Question 1

Clusters of marketable groups of customers with similar likes,dislikes,lifestyles and purchase behaviours can be identified by multivariable segmentation systems that merge and analyse geographic,demographic,lifestyle and behavioural data.

Accepted Answer

Multivariable segmentation systems do merge and analyse geographic, demographic, lifestyle, and behavioural data to identify clusters of marketable groups of customers with similar characteristics.

Question 2

Research about and planning for loyalty status as a segmentation approach is generally not useful or practical for most firms.

Accepted Answer

Loyalty status can be a useful segmentation approach for firms that have a loyal customer base, particularly those in industries such as airlines, hotels, and credit cards. By targeting their most loyal customers with exclusive benefits, these firms can deepen customer loyalty and increase customer lifetime value. However, for firms with less predictable customer behavior or those in industries where loyalty is less relevant, loyalty status segmentation may not be as practical or useful.

Question 3

International Luxury Gifts divides its markets into units of nations,regions and cities.International Luxury Gifts uses geographic segmentation.

Accepted Answer

Geographic segmentation refers to dividing the market based on geographical boundaries such as nations, regions, or cities. Therefore, International Luxury Gifts using geographic segmentation by dividing its markets into units of nations, regions, and cities is true.

Question 4

The Restaurant and Catering Association of Australia (RCAA)recently carried out a segmentation analysis of the fine dining segment.This analysis revealed five distinct segments based on a number of key dining-out motivations including: (1)Convenience\ease Networking for business.A summary profile of the largest segment reads as follows: 'This segment,known as category advocates,accounts for 36 per cent of all those who dine at fine restaurants.They have a pragmatic attitude to dining out,appreciate dining out,exhibit frequent dining out behaviour,seek value,do not need a reason to dine out and instead are often involved in informal dining occasions'.The RCAA's segmentation analysis is most likely to be based on which approach?

Accepted Answer

The segmentation analysis carried out by the RCAA is based on benefits sought, as it identifies distinct segments based on key dining-out motivations such as convenience, networking, and seeking value.

Question 5

Because there is such variation among the economies of countries around the world,it is not practical to segment international markets on the basis of economic factors.

Accepted Answer

The answer of Because there is such variation among the...

Question 6

Demographic segmentation uses different marketing approaches for different time periods of people's lives and different family situations.

Accepted Answer

The answer of Demographic segmentation uses different marketing approaches for...

Question 7

Business and consumer marketers use the same set of variables to segment their markets.

Accepted Answer

While there is some overlap in the variables used to segment business and consumer markets, there are also important differences. For example, in B2B markets firmographics such as company size and industry type are important segmentation variables, while in B2C markets demographic factors such as age and income may hold greater importance. Additionally, psychographic factors such as lifestyle and values may be more relevant in B2C segmentation, while buying processes and decision-making units are more important in B2B segmentation.

Question 8

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

Accepted Answer

Gender segmentation is a common marketing strategy used in industries such as clothing, cosmetics, toiletries, and magazines to target specific genders with relevant products and content.

Question 9

There are many exceptions to the geographic segmentation assumption that consumers in nations close to one another will have many common behaviours and traits.

Accepted Answer

While geographic proximity can often result in some similarities between consumer behaviors and traits, there are many exceptions to this generalization. Factors such as cultural, economic, and political differences can significantly impact consumer behavior, even between neighboring countries. Therefore, it is important for marketers to conduct thorough research and avoid making assumptions based solely on geographic location.

Question 10

For market segments to be useful they must be measurable,accessible,substantial,differentiable and actionable.

Accepted Answer

These are the five criteria for effective market segmentation, as identified by marketing experts.

Question 11

The Blue Mountains Retreat Centre is open to people of all religious faiths and is a place people can go to unwind from the stressful rigors of daily life.Which of the following is an example of a psychographic variable the owner of the retreat could use in its marketing strategy?

