Question 1

An American cola-manufacturing company that primarily targets rebellious and adventurous people most likely uses ________ segmentation.

Accepted Answer

Psychographic segmentation divides the market based on personality traits, values, interests, attitudes, and lifestyles of the consumers. The cola company targets rebellious and adventurous people which aligns with psychographic segmentation.

Question 2

Double Drill Inc. segments its foreign markets by per capita income. This firm segments the international markets based on ________.

Accepted Answer

Double Drill Inc. segments the foreign markets based on per capita income, which is an economic factor. This allows the firm to target customers who have the purchasing power to buy their products.

Question 3

Teen Mania Inc., a company marketing adventure sports merchandise for teenagers, targets the world's teenagers, who have similar needs and buying behavior even though they are located in different countries. Which of the following market segmentation is evident here?

Accepted Answer

The segmentation evident here is intermarket segmentation, as the company is targeting a group (teenagers) that has similar needs and buying behavior across different countries, rather than segmenting based on any specific demographic, psychographic, or behavioral variables.

Question 4

Consumers who show their allegiance to brands, stores, or companies help marketers to segment consumers by their ________.

Accepted Answer

Consumers who show loyalty to a brand or company can be segmented based on their degree of loyalty. This information can be used by marketers to tailor their marketing efforts to this specific group of loyal consumers, as they may have different needs and preferences compared to non-loyal consumers.

Question 5

A market segment that is large or profitable enough to serve is ________.

Accepted Answer

A market segment needs to be substantial enough to justify the costs involved in targeting it. If a segment is not substantial, efforts to target it may not generate sufficient returns to justify the expenses. Measurable, accessible, profitable, and differentiable are also important criteria for market segmentation, but they do not necessarily guarantee that a segment is large or profitable enough to serve.

Question 6

Orion Inc. markets luxury watches and chronographs. It targets the wealthy global elite segment, regardless of their geographic location. Orion most likely uses ________ segmentation.

Accepted Answer

Orion Inc. targets a specific segment of wealthy individuals across different geographic locations, which is characteristic of cross-market (or intermarket) segmentation.

Question 7

In the context of behavioral segmentation, who among the following is a potential user?

Accepted Answer

Behavioral segmentation is based on how people behave in terms of buying and using products. Among the given options, only Anita, who recently had a baby, fits the criteria of potential user as she is likely to change her buying behavior to cater to the needs of her newborn baby. Peter's job change, Mary's education, Gina's profession, and Raj's trip planning don't necessarily indicate any significant changes in their buying behavior.

Question 8

Which of the following refers to a cultural factor in the context of segmenting international markets?

Accepted Answer

Values and attitudes refer to cultural factors, which can include beliefs, behaviors, and customs that are unique to a specific society or group of people. These factors can significantly impact how a product or service is received in a particular market, and companies often need to consider them when developing their marketing strategies. The other options listed are economic and political factors, which are separate from cultural factors.

Question 9

In the context of behavioral segmentation, markets segmented by ________ can be categorized into light, medium, and heavy product users.

Accepted Answer

Markets segmented by usage rate are categorized into light, medium, and heavy product users based on the frequency and amount of usage of a product. This segmentation can be helpful in identifying the most loyal customers and also in targeting and tailoring marketing efforts to each group.

Question 10

Pacific Fisheries divides its customers into different regional units, such as Asia, Australia, and the Americas. This is an example of ________.

Accepted Answer

Pacific Fisheries is segmenting its customers based on their geographic location or region, which is known as geographic segmentation.

Question 11

Papillon, a popular retailer of chic women's clothing, segments its market according to consumer lifestyles. Papillon most likely uses ________ for segmenting its market.

Accepted Answer

Papillon is segmenting its market based on consumer lifestyles, which falls under psychographic segmentation. This type of segmentation focuses on deeper aspects of consumer behavior such as values, personalities, interests, and activities.

Question 12

Which of the following is NOT a common variable used by both consumer and business marketers while segmenting markets?

Accepted Answer

The answer of Which of the following is NOT a...

Question 13

A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage of the market. The study indicated that less than 7 percent of all shoppers buy nearly 71 percent of Estelle's products in the United States. This is an example of ________.

Accepted Answer

The study conducted by Estelle Cosmetics Company is an example of segmentation by usage rate. It identifies heavy users of Estelle's products as a separate segment who comprise a small percentage of the market but account for a significant proportion of the company's sales.

Question 14

Venus Inc., a company designing and marketing branded diamond jewelry, targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________.

Accepted Answer

Intermarket segmentation involves identifying groups of consumers with similar needs and buying behaviors, even though they are located in different countries. This is exactly what Venus Inc. is doing by targeting wealthy consumers with similar needs and buying behaviors across different countries.

Question 15

________ assumes that nations close to one another will have many common traits and behaviors.

Accepted Answer

Geographic segmentation is based on the premise that people living in the same geographical area tend to have similar needs and preferences. Therefore, it can be assumed that nations close to one another will share many common traits and behaviors due to their proximity and shared physical environment.

Question 16

Using ________, marketers form segments of consumers who have similar needs and buying behaviors even though they are located in different countries.

Accepted Answer

Intermarket segmentation is the process of forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries. This type of segmentation focuses on global customers who share similar needs and preferences regardless of their geographic location.

Question 17

Marketers often segment international markets according to the type and stability of government. In such instances, they segment markets based on ________.

Accepted Answer

Marketers often segment international markets based on political factors such as the type and stability of government. This is because political factors can have a significant impact on the business environment, including laws, regulations, and policies that can affect market entry and competition.

Question 18

When the size, purchasing power, and profiles of a market segment can be calculated, the market is ________.

Accepted Answer

When a market segment's size, purchasing power, and profiles can be measured, it is considered measurable.

Question 19

Which of the following is true about multivariable segmentation systems?

Accepted Answer

Multiple segmentation systems help identify smaller, better-defined target groups. This is because using multiple segmentation bases allows for a more comprehensive understanding of different customer needs and preferences. This can result in more precise targeting of marketing efforts and a better ability to meet the specific needs of different customer segments. Additionally, using multiple segmentation bases does not necessarily mean smaller markets are ignored. In fact, it can allow for more effective targeting of niche markets. Control of inflation is not typically a goal of segmentation systems, and demographic data may be included as one of the multiple segmentation bases.

Question 20

Which of the following is true about behavioral segmentation on the basis of the loyalty variable?

Accepted Answer

Behavioral segmentation on the basis of the loyalty variable involves analyzing the behavior and preferences of customers who are loyal to a brand versus those who are not. By looking at customers who are shifting away from its brand, a company can learn about its marketing weaknesses and take actions to correct them. This can help in retaining existing customers and attracting new ones. The other options are either irrelevant or incorrect.

Quiz 7: Customer-Driven Marketing Strategy: Creating Value for Target Customers