Question 1

In the context of behavioral segmentation, markets segmented by ________ can be categorized into light, medium, and heavy product users.
A) benefits sought
B) loyalty status
C) usage rate
D) user status
E) occasion

Accepted Answer

Markets segmented by usage rate can be categorized into light, medium, and heavy product users, based on how frequently and/or how much they use the product. This information can help marketers tailor their marketing strategies to each group, for example, by offering promotions to the light users to encourage them to use the product more often, or by offering loyalty rewards to the heavy users to keep them coming back.

Question 2

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

Accepted Answer

Psychographic segmentation is based on lifestyle, personality, and values of the consumers. It helps in understanding the behavior, interests, and attitudes of the target consumers.

Question 3

Gilron Holidays runs a premium membership club that caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts at select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach.
A) gender
B) benefit
C) occasion
D) income
E) geographic

Accepted Answer

Gilron Holidays segments its market based on the customers' annual salary, which is an income-based segmentation approach.

Question 4

In the context of behavioral segmentation, who among the following is a potential user?
A) Anita, who recently had a baby
B) Peter, who recently changed his job
C) Mary, who enrolled as a graduate student in a university last year
D) Gina, who opened a dental clinic in Orange County
E) Raj, who is planning a trip to Hawaii with friends

Accepted Answer

Anita, who recently had a baby, can be a potential user as her behavior may change with a new baby. She may have different needs and preferences, which can be used for behavioral segmentation.

Answer: B, C, D, and E are not potential users as the events mentioned do not indicate any significant behavior change or preferences that can be used for behavioral segmentation.

Question 5

________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.
A) Behavioral
B) Psychographic
C) Age and life cycle
D) Gender
E) Geographic

Accepted Answer

Behavioral segmentation divides buyers based on their interaction, behavior, or response to a product, including their knowledge, attitudes, and uses of the product.

Question 6

________ requires finding the major advantages people look for in a product class, the kinds of people who look for each positive aspect of a product, and the major brands that deliver it.
A) Gender segmentation
B) Psychographic segmentation
C) Benefit segmentation
D) Geographic segmentation
E) Age and life-cycle segmentation

Accepted Answer

Benefit segmentation involves identifying the major benefits that customers seek in a product category and targeting those benefits to specific customer groups. This involves identifying the specific advantages that certain customers are looking for and determining which brands deliver those benefits.

Question 7

Which of the following refers to a behavioral segmentation variable that involves segmenting markets into nonusers, ex-users, potential users, first-time users, and regular users of a product?
A) user status
B) usage rates
C) gender status
D) income status
E) loyalty status

Accepted Answer

User status involves segmenting markets based on the different statuses of users, including nonusers, ex-users, potential users, first-time users, and regular users of a product. Usage rates refer to the frequency and amount of usage by customers. Gender status and income status are demographic segmentation variables, whereas loyalty status is another behavioral segmentation variable but relates specifically to the level of loyalty customers have towards a brand or product.

Question 8

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 ________.
A) benefit segmentation
B) segmentation by loyalty status
C) segmentation by usage rate
D) psychographic segmentation
E) occasion segmentation

Accepted Answer

The study is indicating that Estelle Cosmetics Company has segmented its market based on usage rate, identifying heavy users who make up a small percentage of the market but contribute significantly to the company's sales.

Question 9

Calypso Motors recently rolled out its Proteus hatchback. Proteus combines the attractiveness of a luxury car with the excellent agility of a sports car. Calypso Motors is confident that Proteus will appeal to both sports car enthusiasts as well as the luxury segment. Which of the following types of market segmentation is evident here?
A) gender segmentation
B) income segmentation
C) benefit segmentation
D) geographic segmentation
E) age and life-cycle segmentation

Accepted Answer

Calypso Motors is segmenting the market based on the benefits that the Proteus can offer to its potential customers, which combine the attractiveness of a luxury car with the excellent agility of a sports car. This is an example of benefit segmentation. Gender segmentation divides the market based on gender. Income segmentation is based on income levels. Geographic segmentation divides the market based on geographical boundaries. Age and life-cycle segmentation is based on the age and life-cycle stages of the potential customers. None of these types of market segmentation are evident in this scenario.

Question 10

Which of the following is NOT a common variable used by both consumer and business marketers while segmenting markets?
A) operating characteristics
B) loyalty status
C) usage rate
D) geographic location
E) benefits sought

Accepted Answer

Operating characteristics are typically used by business marketers to segment markets based on how businesses operate and their specific needs, which is not commonly used by consumer marketers. Consumer marketers focus more on individual consumer characteristics such as demographics, lifestyle, and behavior, rather than how a consumer operates.

Question 11

________ segmentation has long been used in clothing, cosmetics, toiletries, and magazines.
A) Behavioral
B) Gender
C) Benefit
D) Occasion
E) Geographic

Accepted Answer

Gender segmentation is commonly used in industries like clothing, cosmetics, toiletries, and magazines to target products and marketing efforts based on gender differences.

Question 12

Which of the following is true about behavioral segmentation on the basis of the loyalty variable?
A) Consumers tend to pay more for products that are targeted at their respective age group or generation.
B) 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.
C) Highly loyal customers of a brand are less likely to engage in word-of-mouth publicity than those who are not.
D) Completely loyal customers of a brand are typically loyal to two or three brands of a given product.
E) Only consumers who seek premium or luxury services are subjected to behavioral segmentation based on the loyalty variable.