Accepted Answer

Psychographic variables are characteristics that are used to analyze consumer lifestyles, attitudes, beliefs, and values. Out of the options given, lifestyle is the best example of a psychographic variable that the owner of the retreat could use in its marketing strategy. The retreat center is targeted toward people looking to unwind, which is a characteristic of a certain lifestyle or mindset. The owner could also use other psychographic variables such as values or interests to better target the desired audience.

Question 12

Shopping For The Rich and Famous is a buying service that helps wealthy clients find the best buys in exclusive clothing,high-end cars,travel and financial services.This firm would use income segmentation.

Accepted Answer

Income segmentation involves dividing a market based on income levels of the customers. Shopping For the Rich and Famous targets wealthy clients, thus using income segmentation.

Question 13

A segmentation study of people who would be interested in subscribing to a cooking magazine discovered three distinct groups of potential subscribers: (1)those who wanted to cook the same foods their mothers cooked for them; (2)those who wanted to learn about the latest cooking trends and fads;and (3)those who were interested in learning about a variety of different international cuisines and exotic ingredients.This magazine discovered its market can be segmented using ________ variables.

Accepted Answer

The segmentation study is based on the interests and preferences of potential subscribers, which falls under lifestyle variables. Demographic variables such as age, gender, and income level may not necessarily determine one's interest in cooking, while social class and geographic variables may not be relevant in this context. Generation could be a potential variable, but the study did not explicitly mention any age group or generational cohort. Therefore, the best choice is lifestyle variables.

Question 14

Which of the following statements is expressed solely as a psychographic profile of a consumer?

Accepted Answer

The statement about Rab only provides information about his leisure preferences and social tendencies, which are psychographic factors. The other options provide demographic or socio-economic information in addition to psychographic factors.

Question 15

User status segmentation involves finding the major advantages or features people look for in the product class,the kinds of people who look for each advantage or feature,and the major brands that deliver each advantage or feature.

Accepted Answer

The answer of User status segmentation involves finding the major...

Question 16

Your assignment at work is to divide buyers into different groups based on social class,lifestyle and personality characteristics.After a planning session with the marketing and sales staff,you issue a memo to upper management recommending psychographic segmentation.You are right on target.

Accepted Answer

Psychographic segmentation involves dividing consumers into groups based on their personality traits, interests, and lifestyle choices. This approach can be effective in understanding consumer behavior and tailoring marketing strategies to different segments. Therefore, recommending psychographic segmentation based on social class, lifestyle, and personality characteristics is a valid approach for dividing buyers into different groups.

Question 17

LaGrange Florists segments markets into groups of nonusers,ex-users,potential users,first-time users and regular users of its flowers and services.This firm uses usage rate as the segmentation approach.

Accepted Answer

The answer of LaGrange Florists segments markets into groups of...

Question 18

For decades,Ocean Spray cranberry jelly has been on thousands of Christmas tables globally.Ocean Spray is working hard to implement other strategies to encourage consumers to use the product all year round.Ocean Spray is seeking to move beyond the limited ________ segmentation strategy it used in the past.

Accepted Answer

The passage mentions that Ocean Spray cranberry jelly has been primarily associated with Christmas tables, implying that its segmentation strategy has been based on the occasion. However, the company now wants to encourage consumers to use the product all year round, indicating a shift away from this limited segmentation strategy. Therefore, the best choice is E (occasion).

Question 19

Scouts Australia is currently scrutinising its database of current and lapsed members in an effort to detect patterns.It is hoping to develop insights that will enable it to develop programs encouraging existing members to stay with the scouting movement for longer than average.It is also hoping to implement programs designed to encourage lapsed members to rejoin the movement.Scouts Australia is currently engaged in which type of segmentation analysis?

Accepted Answer

The answer of Scouts Australia is currently scrutinising its database...

Question 20

For simplicity's sake,most marketers generally limit their segmentation analysis to one or a few variables.

Accepted Answer

The answer of For simplicity's sake,most marketers generally limit their...

Quiz 6: Business Markets and Business Buyer Behaviour