Question 1

Demographic variables are the most popular bases for segmenting customer groups because they ________.

Accepted Answer

Demographic variables such as age, gender, income, and education are relatively easy to measure using data sources such as census reports and surveys, making them a popular basis for segmenting customer groups. They also allow for easy comparison across different markets and regions, and can provide useful insights into consumer behavior and lifestyle preferences.

Question 2

Firms that manufacture seasonal products target their consumers primarily through ________ segmentation.

Accepted Answer

Seasonal products are specifically marketed to consumers based on the occasion or event for which they are intended (such as holidays, sporting events, or back-to-school season), making occasion segmentation the most effective strategy for reaching these specific consumer groups.

Question 3

________ factors are the most popular bases for segmenting customer groups.

Accepted Answer

Demographic factors are the most popular bases for segmenting customer groups because they are easy to measure and often correlate with consumer needs and preferences.

Question 4

Zindle,an American smartphone-manufacturing firm,targets children below the age of ten by providing free games and applications.The firm's marketing approach is reflective of a(n)________ segmentation.

Accepted Answer

The marketing approach of targeting children below the age of ten is a clear example of age and life-cycle segmentation, as the firm is specifically targeting a certain age group based on their life-cycle stage.

Question 5

At one time,Miller Beer was known as the "champagne of bottled beer." It was targeted at an elite class of customers.Later,to increase sales,Miller was repositioned to attract members of the working,middle-class.What is this segmentation method called?

Accepted Answer

Psychographic segmentation involves dividing a market into different segments based on social class, lifestyle, or personality characteristics. Miller Beer was repositioned from targeting an elite class to the working, middle-class, which reflects a change in the social class aspect of psychographic segmentation.

Question 6

Pediacertain Pet Supplies,a pet-food company,divides the pet market according to the pet owners' gender,occupation,income,and family life cycle.In this case,which of the following variables has the company used for market segmentation?

Accepted Answer

The company has used demographic variables, such as gender, occupation, income, and family life cycle, for market segmentation. Demographic variables refer to characteristics such as age, income, education level, occupation, etc. of a particular group or target market.

Question 7

________ is the process of evaluating the attractiveness of different market segments and selecting one or more segments to enter.

Accepted Answer

Market targeting is the process of evaluating different market segments and selecting one or more segments to enter. Differentiation is the process of making a product or service more attractive and unique compared to competitors. Mass marketing involves targeting the entire market with a single marketing mix, while market segmentation is the process of dividing the market into smaller groups with similar needs and characteristics. Positioning is the process of creating an image or identity for a product or brand in the minds of the target market.

Question 8

Dividing buyers into groups based on their knowledge,attitudes,uses,or responses to a product is called ________ segmentation.

Accepted Answer

Behavioral segmentation divides buyers based on their behavior, which could include their knowledge, attitudes, uses, or responses to a product. The other options listed (psychographic, age and life-cycle, user status, and geographic) do not necessarily focus on behavior as the main criteria for grouping buyers.

Question 9

Which type of market segmentation is generally used by marketers who sell products for the affluent segments of a population?

Accepted Answer

Income segmentation is generally used by marketers who sell products for the affluent segments of a population. This is because affluent customers have higher purchasing power and are willing to pay a premium for high-quality products and services. Other forms of segmentation, such as usage rate or occasion, would not be as effective in targeting this demographic.

Question 10

Pacific Fisheries groups its customers by regions in the U.S.,such as Midwest,Northeast,and Southwest.For each region,Pacific Fisheries tailors a different set of advertisements and promotions.Based on which of the following segmentation variables does the firm divide its market?

Accepted Answer

Pacific Fisheries divides its market based on geographic location, which is a segmentation variable.

Question 11

________ 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.

Accepted Answer

This is the definition of positioning, which is the process of creating an image or identity in the minds of the consumers. A and C are related concepts, but they do not capture the full meaning of the definition. Market segmentation (D) is the process of dividing a market into smaller groups with similar needs and characteristics, while mass marketing (E) is the opposite, where a product is offered to a wide range of consumers without any differentiation or targeting.

Question 12

Senz,an automobile manufacturer,produces low-end vehicles that are targeted toward lower-income consumer groups.Senz most likely segments the consumer market based on ________ variables.

Accepted Answer

Senz is targeting a specific income group, which is a demographic variable. Demographic segmentation divides the market based on age, income, education, gender, and other similar variables.

Question 13

Zista,a boutique that caters to the clothing needs of women,manufactures two different lines of fashion wear based on the purchasing power of its customers.One product line caters to the needs of affluent,middle-aged women,and the other line targets younger professionals and homemakers.Zista most likely segments the consumer market based on ________ variables.

Accepted Answer

Zista is segmenting the market based on demographic variables such as age and income, as they are targeting affluent middle-aged women for one line of clothing and younger professionals and homemakers for the other.

Question 14

Shampoo marketers segment buyers as light,medium,or heavy product users.This is an example of ________ segmentation.

Accepted Answer

Shampoo marketers are segmenting buyers based on their usage rate, which is the frequency of usage, making it usage rate segmentation.

Question 15

Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy?

Accepted Answer

This is the correct order of steps in designing a customer-driven marketing strategy. First, companies need to identify different segments in the market and choose the most attractive ones to target. Then, they need to differentiate their product or service from competitors in those chosen segments. Finally, they need to position their product or service in the mind of the consumer to create a unique, compelling message.

Question 16

Rasco Corp.segments its foreign markets based on the income levels of a country's population.In this case,the firm segments its market based on ________.

Accepted Answer

The income levels of a country's population are a part of economic factors that can be used to segment a market. Political, legal, personality, and cultural factors are other ways to segment a market, but they are not mentioned in the scenario.

Question 17

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

User status segmentation is the method of market segmentation where the market is divided based on the different types of user statuses of a product or brand. This includes nonusers, ex-users, potential users, first-time users, and regular users. The other given options - usage rate segmentation, benefit segmentation, behavioral segmentation, and loyalty status segmentation - are different methods of market segmentation.

Question 18

ProFem Inc.caters its line of sports apparel exclusively to women.What type of segmentation does the company use?

Accepted Answer

ProFem Inc. uses gender segmentation as it caters its sports apparel exclusively to women.

Question 19

The marketing manager at Frizzles' Eateries targets customers who are working to lose weight but who still want to dine out.The restaurant chain offers a wide variety of low-fat,low-calorie meals that appeal to dieters.Frizzles' approach is best referred to as ________ segmentation.

Accepted Answer

Frizzles' approach is based on providing a benefit (low-fat, low-calorie meals) to a specific group of customers (those working to lose weight) rather than on demographic, geographic, or age and life-cycle factors. This is known as benefit segmentation.

Question 20

Gold Class Electricals,a consumer-electronics firm,targets market segments based on factors such as country,age,social class,usage rate,and benefits sought.The company divides its markets based on ________.

Accepted Answer

The company is dividing its markets based on multiple segmentation bases, which includes demographic variables (age, social class), usage rate, and benefits sought. It is not solely based on one segmentation base, such as geographic regions or psychographic segmentation bases. The use of multiple segmentation bases allows for a more targeted and effective marketing strategy.

Quiz 6: Customer-Driven Marketing Strategy: Creating Value for Target Customers