Deck 6: Market Segmentation

Question 1

A health plan has developed different web pages for corporate customers based on the number of employees they have. This is an example of what segmentation strategy?

A) Niche
B) Micro marketing
C) Mass marketing
D) Multisegment

Answer 1

D

Question 2

Market segmentation by ethnicity is what type of segmentation?

A) Cohort
B) Sociodemographic
C) Cultural
D) Psychographic

Answer 2

B

Question 3

In recognition of the ethnic diversity within the U.S. population, the federal government requires CLS standards. CLS standards are:

A) quality care standards healthcare organizations must meet for all ethnic populations if the healthcare organization receives federal funds.
B) requirements that all healthcare personnel must receive cultural competency continuing education training yearly if the healthcare organization receives federal funds.
C) standards for cultural and linguistically appropriate services.
D) standards for care, life support notification, and sepsis guidelines for ethnically diverse populations.

Answer 3

C

Question 4

Psychographic segmentation refers to segmenting the market by:

A) attitudes, interests, and opinions.
B) psychological profile and attitude.
C) age, gender, and lifestyle.
D) the defining events that shape their values.

Question 5

Social class is often used as a basis for psychographic segmentation because individuals within the same social class:

A) are often in the same social clubs and can be reached with the same promotional vehicles.
B) have similar attitudes and similar purchasing patterns.
C) often have a similar sociodemographic profile.
D) are often very homogeneous on all key demographic characteristics important to marketers.

Question 6

Grouping consumers by what they want to gain from the purchase of a product is an example of what form of segmentation?

A) Lifestyle
B) Usage
C) Psychographic
D) Benefit

Question 7

With usage segmentation,

A) the heavy half segment often suffers from the highest rates of obesity.
B) the most important market segment in terms of market strategy is the nonusers.
C) a small percentage of the market often accounts for a disproportionate amount of a product's sales.
D) None of these is correct.

Question 8

The major marketing objective with regards to the heavy half market segment is to:

A) get them to buy more of a product.
B) get them to try other products in the line.
C) maintain their loyalty.
D) There is little need to focus marketing attention on this group.

Question 9

A specialty group analyzed the physicians who referred into the practice. Twenty percent of the physicians referred 65% of all referrals. These doctors sent them all of their referrals for gastroenterology. Forty percent of the doctors on their referral list referred 35%, but they also sent patients to other gastroenterology groups. Forty percent of the physicians in the area did not refer any patients to the practice. What should the marketing strategy objective be for the second group of doctors?

A) Get them to increase their referrals.
B) Maintain their loyalty.
C) Have them talk to the heavy users.
D) Wait until they are unhappy with the other gastroenterology group to whom they are referring.

Question 10

Usage segmentation in health care has been applied in situations in which:

A) physicians use their skills in many different geographic locations.
B) the efficacy of a pharmaceutical drug can be used in alternative ways.
C) use of alternative distribution channels can be viable for the distribution of the service.
D) None of these is correct.

Question 11

Which of the following is a strong component of brand loyalty?

A) Repeat purchase
B) Psychographic relevance
C) Trust
D) Cohort-specific purchases

Question 12

Grouping people together by a set of events that have shaped their values is referred to as:

A) benefit segmentation.
B) usage segmentation.
C) value segmentation.
D) cohort segmentation.

Question 13

Which of the following is a key difference between a generation and a cohort?

A) Events that shape a cohort stay with them even as they age.
B) Cohorts are more fluid than generations, which have a defined time period.
C) Generations tend to be older.
D) Cohorts maintain their attitudes and values even as they age.

Question 14

Which cohort exhibited the trait of being a compliant patient?

A) World War II
B) Gen X
C) Boomers
D) Millennials

Question 15

With regard to health care, the boomers, compared to the post-war cohort and the World War II cohort, have been found to:

A) be more willing to comply with the clinician's orders.
B) feel less inclined to be constrained to their local care options.
C) seek out additional information about their care and treatment.
D) None of these is correct.

Question 16

Dividing or segmenting patients into risk levels, as is being done by many ACOs, is a form of what type of segmentation strategy?

