Deck 7: Segmenting, targeting, and Positioning

Question 1

E&V Bridal Studios is a wedding consulting business designed to appeal to East Asians.At one time it used the same marketing mix for all of its customers,but it has discovered that it needs a different marketing mix to appeal to its ethnic customers.
Refer to E&V Bridal Studios.Chinese brides want elaborate red gowns,and Vietnamese brides wear a brocaded gown with long sleeves and a Mandarin collar.Which procedure does E&V Bridal Studios use to divide its large market?

A)micromarketing
B)positioning
C)market segmentation
D)cannibalization

Answer 1

C
Dividing one large market into divisions based on a variable such as size is called market segmentation.

Question 2

To be useful,a segmentation scheme must produce segments that meet four basic criteria.What are they?

A)accessibility,flexibility,reliability and homogeneous
B)tangibility,flexibility,causality,and accessibility
C)substantiality,measurability,accessibility,and responsiveness
D)reliability,flexibility,tangibility,and accessibility

Answer 2

C

Question 3

ProtecTV is a product that selectively mutes words and phrases some people find objectionable.It can be connected to a television,VCR,DVD player,or satellite TV system.The manufacturer of ProtecTV targeted parents who did not want their children exposed to what they consider to be offensive language.
Refer to ProtecTV.By helping parents who want to protect the innocence of their children,which type of segmentation is ProtecTV using?

A)benefit
B)demographic
C)geodemographic
D)competitive

Answer 3

A
ProtecTV is designed to satisfy parents' needs to protect their children.

Question 4

What is the term for a subgroup of individuals or organizations sharing one or more characteristics that cause them to have relatively similar product needs?

A)a market universe
B)a market segment
C)an aggregated market
D)a segmentation base

Question 5

A group of high school students stop by a sporting goods store.The store has just received a new shipment of high-end racing bicycles.The bicycles range in price from $1,200 to $3,000.All of the students want one of these new bikes,but none has the means to buy one.Is this group of consumers a potential market for the expensive bikes?

A)Yes,they are a potential market since they are interested in the bikes.
B)No,they do not have the ability to purchase at this time.
C)No,to qualify as a market,they must need the product.
D)Yes,they are a market because this product could satisfy their consumer wants and desires.

Question 6

ProtecTV is a product that selectively mutes words and phrases some people find objectionable.It can be connected to a television,VCR,DVD player,or satellite TV system.The manufacturer of ProtecTV targeted parents who did not want their children exposed to what they consider to be offensive language.
Refer to ProtecTV.What demographic segmentation variable has its manufacturer used to identify its target market?

A)gender
B)benefit
C)usage rate
D)family life cycle

Question 7

What is the purpose of market segmentation?

A)reduce the market to a specific size that the firm can handle
B)divide the market into equal size and profit regions for sales territories
C)enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups
D)develop a generalized definition of the market as a whole

Question 8

E&V Bridal Studios is a wedding consulting business designed to appeal to East Asians.At one time it used the same marketing mix for all of its customers,but it has discovered that it needs a different marketing mix to appeal to its ethnic customers.
Refer to E&V Bridal Studios.Which segmentation variable does the company rely on to identify its market?

A)geographic
B)socio-cultural
C)socioeconomic
D)demographic

Question 9

What is the term for a group of people or organizations that has wants and needs that can be satisfied by particular product categories,has the ability to purchase these products,and is willing to exchange resources for the products?

A)a firm
B)a base
C)a market
D)a target

Question 10

Which of the following is the process of dividing a market into meaningful groups that are relatively similar and identifiable?

A)perceptual mapping
B)positioning
C)micromarketing
D)market segmentation

Question 11

A market is best described as people or organizations that have which of the following?

A)the ability,willingness,and power to buy.
B)a medium of exchange and products they desire.
C)needs and wants and an ability and willingness to buy.
D)communication,financial,and capital resources.

