Question 1

Even though several options are available at any one time,there ________ to segment a market.

Accepted Answer

There is no single way to segment a market as different industries, products, and target audiences may require different approaches. Therefore, it is important to consider multiple options when segmenting a market and choose the approach that best fits the specific situation.

Question 2

Shampoo marketers rate buyers as light,medium,or heavy product users.This is ________ segmentation.

Accepted Answer

Shampoo marketers are using usage rate segmentation by categorizing buyers into light, medium and heavy product users based on how often they use the product.

Question 3

When Positive Image,Inc.caters to clothing,cosmetics,and toiletries markets,it most likely uses which type of segmentation?

Accepted Answer

Positive Image, Inc. is likely using gender segmentation as it caters to markets like clothing, cosmetics, and toiletries, which often target specific genders.

Question 4

Marketers of automobiles,financial services,and travel are most likely to use which of the following types of segmentation?

Accepted Answer

Marketers of automobiles, financial services, and travel are most likely to use income as a segmentation variable because these products and services are typically more expensive and are therefore more likely to be affordable for consumers with higher incomes. By using income as a segmentation variable, these marketers can tailor their messages and offers to appeal to consumers who are most likely to be able to afford their products or services.

Question 5

Your current assignment at Asia Foods is to find the major benefits people look for in product classes,the kinds of people who look for each benefit,and the major brands that deliver each benefit.What is this segmentation method called?

Accepted Answer

The segmentation method described in the scenario is called benefit segmentation, which involves dividing a market based on the benefits that customers seek from a product or service.

Question 6

What are the four steps,in order,to designing a customer-driven marketing strategy?

Accepted Answer

The four steps to designing a customer-driven marketing strategy are market segmentation, targeting, differentiation, and positioning. Market segmentation involves dividing the market into smaller groups with similar needs or characteristics. Targeting involves selecting which segments to serve and deciding on the appropriate marketing mix. Differentiation involves creating a unique value proposition for the selected segments. Positioning involves creating a distinct image or perception in the minds of the target customers. Option C includes all four steps in the correct order.

Question 7

Your firm has decided to localize its products and services to meet local market demands.A good approach to use would be ________ segmentation.

Accepted Answer

Geographic segmentation involves dividing a market into different geographical units, such as countries or regions. This would be a good approach to use when localizing products and services to meet local market demands. By understanding the unique characteristics and needs of each geographic unit, the firm can tailor its offerings to better meet the demands of each market.

Question 8

Markets can be segmented into groups of nonusers,ex-users,potential users,first-time users,and regular users of a product.This method of segmentation is called ________.

Accepted Answer

This method of segmentation is based on the status of the potential customers in relation to the product. Therefore, user status is the correct choice. Usage rates refer to the extent to which customers use the product, benefit segmentation is based on the benefits customers seek from the product, behavior segmentation is based on the behavior of customers towards the product, and loyalty status is based on the degree of loyalty customers have towards the brand or product. These are different methods of market segmentation.

Question 9

Which of the following is the most popular method for segmenting markets?

Accepted Answer

Demographic segmentation is the most popular method for segmenting markets. This is because it is relatively easy and cost-effective to collect and analyze demographic data, such as age, income, education level, and geographic location. Additionally, demographic variables are often strongly correlated with consumer behavior, making them useful predictors of consumer needs, wants, and preferences. While other methods, such as psychographic and behavioral segmentation, can provide valuable insights, they tend to be more complex and difficult to apply on a large scale.

Question 10

Pet Paradise Centre divides the pet market according to the owners' race,occupation,income,and family life cycle.What type of segmentation does Pet Paradise Centre use?

Accepted Answer

Pet Paradise Centre uses demographic segmentation, which involves dividing the market based on demographic variables such as age, gender, income, family size, education, and occupation. In this case, Pet Paradise Centre divides the market based on the owners' race, occupation, income, and family life cycle, which are all demographic variables.

Question 11

Demographic variables are frequently used in market segmentation because they ________.

