Question 1

Which of the following variables are the most popular for marketers to use in segmenting customer groups?
A) ethical
B) psychographic
C) demographic
D) behavioral
E) geographic

Accepted Answer

C

Question 2

________ can be a poor predictor of a person's health, work or family status, needs, or buying power.
A) Occupation
B) Education
C) Ethnicity
D) Religion
E) Age

Accepted Answer

Age can be a poor predictor of a person's health, work or family status, needs, or buying power because individuals of the same age can have vastly different lifestyles, health conditions, and financial situations.

Question 3

Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?
A) geographic segmentation
B) benefit segmentation
C) occasion segmentation
D) demographic segmentation
E) psychographic segmentation

Accepted Answer

Demographic segmentation is evident here as Delta Motorworks is segmenting its market based on age, gender, and income of its customers.

Question 4

________ segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
A) Geographic
B) Benefit
C) Occasion
D) Psychographic
E) Demographic

Accepted Answer

Demographic segmentation is the process of dividing the market into smaller groups based on demographic variables, such as age, gender, income, occupation, education, and ethnicity. This type of segmentation is commonly used because it is easy to measure and analyze, and it has been shown to be a good predictor of consumer buying behavior.

Question 5

________ involves actually distinguishing the firm's market offering to create superior customer value.
A) Mass customization
B) Differentiation
C) Market segmentation
D) Diversifying
E) Targeting

Accepted Answer

Differentiation involves distinguishing the firm's market offering to create superior customer value. Mass customization involves customizing the firm's market offering to meet specific customer needs. Market segmentation involves dividing the market into distinct groups with similar needs or characteristics. Diversifying involves expanding the firm's business into new markets or products. Targeting involves selecting specific segments to focus the marketing efforts on.

Question 6

Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods. This is an example of ________.
A) geographic segmentation
B) product diversification
C) branding
D) psychographic segmentation
E) demographic segmentation

Accepted Answer

Geographic segmentation involves tailoring marketing efforts to specific geographic regions. This includes localizing products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods. This approach recognizes that different areas have distinct preferences, behaviors, and needs that may require customized marketing strategies.

Question 7

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes many college students, as an untapped group of potential customers for their new line of products, they were engaging in ________.
A) occasion segmenting
B) local marketing
C) market diversification
D) market targeting
E) product positioning

Accepted Answer

Fair & Leigh Inc. is engaging in market targeting, which involves selecting a specific group (in this case, Millennials) as the target market for their new product line.

Question 8

Companies know they cannot appeal to all buyers in the marketplace, or at least not in the same way. Reasons for this include all of the following EXCEPT ________.
A) buyers are too numerous
B) companies vary widely in their abilities to serve different market segments
C) buyers are varied in their needs and buying practices
D) companies need more information to offer the right products to the right customers
E) buyers are widely scattered

Accepted Answer

The statement "buyers are too numerous," "buyers are varied in their needs and buying practices," and "buyers are widely scattered" are all valid reasons why companies cannot appeal to all buyers in the marketplace. The statement "companies vary widely in their abilities to serve different market segments" is also a valid reason. However, the statement "companies need more information to offer the right products to the right customers" is not a valid reason since companies can gather more information to better understand their target audience and offer products accordingly.

Question 9

________ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.
A) Benefit
B) Occasion
C) Geographic
D) Demographic
E) Psychographic

Accepted Answer

Psychographic segmentation divides buyers into different segments based on their social class, lifestyle, or personality characteristics. It helps to understand the attitudes, lifestyles, and values of prospective customers, which in turn can help in creating marketing messages and designing products that appeal to them.

Question 10

________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods.
A) Benefit segmentation
B) Geographic segmentation
C) Demographic segmentation
D) Psychographic segmentation
E) Occasion segmentation

Accepted Answer

Geographic segmentation calls for dividing the market into regions, states, counties, cities, or even neighborhoods based on geographic location. This helps companies to better understand their local customers and offer more targeted marketing and advertising campaigns.

Question 11

What is differentiation?

Accepted Answer

The answer of What is differentiation?...

Question 12

With technology advances making it simple to contact many customers at once, companies have moved toward mass marketing over target marketing.