Question 12

ProtecTV is a product that selectively mutes words and phrases some people find objectionable.It can be connected to a television,VCR,DVD player,or satellite TV system.The manufacturer of ProtecTV targeted parents who did not want their children exposed to what they consider to be offensive language.
Refer to ProtecTV.What is the primary market segment for ProtecTV?

A)all parents
B)educators
C)children under the age of 12
D)parents with preteens in their households

Question 13

Market segmentation can assist marketers to do all of the following?

A)develop more precise definitions of customer needs and wants.
B)identify which variable base should be used for segmenting.
C)more accurately define financial objectives.
D)improve human resource allocation.

Question 14

A manufacturer of lenses used in microscopes,binoculars,and telescopes has segmented its market into scientific equipment manufacturers,sporting equipment manufacturers,and retailers who sell replacement lenses.In order for this segmentation scheme to be successful,all of the following criteria must be met EXCEPT which of the following?

A)substantiality
B)accessibility
C)identifiability and measurability
D)complexity

Question 15

Which of the following is one of the four criteria identified in your text for successful market segmentation?

A)sustainability
B)immeasurability
C)accountability
D)accessibility

Question 16

Hildy Webb and LaTishe Brown own Creative Catering and would like to improve customer satisfaction and increase repeat business.When you ask them to describe a typical customer,they say it is impossible and explain that with corporate functions,family affairs,and fundraisers,they do not have a typical customer.Why should they use market segmentation?

A)It will enable them to build an accurate description of customer needs by group and to design a marketing mix to fit each segment.
B)It will allow Creative Catering to reduce the size of the market it serves.
C)It will allow Creative Catering to learn how to group these markets together into one market to serve all of them adequately.
D)It will help develop a generalized definition of the market as a whole and reveal the optimal marketing mix for this market.

Question 17

E&V Bridal Studios is a wedding consulting business designed to appeal to East Asians.At one time it used the same marketing mix for all of its customers,but it has discovered that it needs a different marketing mix to appeal to its ethnic customers.
Refer to E&V Bridal Studios.E&V Bridal Studios markets its services to its customers by using ethnicity to divide its customers into segments.Which of the following would ethnicity be classified as?

A)perceived image.
B)accessibility quotient.
C)environmental control.
D)segmentation base.

Question 18

E&V Bridal Studios is a wedding consulting business designed to appeal to East Asians.At one time it used the same marketing mix for all of its customers,but it has discovered that it needs a different marketing mix to appeal to its ethnic customers.
Refer to E&V Bridal Studios.What type of segmentation strategy does the wedding consultant use?

A)geographic marketing
B)undifferentiated targeting
C)multisegment marketing
D)concentrated targeting

Question 19

The process of market segmentation involves breaking down a heterogeneous market into homogeneous and identifiable segments.If this process is carried out to include the whole world,which of the following would be most accurate?

A)individual segmentation could not be used by small firms.
B)all individuals have the same needs in spite of cultural differences.
C)every individual in the world is a market segment.
D)individual segmentation would control the demand for products.

Question 20

ProtecTV is a product that selectively mutes words and phrases some people find objectionable.It can be connected to a television,VCR,DVD player,or satellite TV system.The manufacturer of ProtecTV targeted parents who did not want their children exposed to what they consider to be offensive language.
Refer to ProtecTV.ProtecTV is the only product of its kind that has an expandable dictionary.Parents can add words and phrases they find offensive,and the additional words will be deleted from soundtracks and captioning.Which type of strategy is ProtecTV using?

A)repositioning
B)product differentiation
C)market integration
D)undifferentiated targeting

Question 21

Budweiser beer was one of the official sponsors of the 2010 World Cup soccer championship held in South Africa.As such,Budweiser beer was the only beer available in the soccer stadium where the games were played.South Africans were outraged because they prefer dark,more full-bodied beer and equate drinking Bud to drinking water.In this case,which type of segmentation was NOT incorporated into the marketing strategy?

