of personality are: compulsive, gregarious, authoritarian, and ambitious (Kotler, 2003).

Question 10

Shalom Schwartz (1994) focuses on the identification of basic cultural core values. The seven cultural values they identified do NOT include
A) conservatism.
B) mastery.
C) affective autonomy.
D) effective autonomy.

Accepted Answer

The work of Shalom Schwartz (1994) focuses on the identification of basic cultural core values. Schwartz identified seven cultural value types: conservatism, intellectual autonomy, affective autonomy, hierarchy, mastery, egalitarian commitment, and harmony.

Question 11

The VALS typology combines _______ and ________ approach to segmentation.
A) psychological, income
B) psychological, demographics
C) geographical, demographics
D) emotional, demographics

Accepted Answer

The VALS typology combines psychological and demographic approaches to segmentation. VALS considers both psychological motivations (such as values, beliefs, and attitudes) and demographic characteristics (such as age, income, and education) to create distinct consumer segments.

Question 12

For the US market SRI identified eight separate groups for segmentation purposes. Which of the following is not one of them?
A) Actualizers
B) Experiencers
C) Believers
D) Bohemians

Accepted Answer

The eight segments identified by SRI for the US market are Innovators, Thinkers, Achievers, Experiencers, Believers, Strivers, Makers, and Survivors. "Bohemians" is not one of the segments. Bohemians is not a group identified for segmentation by SRI.

Question 13

Grouping consumers having similar uses for, and responses to particular products or services is called _______ segmentation.
A) intuitive
B) consumer centric
C) behavioural
D) psychographic

Accepted Answer

Behavioural segmentation involves grouping consumers based on their behaviors and usage patterns related to a product or service. This can include factors like loyalty, buying frequency, usage occasion, and benefits sought. Intuitive segmentation and consumer-centric segmentation are not widely recognized methods of segmentation, and psychographic segmentation is based on personality traits and values rather than behaviors.

Question 14

Which are the five levels of loyalty?
A) Brand desire, brand loyalty, split loyalty, shifting loyalty, no loyalty
B) Brand insistence, brand loyalty, split loyalty, shifting loyalty, no loyalty
C) Brand insistence, brand loyalty, stuck loyalty, shifting loyalty, no loyalty
D) Brand insistence, brand loyalty, split loyalty, shifting loyalty, complete loyalty

Accepted Answer

The five levels of loyalty are brand insistence (loyalty to one brand only), brand loyalty (preference for one brand, but may consider others), split loyalty (equal preference for multiple brands), shifting loyalty (frequent switching of brands) and no loyalty (no preference for any brand). Option B accurately lists all five levels. Brand insistence, brand loyalty, split loyalty, shifting loyalty, no loyalty are five stages of loyalty.

Question 15

Segmenting consumers on the bases of key benefits that consumers seek from the use of some product/service is called_______
A) benefits segmentation.
B) needs segmentation.
C) desire segmentation.
D) active segmentation.

Accepted Answer

Benefits segmentation involves grouping consumers based on the specific benefits or solutions they seek from a product or service. This helps companies design and market their products to specific consumer segments based on their unique needs and preferences. Needs segmentation and desire segmentation can be considered subsets of benefits segmentation, as they both focus on understanding consumers' specific needs and desires when purchasing a product or service. Active segmentation is not a commonly used term in marketing segmentation.

Question 16

Cluster analysis, conjoint analysis, discriminant analysis, and perceptual mapping are tools used for _____
A) targeting.
B) positioning.
C) segmentation.
D) strategizing.

Accepted Answer

Cluster analysis, conjoint analysis, discriminant analysis, and perceptual mapping are all tools used in market segmentation. They help companies understand their customers better by identifying similarities and differences among them, which can be used to develop targeted marketing strategies.

Question 17

Within-group differences are minimized and the between-group differences are maximized in which segmentation tool?
A) Cluster analysis
B) Conjoint analysis
C) Discriminant analysis
D) Multidimensional scaling

Accepted Answer

Within-group differences are minimized and the between-group differences are maximized in cluster analysis.

Question 18

Which segmentation tool visually demonstrates how particular consumers view the various offerings?
A) Cluster analysis
B) Conjoint analysis
C) Discriminant analysis
D) Multidimensional scaling

Accepted Answer

Multidimensional scaling (MDS) visually demonstrates how consumers view different offerings. MDS creates a map of respondents' perceptions and preferences, showing how they position different products or brands relative to one another. Multidimensional scaling is a tool used for visually demonstrating how particular consumers view the various offerings.

Question 19

Which segmentation tool uses a series of possible product/service attribute combinations?
A) Cluster analysis
B) Conjoint analysis
C) Discriminant analysis
D) Multidimensional scaling

Accepted Answer

Conjoint analysis is a segmentation tool that uses a series of possible product/service attribute combinations to determine customers' preferences and identify the most important attributes that drive their purchase decisions. It helps in target marketing by dividing customers into distinct segments based on their preferences and willingness to pay for specific attributes. Conjoint analysis uses a series of possible product/service attribute combinations.

Question 20

Palmer & Miller's (2004) framework used for segmentation can be done based on either____________ or ____________
A) who the buyer is; where the buyer shops.
B) where the buyer shops; what is being bought.
C) where the buyer lives; what is being bought.
D) who the buyer is; what is being bought.

Accepted Answer

Palmer & Miller's (2004) framework uses either who the buyer is or what is being bought as a basis for segmentation. Therefore, the best answer would be D, as it includes both factors. The other options only include one factor as a basis for segmentation.

Quiz 4: Segmentation, Targeting, and Positioning Strategies

The identification of subgroups of consumers with similar wants and buying requirements is called

Which segmentation technique focuses on the where issue?

In ________ segmentation the company sees the entire world as its appropriate playing field.

Segmentation based on life conditions that have a potential impact of product/service purchase decisions is called ________

Which of the following is not one of the main generational cohorts in the US market as per Pew Research Centre?

What does ethnicity equate to?

Which of the following is not one of the accepted grade definitions used in the UK to reflect social class?

Psychographic bases of segmentation centre on __________

Kotler (2003) lists four main variations of personality; they are

Shalom Schwartz (1994) focuses on the identification of basic cultural core values. The seven cultural values they identified do NOT include

The VALS typology combines _ and __ approach to segmentation.

For the US market SRI identified eight separate groups for segmentation purposes. Which of the following is not one of them?

Grouping consumers having similar uses for, and responses to particular products or services is called _______ segmentation.

Which are the five levels of loyalty?

Segmenting consumers on the bases of key benefits that consumers seek from the use of some product/service is called_______

Cluster analysis, conjoint analysis, discriminant analysis, and perceptual mapping are tools used for _____

Within-group differences are minimized and the between-group differences are maximized in which segmentation tool?

Which segmentation tool visually demonstrates how particular consumers view the various offerings?

Which segmentation tool uses a series of possible product/service attribute combinations?

Palmer & Miller's (2004) framework used for segmentation can be done based on either or