Accepted Answer

Despite technological advances, companies increasingly focus on target marketing to reach specific segments of the market with tailored messages, rather than mass marketing which treats the entire market the same.

Question 13

Which of the following is NOT one of the major variables used in segmenting consumer markets?
A) demographic
B) behavioral
C) ethical
D) geographic
E) psychographic

Accepted Answer

The major variables used in segmenting consumer markets are demographic, behavioral, geographic, and psychographic. Ethical is not one of the major variables used in this process.

Question 14

________ consists of evaluating each market segment's attractiveness and selecting one or more segments to enter.
A) Positioning
B) Mass customization
C) Market targeting
D) Market segmentation
E) Differentiation

Accepted Answer

Market targeting is the process of evaluating each market segment's attractiveness and selecting one or more segments to enter. Positioning refers to how the company wants its brand to be perceived in the minds of consumers. Mass customization is a strategy that involves creating customized products and services for individual customers. Market segmentation is the process of dividing the market into smaller groups of consumers with similar needs or characteristics. Differentiation refers to creating a unique product or service that stands out from competitors.

Question 15

Explain the four major steps in designing a customer-driven marketing strategy.

Accepted Answer

The answer of Explain the four major steps in designing...

Question 16

Mass marketing involves identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.

Accepted Answer

Mass marketing involves targeting the entire market as a whole with a standardized marketing strategy and product offering, rather than identifying and targeting specific market segments.

Question 17

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
A) Mass customization
B) Targeting
C) Segmentation
D) Differentiation
E) Positioning

Accepted Answer

Positioning consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. This involves creating a unique image or identity for the product in the minds of consumers, based on factors such as its features, benefits, price, and quality. By adopting a strong and distinctive positioning strategy, marketers can help to differentiate their product from those of their competitors and create a more compelling and attractive offering for consumers.

Question 18

The customer-driven marketing strategy involves four steps: market segmentation, market targeting, positioning, and differentiation.

Accepted Answer

This is true. The customer-driven marketing strategy involves identifying distinct groups of customers (market segmentation), selecting one or more of those groups to focus on (market targeting), creating a unique image and appeal for the chosen target market (positioning), and differentiating the company and its products from competitors in the minds of consumers.

Question 19

A company selling child-care products ran a television ad depicting women as being primarily responsible for childcare. Many women viewers considered this regressive, alleging that the ad failed to recognize the much more diversified role of women in today's world. This is an example of ________.
A) cause marketing
B) stereotyping
C) niche marketing
D) scapegoating
E) positioning

Accepted Answer

The given scenario shows an example of stereotyping as the ad depicts women as being primarily responsible for childcare without acknowledging the diversified role of women in today's world.

Question 20

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
A) Mass customization
B) Market targeting
C) Market segmentation
D) Differentiation
E) Positioning

Accepted Answer

Market segmentation involves dividing a larger market into smaller segments based on common characteristics, needs, or behaviors. This allows a company to tailor their marketing strategies and offerings to the specific needs and preferences of each segment, resulting in more effective communication and higher customer satisfaction.

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

Which of the following variables are the most popular for marketers to use in segmenting customer groups?

________ can be a poor predictor of a person's health, work or family status, needs, or buying power.

Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?

________ segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

________ involves actually distinguishing the firm's market offering to create superior customer value.

Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods. This is an example of ________.

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes many college students, as an untapped group of potential customers for their new line of products, they were engaging in ________.

Companies know they cannot appeal to all buyers in the marketplace, or at least not in the same way. Reasons for this include all of the following EXCEPT ________.

________ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.

________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods.

What is differentiation?

With technology advances making it simple to contact many customers at once, companies have moved toward mass marketing over target marketing.

Which of the following is NOT one of the major variables used in segmenting consumer markets?

________ consists of evaluating each market segment's attractiveness and selecting one or more segments to enter.

Explain the four major steps in designing a customer-driven marketing strategy.

Mass marketing involves identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

The customer-driven marketing strategy involves four steps: market segmentation, market targeting, positioning, and differentiation.

A company selling child-care products ran a television ad depicting women as being primarily responsible for childcare. Many women viewers considered this regressive, alleging that the ad failed to recognize the much more diversified role of women in today's world. This is an example of ________.

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.