A)geographic
B)economic
C)demographic
D)usage-rate

Question 22

Military Spouses is the only publication in the world that targets readers who "are married to the military." Its content reflects the unique set of challenges,hardships,and rewards to those whose spouses are in the military.The marital status that has been used to distinguish the market for this magazine is an example of which of the following?

A)perceived variable
B)accessibility quotient
C)mass market
D)segmentation base

Question 23

Every six months or so,some manufacturer introduces a new shape or colour for the boxes that house the hardware to run PCs.These companies contend beige is boring,and people are ready for "something fun." These manufacturers ignore the fact most Canadians like their technology in plain wrappers.These bright colours and odd shapes have failed because the market segment to which they are targeted lacks which of the following?

A)substantiality
B)identifiability and measurability
C)responsiveness
D)reliability

Question 24

You would expect to find more stores targeting hunters in Northern Ontario than in Southern Ontario because hunting is a more popular pastime in rural areas than urban.A national chain of sporting goods stores would likely use which type of segmentation when stocking hunting merchandise?

A)geographic
B)economic
C)demographic
D)geodemographic

Question 25

Listerine Essential Care toothpaste is designed to reduce plaque and to prevent gingivitis.Its ads state,"After age 35,3 out of 4 adults have some form of gum disease." The toothpaste is targeted to the market segment over the age of 35.This age variable that has been used to distinguish the market for this toothpaste is an example of which of the following?

A)perceived variable
B)differentiation guide
C)mass market
D)segmentation base

Question 26

Cindy Patel is the new owner of a stationery shop.She understands the need to segment her market,and available marketing research indicates there is much demand in the community for personalized gifts.Patel has few resources and cannot engage in intensive consumer research to precisely identify a segment.Which of the following strategies would you suggest she employ?

A)develop an undifferentiated strategy,because it is not a large community and she could create a single marketing mix that would serve the entire community
B)employ a macro segmentation strategy because the data needed for such a strategy are both easy to get and fit her needs exactly
C)use a single-variable strategy because it offers an inexpensive alternative that would not require much experience to employ
D)use a multiple-variable segmentation strategy because it is easier to use than single-variable segmentation

Question 27

What is the term for characteristics of individuals,groups,or organizations that marketers use to divide a total market into segments?

A)differentiation guides
B)segmentation bases
C)perceptual maps
D)responsiveness quotients

Question 28

If a market segment is especially motivated by coupons in newspapers,which segmentation success criterion is most influential in the success of this program?

A)responsiveness
B)identifiability and measurability
C)substantiality
D)accessibility

Question 29

Serving the specific needs of this segment must be commercially viable,even if the number of potential customers is small.A selected segment must be large enough to warrant developing and maintaining a special marketing mix according to the criterion of which of the following?

A)causality
B)accountability
C)responsiveness
D)substantiality

Question 30

DCS Corporation makes barbecue grills.It has expanded into high-priced,multipurpose barbecues for people who want to be able to cook all their food outside.Facing little competition,DCS designed an excellent line of specialty barbecues,had good distribution,used effective promotion with this market,and within four years had a respectable market share.Yet financial losses every year have caused DCS to drop this line.What might this market segment,relative to the resources devoted to it,have lacked?

A)reliability
B)identifiability and measurability
C)substantiality
D)accessibility

Question 31

The Middleton Health Club has a new fitness program for expectant mothers.After flyers were placed at the offices of area obstetricians,Middleton's class filled up within two days.Which segmentation success criterion was most influential in the success of this promotion?

A)responsiveness
B)identifiability
C)measurability
D)causality

Question 32

A manufacturer of blankets knows heavy 100 percent wool blankets sell better in the Maritimes where the winters are harsh and that lighter-weight blankets sell better in Southern British Columbia,where mild winters require fewer and lighter covers for the bed.Segmenting the market according to climate is an example of which type of segmentation?

A)psychographic
B)lifestyle
C)geographic
D)demographic

Question 33

What is meant by the requirement for a market segment to be responsive?