Accepted Answer

Demographic variables such as age, gender, income, and education are easy to measure and obtain, making them a popular and cost-effective method for market segmentation. They are also objective, unlike psychographic variables, which can be influenced by subjective interpretations.

Question 12

Marketers must be most careful to guard against which of the following when using age and life-cycle segmentation?

Accepted Answer

When using age and life-cycle segmentation, marketers must be most careful to guard against stereotyping. This means assuming that all consumers within a certain age group or life stage have similar needs, interests, and characteristics, without taking into account individual differences. Stereotyping can be offensive and ineffective in marketing, as it oversimplifies and overlooks the diversity within age and life-cycle segments.

Question 13

The division of buyers into groups based on their knowledge,attitudes,uses,or responses to a product is ________ segmentation.

Accepted Answer

Behavioral segmentation divides buyers based on their behavior towards the product, such as their usage rate, loyalty, benefit sought, and occasion. This approach allows the marketer to tailor their marketing efforts towards specific groups, making it more effective and efficient. Psychographic segmentation is based on buyers' attitudes, values, and lifestyles. Age and life cycle segmentation is based on the buyer's stage in life. Demographic segmentation is based on the buyer's measurable characteristics such as age, income, gender, and education level. Geographic segmentation divides buyers based on their location or region. While all of these approaches can be useful in market segmentation, behavioral segmentation is the best choice for dividing buyers based on their behavior towards the product.

Question 14

Which type of segmentation centers on the use of the word when,such as when consumers get the idea to buy,when they actually make their purchase,or when they use the purchased item?

Accepted Answer

Occasion segmentation centers on the timing or occasion of the consumer's purchase behavior. It focuses on when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item. This type of segmentation allows marketers to tailor their marketing efforts and promotions to specific occasions, such as holidays, events, or special occasions.

Question 15

Many firms make an effort to identify smaller,better-defined target groups by using ________.

Accepted Answer

Multiple segmentation bases allow firms to identify smaller, better-defined target groups by using multiple variables such as demographics, psychographics, and behavior. This results in greater precision in targeting specific groups of consumers. Differentiation refers to creating a unique product or service offering to appeal to a specific target market. Concentrated marketing is focusing on a single, well-defined target market. Positioning refers to how a product is perceived in the minds of consumers relative to competing products. Mass marketing is an approach where a firm targets the entire market with a single marketing mix.

Question 16

Consumers can show their loyalty to brands,stores,or companies.Marketers can use this information to segment consumers by ________.

Accepted Answer

Loyalty status is the best choice as it specifically refers to consumers showing their loyalty towards a brand, store or company. This information can be used to segment consumers and create targeted marketing strategies for each loyalty group. While the other options may also be used for segmentation, loyalty status is the most relevant in this context.

Question 17

Lifestyle characteristics and personality characteristics are two types of variables used in ________ segmentation.

Accepted Answer

Psychographic segmentation uses lifestyle characteristics and personality characteristics as variables to group consumers based on their values, attitudes, interests, and behaviors. This type of segmentation goes beyond demographics or behavior alone and focuses on the psychological and emotional aspects of consumer behavior.

Question 18

Consumer and business marketers use many of the same variables to segment markets.Business marketers use all of the following EXCEPT ________.

Accepted Answer

While personal characteristics and situational factors may be used by business marketers to segment markets, brand personalities are typically not a variable used in B2B marketing.

Question 19

When a company evaluates each market segment's attractiveness and selects one or more
segments to enter,it is engaging in ________.

Accepted Answer

Market targeting involves evaluating market segments to determine which ones are the most attractive, and selecting one or more of these segments to focus marketing efforts on. Adapted marketing, differentiation, and segmentation are all steps that may be taken after a target market has been selected. Mass marketing, on the other hand, involves targeting an entire market with a single marketing strategy, and does not involve selecting specific market segments to focus on.

Question 20

By studying its less loyal buyers,a company can detect which brands are most ________ its own.

Accepted Answer

By studying less loyal buyers, a company can identify which brands are competitive with its own, as these are the brands that attract its customers away.

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