Question 1

Market segmentation refers to

Accepted Answer

Market segmentation refers to dividing a market into groups of consumers with similar needs or behaviors who might require different products or marketing mixes. These groups are called segments, and they are identified based on characteristics such as demographic, geographic, behavioral, and psychographic factors. The goal of market segmentation is to identify the most profitable segments and develop marketing strategies tailored to their needs and preferences. Option C is the correct answer because it accurately reflects the definition of market segmentation.

Question 2

Which of the following statements about Zappos is most accurate?

Accepted Answer

Zappos is well-known for carrying a wide range of brands (including both high-end and budget options) and has a reputation for excellent customer service (including free shipping and returns as well as a generous return policy). However, it does not limit its inventory to only high-end fashion footwear, nor does it have a single mission to "sell shoes and nothing else." While Zappos does offer expedited shipping options, it does not guarantee overnight shipping to all customers, and the 30/60/90 return policy applies to all purchases, not just shoes.

Question 3

Market segmentation involves aggregating prospective buyers into groups that have common needs and will

Accepted Answer

Market segmentation is done to identify groups of buyers with similar needs and characteristics so that marketing strategies can be customized accordingly. The goal is to respond similarly to marketing actions, such as pricing, promotions, and product development.

Question 4

Market segmentation stresses __________ and relating them to specific marketing actions.

Accepted Answer

Market segmentation is the process of dividing a market into smaller groups of consumers with different needs or behaviors. By grouping people according to similar needs, marketers can tailor their marketing efforts for specific segments and make their messages more effective. This leads to better customer satisfaction and higher profits for the company.

Question 5

aggregation of prospective buyers into groups that (1)have common needs and (2)will respond similarly to a marketing action is referred to as __________.

Accepted Answer

Market segmentation involves dividing a market into smaller groups of consumers who have similar needs and characteristics. This allows businesses to tailor their marketing efforts and product offerings to specific segments, increasing the chances of success. Market diversification, differentiation, augmentation, and repositioning all refer to different strategies in marketing and do not involve the grouping of prospective buyers.

Question 6

Zappos segmentation strategy is based on

Accepted Answer

Zappos' segmentation strategy is built around offering customers the absolute best selection of shoes (with over 100,000 styles available) and the absolute best service (with free shipping both ways and a 365-day return policy). This strategy is based on the belief that if they provide the best possible experience for their customers, they will become repeat customers and recommend Zappos to their friends and family.

Question 7

marketing,each __________ consists of people who are relatively similar to each other in terms of their consumption behavior.

Accepted Answer

A market segment consists of people who share similar behavior when it comes to consumption of a particular product or service. Demographic clusters and organizational buyer groups may be included in a market segment, but they do not define a market segment themselves. Ultimate consumer group and qualified prospect group are not commonly used terms in marketing segmentation.

Question 8

Hsieh,CEO of Zappos,offers $2,000 to anyone who

Accepted Answer

Hsieh, CEO of Zappos, offers $2,000 to employees who take the customer loyalty training class and decide to quit anyway, as a way to ensure that those who stay are truly committed to the company's culture and values.

Question 9

marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products is referred to as __________.

Accepted Answer

The marketing strategy described in the question is referred to as product differentiation, which involves creating a unique product that is perceived as being different and better than competitors. Product repositioning involves changing the way a product is marketed to better appeal to a different target market, while market differentiation is the process of identifying and creating distinct market segments. Points of difference and product positioning are both related concepts, but do not fully encompass the idea of using various marketing mix activities to differentiate a product.

Question 10

Market segments refer to

Accepted Answer

Market segments are groups of prospective buyers who have similar needs and characteristics, resulting in relatively homogenous segments. This allows marketers to tailor their marketing efforts to better meet the needs of specific segments, leading to more effective marketing strategies and increased sales.

Question 11

primary focus of Zappos' market segmentation strategy is to sell

Accepted Answer

Zappos' market segmentation strategy is focused on selling a wide selection of shoes, clothes, accessories, and housewares to people who will buy them online. This is evident from Zappos' online-only retail model, which allows it to target a larger customer base that prefers to shop online and offers a wide range of products to meet their needs.

Question 12

Market segmentation involves aggregating prospective buyers into groups that (1)will respond similarly to a marketing action and (2)

Accepted Answer

Market segmentation is the process of dividing a large market into smaller homogeneous groups of consumers who have similar needs, interests, and preferences. The purpose of this division is to create a targeted and relevant marketing strategy that will resonate with the specific needs of each group. Therefore, market segmentation involves grouping prospective buyers who have common needs and characteristics. Choices A, C, D, and E are too narrow in scope to be the best answer for this question.

Question 13

company name Zappos was chosen because it

Accepted Answer

Zappos comes from the Spanish word "zapatos" which means shoes, conveying the type of product sold by the company.

Question 14

Which of the following statements regarding market segmentation is most accurate?

Accepted Answer

Market segmentation is the process of dividing a market into smaller groups of consumers with similar needs or characteristics. By doing so, firms can create marketing strategies targeted to those specific segments and increase their sales and profits. Therefore, the statement that best reflects the purpose of market segmentation is D: If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment. Option E is incorrect because market segmentation has a higher success rate than 25 percent in most industries. Options A, B and C are incorrect because they are not accurate nor reflect the advantages of market segmentation.

Question 15

be identified as a market segment,its members must

Accepted Answer

Market segments are groups of consumers who have common needs and respond similarly to marketing actions. This allows companies to tailor their marketing efforts to the specific needs and preferences of each segment, resulting in more effective marketing and higher sales. While representing a large share of the market and having buying power may be relevant factors in identifying a market segment, they are not sufficient on their own. Similarly, potential for future growth or increased profit or ROI may be considerations, but they are not necessary for identifying a market segment.

Question 16

Building open and honest relationships with communication is an example of Zappos' __________.

Accepted Answer

Zappos' ten core values for its employees include building open and honest relationships through communication, so this choice is the most accurate. The other choices are not directly related to this value or the question prompt.

Question 17

According to Toney Hsieh,CEO of Zappos,the greatest amount of time is spent

Accepted Answer

Toney Hsieh, CEO of Zappos, is known for his focus on customer service. He believes that happy customers are the key to success, and therefore, the greatest amount of time is spent on finding ways to improve customer service levels. Zappos is famous for its customer service, offering free shipping and returns, 24/7 call centers, and a customer-friendly website.

Question 18

relatively homogenous group of prospective buyers that results from the market segmentation process is referred to as a(n)__________.

Accepted Answer

A market segment is a relatively homogenous group of prospective buyers that results from the market segmentation process.

Question 19

Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as

Accepted Answer

Market segmentation refers to the process of dividing a larger market into smaller groups of consumers with similar needs or characteristics. This allows marketers to tailor their marketing strategies and tactics to better meet the needs of each segment, improving the effectiveness and efficiency of their efforts.

Question 20

phrase "relatively homogeneous collections of prospective buyers" is most descriptive of

Accepted Answer

The phrase "relatively homogeneous collections of prospective buyers" indicates that the group being referred to in the question shares common characteristics or preferences that make them more likely to respond positively to a particular marketing strategy. This is a key characteristic of market segments, which are groups of consumers who share similar needs, interests, or behaviors. Demographic clusters, organizational buyers, ultimate consumers, and qualified prospects may also share certain similarities, but this answer best reflects the idea of a cohesive group of potential buyers.

Quiz 9: Market Segmentation,Targeting,and Positioning