Question 1

Market segmentation refers to
A) the philosophy that to do a truly excellent job of marketing, a company should concentrate only one customer segment at a time.
B) aggregating prospective buyers into groups that have common needs but who respond differently to a marketing action.
C) aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.
D) disaggregating prospective buyers from groups into segments of one (individuals) and creating or designing specific products that will satisfy each individual's unique needs.
E) the belief that it is possible to satisfy every customer's needs if you can identify the correct segment within which they belong.

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?
A) Zappos limits its inventory to an extensive selection of high-end fashion footwear.
B) Zappos carries more than 1,000 different brands.
C) Zappos can guarantee overnight shipping to all its customers because they know ahead of time what they will be charged for express service.
D) Zappos is so successful because it has chosen a single mission to "sell shoes and nothing else."
E) Zappos offers a 30/60/90 return policy whereby refunds are based on how long you've had the shoes.

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
A) pay attention to marketing messages.
B) respond similarly to a marketing action.
C) be responsive to marketing research.
D) use the same payment methods.
E) comply with the organization's core values.

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.
A) grouping people randomly within a market
B) grouping people according to similar needs
C) splitting people randomly within a market
D) dividing people into the smallest groups possible
E) identifying potential new buyers who are not yet familiar with a new product

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 __________.
A) market diversification
B) market differentiation
C) market segmentation
D) market augmentation
E) market repositioning

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
A) offering the absolute best selection of shoes and the absolute best service.
B) designing shoes for every type of occasion.
C) dividing all their customers into two distinct segments: people shopping for low price and people shopping for style.
D) offering the best selection of shoes through multiple channels of distribution.
E) maintaining the simplest method of price points to make the purchase process as simple as possible for its customers.

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.
A) market segment
B) demographic cluster
C) organizational buyer group
D) ultimate consumer group
E) qualified prospect group

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
A) identifies a completely new market segment with a product to match it.
B) finds a way of improving service to online customers.
C) takes the customer loyalty training class and decides to quit anyway.
D) finds a shoe-related product that Zappos does not already carry.
E) creates a theme for "Weirdo Wednesday" when company meetings are held.

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 __________.
A) product repositioning
B) points of difference
C) market differentiation
D) product positioning
E) product differentiation

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
A) the relatively heterogeneous groups of prospective buyers that result from the market segmentation process.
B) the relatively homogenous groups of prospective buyers that result from the market segmentation process.
C) the smallest number of buyers that have similar needs but do not react similarly in a buying situation.
D) all buyers of a product or service who have previously purchased a particular firm's products or services and who intend to repeat that purchase sometime in the future.
E) all potential buyers of a product or service who intend to purchase a firm's products or services but who have not yet done so.

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
A) a wide selection of shoes, clothes, accessories, and housewares to people who will buy them online.
B) a wide selection of leather shoes and boots to retailers.
C) all types of shoes, accessories, and clothing to department stores.
D) Spanish novelties and accessories to organizations.
E) shoes in its own retailer stores.

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)
A) respond similarly to marketing messages.
B) have common needs.
C) have similar shopping styles.
D) will become loyal customers.
E) will become stakeholders of the organization.

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
A) was the founder's family name.
B) conveyed in Spanish the type of product sold.
C) inferred how quickly you could access the product.
D) contained letters from the names of the three founders.
E) reflected the brand name of the first line of shoes they sold.

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?
A) Even if a firm finds only one potential market segment, it should take advantage of the opportunity, no matter what.
B) Market segmentation only works for large corporations because small businesses don't have the resources to engage in the process or implement the resulting marketing actions.
C) Governments should not attempt market segmentation because there is no need for them to do so.
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.
E) Market segmentation strategies work less than 25 percent of the time. However, for the instances that it does work, the benefits more than compensate for previous failures.

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
A) represent a large share of the entire market and have buying power.
B) have common needs and respond similarly to a marketing action.
C) have different needs and have potential for future growth.
D) have different needs and respond similarly to market actions.
E) have the potential for future growth and increased profit or ROI.

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' __________.
A) profile of its target market
B) core values with its new owner-Amazon.com
C) ten core values for Zappos' employees
D) qualities required of Zappos' suppliers
E) qualities required of Zappos' retailers

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
A) seeking out new and unusual styles of shoes from all over the world.
B) improving the website to make it faster, more interesting, and fun.
C) seeking out new markets that will go beyond the Internet.
D) finding the fastest and least expensive modes of delivery for its products.
E) finding ways to improve customer-service levels.

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)__________.
A) market segment
B) target market
C) customer base
D) ultimate consumer
E) preferred customer

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
A) consumer differentiation.
B) psychographics.
C) market segmentation.
D) market delineation.
E) aggregation marketing.

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
A) demographic clusters.
B) organizational buyers.
C) ultimate consumers.
D) market segments.
E) qualified prospects.

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

Market segmentation refers to

Which of the following statements about Zappos is most accurate?

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

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

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

Zappos segmentation strategy is based on

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

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

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 __________.

Market segments refer to

primary focus of Zappos' market segmentation strategy is to sell

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

company name Zappos was chosen because it

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

be identified as a market segment,its members must

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

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

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

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

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