A)The segment identified by a marketer should differ in how it responds to the marketing mix when compared to another segment confronted with the same mix.
B)All the segments identified by a marketer should respond to the marketing mix.
C)All the segments identified by a marketer should not respond to the marketing mix.
D)The segments identified by a marketer should not differ in the level of their responsiveness to the marketing mix.

Question 34

The city of Blossom Valley has a job training program for the homeless but has had a difficult time reaching this group with information about the program even though radio and television stations have provided public service advertisements free of charge.This illustrates a segmentation problem with which of the following?

A)substantiality
B)identifiability and measurability
C)responsiveness
D)accessibility

Question 35

The marketing researcher for Chickadee,a manufacturer of designer clothing for infants and toddlers,has submitted a report on potential segments for expansion of its marketing efforts.She noted an increase of professional women over the age of 35 who are leaving their jobs to have their first babies.She described this segment as having substantiality.What does this mean?

A)The segment has enough special stores,magazines,and other outlets that it will be possible to direct advertisements at this group.
B)The segment is large enough to permit a profitable market effort toward its members.
C)The segment exhibits a response rate to marketing variables different from the rates of other segments.
D)The segment is too large and needs to be reduced to a more easily identifiable and measurable size.

Question 36

What is the term for the segmenting of markets based on the region of the country or the world,market size,market density (number of people within a certain unit of land),or climate?

A)community regionalization
B)geographic segmentation
C)geodemographic segmentation
D)demonstrable regionalization

Question 37

SRD Research Firm has conducted marketing research on the market for concrete siding for homes.The research firm has determined there are thousands of homeowners who want the security,safety,warmth,and stability provided by concrete siding.These homeowners are generally married and between 25 and 54 years of age.They tend to live in suburban neighbourhoods and most subscribe to lifestyle magazines.If you were interpreting these results,what might you suggest that SRD do?

A)conduct additional research because it has no idea about the measurability of its segments
B)examine the research report again to see if it can determine segment accessibility
C)conduct a follow-up analysis to determine if the segments it might choose would respond differently from other segments to its marketing strategy
D)not segment the concrete siding market because the only market for siding is contractors who build the homes

Question 38

Almost all cell phones sold in Canada are sold at subsidized prices,with expensive plans.Almost all cell phones sold in Europe are sold at full price with cheaper plans.A cell phone manufacturer knowing this information could use which type of segmentation when selling its phones internationally?

A)geographic
B)economic
C)demographic
D)benefit

Question 39

Market researchers estimate thousands of Canadians have high blood pressure and do not know it because they do not have annual medical exams.A pharmaceutical company that has developed a medicine to reduce blood pressure should not count on this group to be a good target market because the group lacks which of the following?

A)both accessibility and responsiveness
B)accountability
C)both accessibility and substantiality
D)substantiality,identifiability,and measurability
08-109

Question 40

The United Way wants to identify segments by their readiness to participate in a drug and alcohol program or in prenatal care.The agency will need to gauge whether there are enough people to justify setting up the service.What is the first segmentation criterion problem that would greet this proposal?

A)responsiveness
B)identifiability and measurability
C)accessibility
D)responsibility

Question 41

Chatelaine magazine targets what it calls "Chatelaine jugglers," defined as 25- to 44-year-old women who must juggle family,husband,and job.According to a Chatelaine ad,"She's the product of the 'me generation,' the thirty-something woman who balances home,family,and career- more than any generation before her,she refuses to put her pleasures aside.She's old enough to know what she wants.And young enough to get it." Which type of segmentation is this?

A)demographic and psychographic
B)benefit desired and usage rate
C)geodemographic and benefit desired
D)demographic and usage rate

Question 42

SM: The Magazine for Single Mothers was introduced by Mystic Publications,Inc.in the fall of 2006.The first national bimonthly consumer magazine for single mothers,SM has an independent editorial spirit and addresses the distinctive legal,family,and financial concerns of the many single mothers in North America.The segmentation base used to define the publication's target market was based on which variable?

