Question 1

Segmentation by customer type occurs when business marketers segment their markets by income,occupation,and educational variables.

Accepted Answer

Segmentation by customer type allows business marketers to tailor their marketing mixes to the unique needs of particular types of organizations or industries.

Question 2

Once a marketer is aware of all possible segmentation variables,choosing which variables to use is a simple,scientific process.

Accepted Answer

Selecting segmentation variables is never simple or scientific;it is a creative process,limited primarily by the marketer's imagination.

Question 3

A market segmentation study done classified recreational skiers in terms of their gender,age,and educational levels.The study used demographic segmentation variables.

Accepted Answer

The study used demographic segmentation variables, which include characteristics such as gender, age, and educational level. Therefore, the statement is true.

Question 4

Sav-On Stores,which operates a number of grocery stores,learned that 25 percent of its shopping base is responsible for a substantial majority of its revenue.This is the general idea posited by the 80/20 principle.

Accepted Answer

The statement accurately reflects the concept of the 80/20 principle, which states that 20% of the inputs or efforts often account for 80% of the results or outcomes. In this case, 25% of the shopping base (input) is generating a substantial majority of the revenue (outcome).

Question 5

The slogan used by GlaxoSmithKline,"Disease has no greater enemy," indicates that the pharmaceutical company relies heavily on benefit segmentation variables.

Accepted Answer

Benefit segmentation involves dividing customers based on the benefits they seek from a product or service. The slogan used by GlaxoSmithKline suggests that they are positioning themselves as an ally in the fight against disease, which is a benefit sought by many people. Therefore, it can be inferred that GlaxoSmithKline relies heavily on benefit segmentation variables.

Question 6

Reality-based television shows are targeted to people who like to believe they could become a part of such a show and find their way to fame and fortune.This is an example of psychographic segmentation.

Accepted Answer

Psychographic segmentation is the process of dividing a market based on personality traits, values, attitudes, interests, and lifestyle. The statement aligns with this concept as it suggests that the reality-based television shows are specifically designed to appeal to individuals who aspire to become famous and successful through them.

Question 7

One of the trends that will lead to the continued growth of one-to-one marketing is the perception by consumers that they have more things to do and less time in which to do them.

Accepted Answer

The perception of having more things to do and less time in which to do them creates a demand for personalized, efficient experiences, which one-to-one marketing can provide. This trend is expected to lead to the continued growth of one-to-one marketing.

Question 8

Pitkin Enterprises produces animal figurines for children and young adults.For children,it makes hard-to-break figurines that are promoted and distributed in the same manner as the delicate,porcelain ones made for young adults.Pitkin engages in multisegment targeting.

Accepted Answer

Pitkin Enterprises engages in multisegment targeting by producing figurines for both children and young adults and promoting them in different ways.

Question 9

One reason marketers use market segmentation as a tool is that,once completed,the process need not be repeated.

Accepted Answer

Market segmentation is an ongoing process.Because external forces may change something in the marketer's environment,marketers must be able to react to those changes as they occur.

Question 10

Festive Holiday Truffles is a small confectionary company.Its owner has been heard to say she engages in mass marketing.Marketers would call her strategy an undifferentiated targeting strategy.

Accepted Answer

An undifferentiated targeting strategy involves targeting the entire market with a single marketing mix, which would be consistent with Festive Holiday Truffles engaging in mass marketing.

Question 11

The business market consists of four broad segments.They are producers,resellers,governments,and regions.

Accepted Answer

The four segments are producers,resellers,institutions,and governments.

Question 12

The Korean Canadian market can always be treated as a single segment.

Accepted Answer

In many instances,an ethnic market is not one segment but several.

Question 13

Clearing Skies Press published a book by Robert Ruark entitled Keeping the Baby Alive Till Your Wife Gets Home.It is an advice book for new fathers.The market for this book is based on demographics.

Accepted Answer

The fact that the book is targeted towards new fathers indicates that the market is based on demographics, specifically the demographic of new fathers.

Question 14

HK Magazine is a free,Hong Kong-based English-language weekly magazine published by Asia City Publishing Limited.It targets young metropolitans with a focus on how to live well in the city.Its publisher most likely used geodemographic variables to segment its market.

Accepted Answer

Geodemographics combines geographic,demographic,and lifestyle segmentation.

Question 15

Clorox targets individuals who buy lots of cleaning products (heavy users).Some of these users are mainly interested in cleaning bathrooms,while others are more concerned with kitchen cleanliness.Clorox doesn't approach these two groups differently but addresses both types of people as heavy users.This is an example of how companies use benefit segmentation.

Accepted Answer

Because Clorox does not segment based on benefits sought but only on usage,this is an example of usage rate segmentation.

Question 16

The difference between one-to-one marketing and the traditional mass-marketing approach is difficult to articulate.

Accepted Answer

Your text compares the difference between one-to-one marketing and the traditional mass-marketing approach as shooting a rifle versus a shotgun.

Question 17

When Holiday Inn used the slogan,"Pleasing people the world over," it was relying on demographic segmentation.

Accepted Answer

This is more reflective of benefit segmentation.There is no suggestion of use of any of the segmentation variables associated with demographic segmentation in the slogan.

Question 18

Five statistically distinct health segments in the general population have been identified.One of these segments is referred to as "Avid Partners." Avid Partners are information driven.They are characterized by their high interest in acquiring health care knowledge,their perception of themselves as "partners" in decisions that are made about their medical care,their lack of loyalty to specific physicians,and their resulting willingness to change physicians.The primary segmentation variables used to identify these health segments was psychographic.

Accepted Answer

The statement describes the characteristics of the "Avid Partners" health segment and states that the primary segmentation variables used were psychographic, indicating that the statement is true.

Question 19

Clearing Skies Press published a book by Robert Ruark entitled Keeping the Baby Alive Till Your Wife Gets Home.It is an advice book for new fathers.An appropriate market segment for this book could be based on the family life cycle.

Accepted Answer

Since the book is aimed at new fathers, it would be appropriate to market it to men who have recently become parents. This demographic would be a part of the family life cycle segment that includes newlyweds and couples with young children. Therefore, option A is true.

Question 20

One of the forces influencing the growth of one-to-one marketing is more demanding and time-poor consumers.

Accepted Answer

Other influences include a more diverse society,a declining brand loyalty,and the explosion of new media alternatives.

Quiz 7: Segmenting, targeting, and Positioning