A) Population
B) Cohort
C) Risk generation
D) VAL PRIZM

Question 17

In segmenting business markets, the size of the company is often particularly relevant as it relates to which of the following?

A) Differing levels of price sensitivities
B) The varying types of occupational injuries
C) The problems that may occur with labor unions in terms of health negotiations
D) All of these are correct.

Question 18

The Standard Industrial Classification (SIC) code is a classification system based upon which of the following?

A) The way in which a business standardizes its operations according to ISO 90001
B) A federal government classification of the major business activity or service within which the firm operates
C) The standard insurance classification for the risk of insuring a company's employee population
D) The insurance industry classification of a company's risk-adjusted status for rating premiums

Question 19

The value to segmenting only exists when:

A) it leads to a differential response among customers.
B) a company can identify a segment that is larger than any other segment.
C) a segment has unique healthcare needs.
D) a segment tends to have values that are different than other segments.

Question 20

The ideal way to segment is by:

A) psychographics.
B) attitude.
C) behavior.
D) demographics.

Question 21

Sociodemographic segmentation includes gender, age, ethnicity, race, and geography.

Question 22

Promotion cannot be used as the sole approach to bring about a behavioral change in a market segment.

Question 23

Majority concentration is when many organizations focus on the largest customer segment.

Question 24

Although women are greater uses of healthcare services, they incur far less medical expense.

Question 25

The federal government has implemented standards for culturally and linguistically appropriate services, which is an indication of cultural segments.

Question 26

Lifestyle and class is a form of attitude, interests, and opinions (AIO) segmentation.

Question 27

To conduct lifestyle segmentation, market researchers use AIO questions.

Question 28

The PATH Valuegraphic segmentation scheme can be useful to predict the population health of multiple segments.

Question 29

The heavy half phenomenon refers to a small group of consumers who use a disproportionate share of a product.

Question 30

The major marketing objective with the heavy half segment for any organization is to get them to consume more of the product.

Question 31

The law of maximum ophelimity highlights that the people who use most of the healthcare services also buy most of the over-the-counter medical products.

Question 32

Topamax was a pharmaceutical product found to be effective for the treatment of epilepsy and migraines. This would likely lead to a usage segmentation strategy.

Question 33

Trust has been found to a strong determinant of heavy half usage behavior.

Question 34

Classifying consumers into segments based on the degree to which they use or purchase the same brand is loyalty segmentation.

Question 35

Systematic benefit segmentation has been found to be successful when used on an intermittent basis by an organization in conjunction with loyalty segmentation schemes.

Question 36

Cohort segmentation categorizes consumers based on the defining events that have occurred in their lifetime that have shaped their attitudes and values.

Question 37

As a cohort ages, their attitudes and values change to those of the older cohort that preceded them.

Question 38

The boomers are the cohort that has the greatest trust in institutions and authority.

Question 39

There has been an increase in interest in cosmetic surgery among the millennials.

Question 40

For healthcare organizations, the Internet is a cost of entry when it comes to attracting the N-Gen cohort.

Question 41

The cohort most frustrated with the healthcare system to the point of delaying care is millennials.

Question 42

Experience is a major factor that influences brand loyalty.

Question 43

Segmenting industrial markets is the same as segmenting consumer markets.

Question 44

Compared to smaller companies, larger companies are increasingly having a greater percentage of self-insured plan coverage for their employees.

Question 45

The federal SIC Code is a system that describes the major purchasing categories of each company for bidding purposes.

Question 46

Companies that use similar products or services often have other characteristics in common; thus, product use is a valuable segmentation variable of industrial markets.

Question 47

The industrial segmentation scheme most similar to benefit segmentation in consumer markets is the use of purchasing criteria.

Question 48

Unlike consumers, companies cannot be segmented on usage factors to determine heavy half customers.

Question 49

Segmentation should always be done even when it does not relate to purchasing differences among consumers or customers.

Question 50

In terms of segmentation heuristics, the highest level is actual purchase.

Question 51

In terms of the heuristic of segmentation, the lowest level is preferences.