Question 1

In order to use macrolevel bases of segmentation,the business marketer must move beyond secondary sources of information by soliciting input from the sales force or by conducting a special market segmentation study.

Accepted Answer

The answer of In order to use macrolevel bases of...

Question 2

A well-defined segmentation plan will fail without careful attention to implementing the plan.

Accepted Answer

While a well-defined segmentation plan is necessary for success, it is equally important to implement the plan carefully and effectively. Failure to effectively implement the plan can lead to poor results and missed opportunities.

Question 3

The fact that sales and some causal variables are correlated implies that the causal variable "caused" sales.

Accepted Answer

Correlation does not imply causation. Just because two variables are correlated does not mean that one causes the other. There could be other factors at play that are responsible for both variables' behavior.

Question 4

Customers that actively seek business marketing firms that can help them create new value to gain a competitive edge in their markets can be segmented using value-based strategies.

Accepted Answer

Value-based segmentation identifies customers who prioritize value over price and are willing to pay more for superior products or services. These customers are likely to seek out business marketing firms that can help them create and communicate their unique value proposition.

Question 5

Regression models are useful to industrial firms projecting final consumer demand for items of which their products become a part.

Accepted Answer

Regression models can be used to forecast demand for products, including those produced by industrial firms. By analyzing historical data and identifying factors that impact demand, regression models can provide insights into future demand trends and help firms make informed decisions about production levels and inventory management.

Question 6

Because a specific industrial good is often used in different ways,the marketer can divide the market using the NACE?

Accepted Answer

NACE (Nomenclature statistique des activités économiques dans la Communauté Européenne) is a classification system used to group businesses and industries according to their activities. It helps marketers to identify different customer groups by categorizing them based on their industry and business activities. As industrial goods can be used in different industries and for different purposes, the marketer can use the NACE classification to divide the market into segments and target each segment according to their specific needs and requirements.

Question 7

The North American Industrial Classification System (NAICS)is an especially valuable source when segmenting the market on the basis of end use.

Accepted Answer

The NAICS system classifies businesses and industries based on their primary activities or products, making it a useful tool for segmenting markets by end use.

Question 8

Time series techniques are especially appropriate when management believes that sales will behave differently in the future than they have in the past.

Accepted Answer

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Question 9

The cost of research is greater at the macrolevel of segmentation than at the microlevel.

Accepted Answer

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Question 10

In evaluating alternative bases for segmentation,the marketer is attempting to identify good predictors of differences in buyer behavior.

Accepted Answer

Evaluating alternative bases for segmentation involves identifying variables that can effectively distinguish between different groups of buyers based on their behavior or characteristics. This involves finding good predictors that can help the marketer create segments with unique needs, preferences, and purchase behaviors.

Question 11

Qualitative sales forecasting techniques provide a systematic analysis of cause and effect relationships.

Accepted Answer

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Question 12

By directing its resources to all of its customers evenly,the business marketer is less vulnerable to focused competitors that may seek to "cherry pick" the firm's most valuable customers.

Accepted Answer

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Question 13

The cycle component in a time series indicates the long term general movement in the data in one direction.

Accepted Answer

The cycle component in a time series is a repeating pattern that occurs over a period of more than one year. It does not indicate a long term general movement in one direction.

Question 14

If the requirements of segmentation are met,it should provide the business marketer with valuable guidelines for allocating marketing resources.

Accepted Answer

Segmentation allows the business marketer to identify and target specific groups of customers, which in turn can guide the allocation of marketing resources towards those segments with the highest potential for return on investment.

Question 15

The Delphi method constitutes a highly sophisticated quantitative approach to sales forecasting.

Accepted Answer

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Question 16

The personal characteristics of decision-makers in buying centers,such as their decision style and confidence,are examples of macrolevel bases of segmentation.

Accepted Answer

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Question 17

Value-in-use constitutes a microlevel base of segmentation.

Accepted Answer

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Question 18

Buying organizations can be segmented based on the stages of the procurement process,such as new-task or straight rebuy.

Accepted Answer

This statement is true. Buying organizations can be segmented based on the stage of the procurement process, such as new-task or straight rebuy. Other segmentation variables include industry, company size, and geolocation.

Question 19

Time series methods are well suited to short-range forecasting because the assumption that the future will be like the past is more reasonable over the short run than over the long run.

Accepted Answer

Time series methods rely on the assumption that the future follows patterns seen in the past, so this assumption is more likely to hold true over the short term than over the long term when major changes and unforeseen events can occur. Therefore, time series methods are generally more accurate for short-range forecasting.

Question 20

Industrial firms lack the flexibility of their consumer-goods counterparts in moving into and out of market segments.

Accepted Answer

Industrial firms typically have long lead times and high capital investments in production facilities, making it difficult for them to quickly enter or exit market segments compared to consumer-goods companies.

Quiz 4: Segmenting the Business Market and Estimating Segment Demand