A)geodemographic
B)geographic
C)demographic
D)lifestyle

Question 43

General Mills,Inc. ,is the owner of the Betty Crocker brand.The Betty Crocker catalogue sells cooking equipment and tableware and was initially targeted to women 45 and older.In 2001,General Mills decided to revamp the catalogue to reach women between the ages of 25 and 45.What demographic variables did General Mills use to segment its market?

A)gender and age
B)lifestyle,gender,and age
C)gender,age,benefit,and family life cycle
D)benefit and age

Question 44

The James Hardie Siding Company sells concrete siding.It was having little luck targeting contractors because concrete siding is difficult to install and shows every flaw if a house is incorrectly framed.So Hardie decided to target homeowners who wanted the security of knowing their siding was guaranteed not to rot or crack for 50 years.In terms of psychographic segmentation,which type of variable did the siding company use?

A)lifestyle
B)motives
C)benefits
D)demographic

Question 45

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.
Refer to Clearing Skies Press.What demographic variables have been used to define the market for this book?

A)benefit desired and lifestyle
B)gender and family life-cycle stage
C)age,gender,and personality
D)benefit desired and gender

Question 46

Atomic Ranch is a new magazine that targets people who grew up in ranch-style houses,now own ranch-style houses,and appreciate articles about the history of the style and sensitive makeovers that keep the essential ranch style while allowing for modern conveniences.Which type of variables does this new publication rely on to identify its target market?

A)psychographic
B)demographic
C)usage rate
D)family life-cycle

Question 47

Moosehead became a title sponsor of Billboard's annual Filipino Music Awards as a means of extending its two-year-old Moosehead Live music-driven promotion platform targeted to Filipino Canadians.How does sponsorship of this event benefit Moosehead?

A)It allows Moosehead to use niche marketing to reach a segment that lacks accessibility.
B)Statistics indicate Filipino Canadians are migrating to cities where Heineken is popular.
C)It allows the beer manufacturer to take advantage of this large segment of the Canadian population.
D)Filipinos prefer their national beer San Miguel but when it is not available they want to identify with a Canadian brand.

Question 48

NASCAR racing fans are some of the most diverse and loyal fans in the world.They will stand in the pouring rain,the freezing cold,or the blistering heat for hours to shake the hand and get the autograph of a NASCAR super driver.These fans are not concentrated in any one area,but are dispersed throughout the United States and Canada.Which type of segmentation would be most effective to determine a target market for a website designed to market NASCAR memorabilia?

A)demographic
B)psychographic
C)geodemographic
D)usage rate

Question 49

Which of the following businesses would be most likely to use family life-cycle segmentation?

A)businesses that produce and market computer software and hardware
B)the snack industry
C)fast-food restaurants
D)wedding planners,couples-only resorts,and daycare centres

Question 50

Which of the following divides individuals into groups according to the way they spend their time,the importance of items in their surroundings,their beliefs,and socioeconomic characteristics?

A)life-cycle segmentation
B)temporal segmentation
C)lifestyle segmentation
D)microsegmentation

Question 51

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.
Refer to Clearing Skies Press.What is the book positioned on the basis of?

A)product class
B)family life cycle
C)use or application
D)product user

Question 52

The demographic factors of gender,age,and income often do not sufficiently explain why consumer buying behaviour varies.Frequently,differences in consumption patterns among people of the same age and gender result from their being in different stages of which of the following?

A)internalization
B)segmentation
C)the family life cycle
D)perceptual positioning

Question 53

Which segmentation is based on personality,motives,and lifestyle?

A)psychographic
B)demographic
C)benefit
D)family life-cycle

Question 54

While most marketing to Generation Y tries so hard to be hip that it borders on parody,Vans has kept the decades-old brand real and vital for Gen Yers.Marketing programs the footwear manufacturer uses to reach Gen Yers include the Vans Skate Parks,which operate in malls around the country;the wildly successful Vans Warped Tour for alternative music;and the Vans Triple Crown,the brand's answer to the X Games.The segmentation plan used by Vans relies heavily on which type of segmentation?