Accepted Answer

Behavioral segmentation on the basis of the loyalty variable helps a company identify customers who are shifting away from its brand and take corrective measures. It enables a company to understand the reasons behind the shift and to improve its marketing strategies to prevent it in the future. The other options are not accurate statements about behavioral segmentation on the basis of the loyalty variable.

Question 13

________ segmentation refers to dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.
A) Gender
B) Psychographic
C) Occasion
D) Geographic
E) Income

Accepted Answer

Occasion segmentation involves dividing the market into segments based on specific occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item. This type of segmentation can be particularly useful for businesses that sell products or services related to specific events or holidays, such as Valentine's Day or Halloween.

Question 14

Consumers who show their allegiance to brands, stores, or companies help marketers to segment consumers by their ________.
A) user status
B) degree of loyalty
C) income
D) geographic location
E) benefit-seeking attitudes

Accepted Answer

Consumers who show loyalty to a brand or store can be segmented by their degree of loyalty. This can help marketers to understand their most loyal customers and create targeted marketing campaigns to retain their loyalty. User status, income, geographic location, and benefit-seeking attitudes are other segmentation variables that can be used, but they are not specifically related to consumers' loyalty to a brand or store.

Question 15

Which of the following is NOT a benefit of using multivariable segmentation systems?
A) help companies identify key customer segments
B) help companies reach key customer segments more efficiently
C) help companies more accurately price their products to appeal to key customer segments
D) help companies better understand key customer segments
E) help companies tailor market offering to the needs of the key customer segments

Accepted Answer

Multivariable segmentation systems do not necessarily help companies with pricing strategies. Instead, pricing strategies are usually developed through market research and analysis of industry standards. The other benefits listed (identifying, reaching, understanding, and tailoring to key customer segments) are all commonly associated with the use of multivariable segmentation systems.

Question 16

Business marketers use geographic, demographic, benefit, user status, usage rate, and loyalty status to segment their markets. They also use ________, customer operating characteristics, purchasing approaches, and situational factors.
A) weather patterns
B) psychographics
C) ethical traits
D) budgets and financial status
E) personal characteristics

Accepted Answer

The answer of Business marketers use geographic, demographic, benefit, user...

Question 17

Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals.
A) demographic segmentation
B) geographic segmentation
C) benefit segmentation
D) psychographic segmentation
E) occasion segmentation

Accepted Answer

Psychographic segmentation involves grouping consumers based on their attitudes, values, interests, and lifestyles. Marketers who use psychographic segmentation can develop marketing strategies that appeal to consumers' lifestyles, making it the most accurate choice.

Question 18

Which of the following is true about multivariable segmentation systems?
A) Marketers using multiple segmentation bases tend to ignore smaller markets.
B) Marketers often use multiple segmentation bases to control inflation.
C) Multiple segmentation rarely involves the use of demographic data.
D) Multiple segmentation is ineffective in large markets.
E) Multiple segmentation bases help identify smaller, better-defined target groups.

Accepted Answer

Multiple segmentation bases help identify smaller, better-defined target groups. This option is the only one that correctly describes the benefits of using a multivariable segmentation system. Option A is incorrect as it presents a generalization that is not necessarily true. Option B is unrelated to the concept of multivariable segmentation. Option C is incorrect as demographic data can be one of the bases for segmentation. Option D is also inaccurate as the effectiveness of segmentation depends on various factors and not necessarily on market size.

Question 19

Tropicana promotes drinking orange juice at any time of day as a cool, refreshing drink. The market segmentation approach Tropicana is using is ________.
A) occasion segmentation
B) benefit segmentation
C) age and life-cycle segmentation
D) gender segmentation
E) behavioral segmentation

Accepted Answer

Tropicana is targeting people to drink orange juice at any time of the day, so they are using occasion segmentation.

Question 20

Malcolm Sanders, a graduate student from Boston, makes customized snowboards for local snowboarding enthusiasts. The demand for snowboards peaks during the winter months, a busy time for Malcolm. He advertises more aggressively and sells most of his snowboards around this time. Which market segmentation approach does Malcolm most likely use?
A) gender segmentation
B) psychographic segmentation
C) occasion segmentation
D) geographic segmentation
E) age and life-cycle segmentation

Accepted Answer

Malcolm is using occasion segmentation, as he is targeting the specific time period of winter when demand for snowboards is at its peak. He adjusts his marketing and sales strategies to focus on this specific occasion.

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

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

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

Gilron Holidays runs a premium membership club that caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts at select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach.

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

________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.

________ requires finding the major advantages people look for in a product class, the kinds of people who look for each positive aspect of a product, and the major brands that deliver it.

Which of the following refers to a behavioral segmentation variable that involves segmenting markets into nonusers, ex-users, potential users, first-time users, and regular users of a product?

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

________ segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

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

________ segmentation refers to dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

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

Which of the following is NOT a benefit of using multivariable segmentation systems?

Business marketers use geographic, demographic, benefit, user status, usage rate, and loyalty status to segment their markets. They also use ________, customer operating characteristics, purchasing approaches, and situational factors.

Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals.

Which of the following is true about multivariable segmentation systems?

Tropicana promotes drinking orange juice at any time of day as a cool, refreshing drink. The market segmentation approach Tropicana is using is ________.