Question 1

________ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.

Accepted Answer

Psychographic segmentation divides buyers into segments based on their lifestyle, attitudes, and personality characteristics. It is based on the idea that people's psychological makeup influences their purchasing decisions and preferences. This type of segmentation is useful for companies that want to understand the underlying motivations and values of their target customers.

Question 2

Which of the following variables are the most popular for marketers to use in segmenting customer groups?

Accepted Answer

C

Question 3

Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?

Accepted Answer

Delta Motorworks is segmenting its market based on demographic variables like age, gender, and income, which falls under demographic segmentation.

Question 4

The customer-driven marketing strategy involves four steps: market segmentation, market targeting, positioning, and differentiation.

Accepted Answer

The customer-driven marketing strategy does involve these four steps of market segmentation, market targeting, positioning, and differentiation.

Question 5

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Accepted Answer

Positioning refers to the process of creating a unique image and identity for a product or service in the minds of the target market. This involves identifying the key attributes and benefits that differentiate the offering from competitors and highlighting them through marketing communications and other elements of the marketing mix. By developing a strong and differentiated position, a company can build brand equity and attract and retain loyal customers.

Question 6

________ involves actually distinguishing the firm's market offering to create superior customer value.

Accepted Answer

Differentiation involves creating a unique offering in the market that provides superior value to customers, thereby setting the firm apart from competitors. Mass customization, market segmentation, and targeting are strategies that support differentiation, while diversifying involves expanding into new markets or industries.

Question 7

________ consists of evaluating each market segment's attractiveness and selecting one or more segments to enter.

Accepted Answer

Market targeting is the process of evaluating different market segments and selecting one or more to enter. This involves analyzing the attractiveness of each segment based on factors such as size, growth potential, competition, and compatibility with the company's resources and capabilities. Once a target market has been selected, the company can then develop a marketing mix that is tailored to the needs and preferences of that segment.

Question 8

________ can be a poor predictor of a person's health, work or family status, needs, or buying power.

Accepted Answer

Age can be a poor predictor of a person's health, work or family status, needs, or buying power because individuals of the same age can have vastly different experiences and circumstances. For example, a 65-year-old retiree may have very different health, financial, and lifestyle needs compared to a 65-year-old still in the workforce. Therefore, relying solely on age to make assumptions about a person's characteristics can be inaccurate.

Question 9

________ segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

Accepted Answer

Demographic segmentation is used to divide the market into segments based on variables like age, gender, income, and education. This information helps businesses to understand the characteristics of their customers and tailor their marketing efforts to reach specific consumer groups.

Question 10

Which of the following is NOT one of the major variables used in segmenting consumer markets?

Accepted Answer

The major variables used in segmenting consumer markets are demographic, geographic, psychographic, and behavioral. Ethical is not one of the major variables used in segmentation.

Question 11

A company selling child-care products ran a television ad depicting women as being primarily responsible for childcare. Many women viewers considered this regressive, alleging that the ad failed to recognize the much more diversified role of women in today's world. This is an example of ________.

Accepted Answer

The situation described involves stereotyping, as the ad unfairly portrays women as being solely responsible for childcare and ignores the diversity of women's roles in today's society.

Question 12

Mass marketing involves identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.

Accepted Answer

Mass marketing involves targeting the entire market with a single marketing mix, rather than tailoring it to specific segments.

Question 13

Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods. This is an example of ________.

Accepted Answer

Geographic segmentation involves dividing a market into different geographical units, such as regions, cities, or neighborhoods, and targeting each with a customized marketing mix tailored to the specific needs and preferences of that area.

Question 14

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes many college students, as an untapped group of potential customers for their new line of products, they were engaging in ________.

Accepted Answer

Marketers at Fair & Leigh Inc. are selecting a specific group of potential customers, the Millennials, which is an example of market targeting.

Question 15

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

Accepted Answer

Market segmentation involves identifying and grouping buyers into smaller segments based on their unique characteristics, needs, and behaviors. This allows companies to tailor their marketing strategies and mixes to better meet the specific needs and wants of each segment, ultimately leading to more effective and efficient marketing efforts.

Question 16

Explain the four major steps in designing a customer-driven marketing strategy.

Accepted Answer

The answer of Explain the four major steps in designing...

Question 17

Companies know they cannot appeal to all buyers in the marketplace, or at least not in the same way. Reasons for this include all of the following EXCEPT ________.

Accepted Answer

The statement lists all of the reasons for companies not being able to appeal to all buyers except for D, which states that companies need more information to offer the right products to the right customers. This is not a reason why companies cannot appeal to all buyers, but rather a factor that can help them better target their marketing efforts.

Question 18

________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods.

Accepted Answer

Geographic segmentation involves dividing the market based on geographical factors such as regions, states, counties, cities, or even neighborhoods. This allows businesses to tailor their marketing efforts to meet the specific needs and preferences of consumers in different locations.

Question 19

What is differentiation?

Accepted Answer

The answer of What is differentiation?...

Question 20

With technology advances making it simple to contact many customers at once, companies have moved toward mass marketing over target marketing.

Accepted Answer

Mass marketing has become less common as companies now focus on target marketing to better meet the specific needs and preferences of different customer segments, thanks to data analytics and digital marketing tools.

Quiz 7: Customer Value-Driven Marketing Strategy: Creating Value for Target Customers