A)ethnicity
B)income
C)age
D)gender

Question 55

In Miami,the most popular Cuban radio station starts broadcasting in Russian for two hours daily to reach the 300,000 Russian-speaking people who live in South Florida.What type of segmentation is the radio station using?

A)usage rate
B)ethnic
C)socioeconomic
D)geographic

Question 56

Ten Thousand Villages is a nonprofit retail store that sells gift items made by artisans from over 30 different countries.This store provides employment to craftspeople in developing nations and markets their handiwork at a fair price.The store defines its market segment as people who believe in helping others and who feel good about helping others whenever possible.Which type of segmentation does the store use?

A)demographic
B)psychographic
C)geodemographic
D)ethnic

Question 57

Income,ethnic background,gender,and age are all examples of which type of segmentation bases?

A)geodemographic
B)organizational
C)demographic
D)socioeconomic

Question 58

What do marketers use to segment markets because this information is widely available,and factors such as age or gender are often related to consumer purchasing and consumption behaviour?

A)benefits
B)psychographics
C)demographics
D)socio-cultural attributes

Question 59

Women have been treated as second-class citizens by the sporting goods industry,but in 2002,sporting goods manufacturers and retailers began aggressively pursuing this market.Nike opened two women-only boutiques called Nike Goddess to test how receptive women are to its new merchandising concepts.Which type of demographic segmentation is the sporting goods industry using?

A)lifestyle
B)usage rate
C)benefit
D)gender

Question 60

Which type of segmentation do magazines such as Martha Stewart Living,Better Homes & Gardens,and other magazines targeted to people who are interested in improving their personal spaces rely on?

A)psychographic
B)demographic
C)usage rate
D)family life-cycle

Question 61

Which of the following proposes that a minority of a firm's customers purchase a majority of the volume of the product?

A)the majority myth
B)the equity fallacy
C)the 80/20 principle
D)the cannibalization rule

Question 62

Which of the following expressions or sayings best describes why marketers find geodemographic segmentation so effective?

A)A bird in the hand is worth two in the bush.
B)Every action has an opposite and equal reaction.
C)Birds of a feather flock together.
D)Don't put all of your eggs in one basket.

Question 63

A 19-year-old college student might be a "party animal" living in a dorm.Another student might be a husband with a small child and a full-time job.If you were in charge of a marketing program aimed at these men,what segmentation technique would be the easiest to employ that might help you to distinguish between them?

A)age cohort analysis
B)benefit
C)product differentiation
D)concentration

Question 64

Ever since Hunter got his new Shell MasterCard,which gives him a 5 percent rebate on all purchases of Shell gas,he will buy gas only at stores that sell Shell gas.Shell introduced its credit card plan as a means of implementing which type of segmentation?

A)lifestyle
B)motive
C)usage-rate
D)demographic

Question 65

The public transportation system in the Toronto area conducted a survey that revealed respondents could be assigned to one of four categories: (1)people who never used mass transit, (2)people who used mass transit in the past but not now, (3)people who used mass transit occasionally,and (4)people who used mass transit regularly.These groups have significantly different perceptions about transportation alternatives.Which type of segmentation is this?

A)demographic
B)benefit
C)aggregate
D)usage-rate

Question 66

Five statistically distinct health segments in the general population have been identified.One basis for this segmentation was whether a consumer had regular checkups or sought medical treatment only when injured or sick.Which segmentation could be used by health providers to reach these market segments?

A)demographic
B)aggregate
C)usage-rate
D)economic

Question 67

Karry-Lite,the manufacturer of lightweight suitcases with wheels,uses as its slogan,"Takes the 'lug' out of luggage." Which type of segmentation is illustrated by this slogan?

A)geodemographic
B)benefit
C)functional
D)feature-based

Question 68

The Grief Store sells keepsake urns,cremation urns,funeral jewellery,and books on how to cope with the grief resulting from the death of a loved one.Which type of segmentation is the Grief Store using?

A)benefit
B)lifestyle
C)motive
D)family lifestyle

Question 69

Reader's Digest magazine plans to send to millions of people with different medical conditions,such as high blood pressure or high cholesterol,a booklet filled with articles and prescription-drug ads,all about the very condition each subscriber has.Which of the following best describes how Reader's Digest is applying benefit segmentation?

A)developed on the basis of what a product will do for the customer rather than on buyer characteristics.
B)used to market to organizations but not to consumers.
C)established to easily break down the market into the most profitable segments.
D)the strategy of building a competitive advantage over the competition.

Question 70

What is the term for a method that clusters potential customers into neighbourhood lifestyle categories and is a combination of geographic,demographic,and lifestyle segmentation?

A)geodemographic segmentation
B)microsegmentation
C)socio-cultural segmentation
D)lifestyle segmentation

Question 71

When asked to name a brand of sports drink,most people will answer Gatorade,and some will respond with Powerade also.But people with diabetes who still need to replenish electrolytes lost during activity or illness cannot drink these sports drinks because they are high in sugar.As a result,a manufacturer has developed Champion Lyte,which contains no sugar.Which type of segmentation did the manufacturer of Champion Lyte use to identify its market?

A)geodemographic
B)usage-rate
C)demographic
D)benefit

Question 72

General Mills offers a deal where its cereal users can collect box tops and submit them to General Mills to earn money for their children's schools.This program,called the Box Tops for Education Program,is a means of changing light users into heavier users.Which form of segmentation is this?

A)lifestyle
B)motive
C)usage-rate
D)demographic

Question 73

Everyone who is anybody in Anytown can't wait to get a copy of Soiree magazine.The magazine is targeted to the upper middle and upper classes and features articles on how they work and play.Which type of segmentation is the editor of Soiree magazine relying on?

A)geodemographic
B)graphic
C)benefit
D)socioeconomic

Question 74

Why are many retail firms interested in customer loyalty cards and programs?

A)Roughly 80 percent of the profit comes from 20 percent of the sales.
B)Roughly 80 percent of a firm's customers are repeat business.
C)Roughly 50 percent of a firm's customers purchase 80 percent of the sales volume of the product.
D)Roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product.

Question 75

Tall Paul's Tall Mall is the only furniture manufacturer that makes furniture to meet the needs of people who are over 6'6" tall.These people find furniture designed for average-sized people to be cramped and uncomfortable.Which type of segmentation does Tall Paul's use?

A)geodemographic
B)benefit
C)demographic
D)psychographic

Question 76

If you wanted to introduce a magazine devoted to providing information on how to live off the land in Canada,you would be likely to target western Canadian men who have a strong need for individualism and limited government regulations.In other words,you would probably use which type of segmentation?

A)socio-cultural
B)geodemographic
C)attitudinal
D)situational

Question 77

You are an advertising manager for a company that sells health and fitness equipment to upscale professionals between the ages of 25 and 45.Your firm advertises during drive time on easy-listening radio stations and on television on the A&E and the Discovery channels.On what basis are you most likely to segmenting this market?

A)region
B)usage
C)stage of family life cycle
D)lifestyle

Question 78

What is the term for the process of grouping customers into market segments according to what is sought from the product?

A)benefit segmentation
B)value-added segmentation
C)lifestyle segmentation
D)macrosegmentation

Question 79

A number of plastic surgery groups are making use of loyalty cards.Patients who have five procedures performed at their offices will receive either a free procedure or a discount off another more complex surgical procedure.Aimed at patients who get maintenance treatments such as Botox or regular face peels,the loyalty cards may be used toward any type of surgical procedure.Which type of segmentation is this?

A)demographic
B)benefit
C)usage-rate
D)economic

Question 80

ThermaCare air-activated heat wraps are meant to be wrapped around sore muscles and joints.The product is advertised as a powerful pain reliever and a source of deep muscle relaxation.Its soothing warmth can work at night while you sleep to restore your body.Which type of segmentation is the manufacturer of ThermaCare heat wraps using?

A)geodemographic
B)functional
C)benefit
D)feature-based