Question 1

The 80/20 principle holds that 20 percent of all customers generate 80 percent of the demand.Although the percentages usually are not exact,the general idea often holds true.Which consumer market segment is described here?
A) Benefit segmentation
B) Geographic segmentation
C) Market segmentation
D) Usage-Rate segmentation

Accepted Answer

Usage-Rate segmentation is described here, as it involves dividing a market based on the amount of product usage, where a small percentage of customers account for a large portion of demand.

Question 2

Why do marketers segment their markets and what are the basic criteria for doing so successfully?
A) Segments must be composed of people with different product needs.
B) Segments must be composed of people with different characteristics.
C) Segments must be large enough to warrant developing and maintaining a special marketing mix.
D) Segments must be divided according to the North American Industry Classification System.

Accepted Answer

Marketers segment their markets to target specific groups effectively. Successful segmentation requires that segments are substantial enough to justify the resources needed for a tailored marketing strategy.

Question 3

Terra Corp.produces a wide range of furniture,such as cabinets,book cases,and bureaus.It divides its consumer market into several groups of people who have similar interests in wooden furniture.The strategy of dividing its consumer market most likely:
A) allows Terra Corp.to meet the markets' needs with a single marketing mix.
B) enables Terra Corp.to define customer needs and wants more precisely.
C) eliminate the need for developing marketing objectives.
D) allows Terra Corp.to use an undifferentiated targeting strategy.

Accepted Answer

Dividing the market into groups with similar interests helps Terra Corp. understand and meet the specific needs and wants of each group more precisely.

Question 4

A market is people or organizations with needs or wants and with the ability and the willingness to buy.

Accepted Answer

A market consists of individuals or organizations that have specific needs or wants and possess both the financial means and the desire to purchase goods or services to satisfy those needs or wants.

Question 5

Market segmentation helps decision makers to more accurately define marketing objectives and better allocate resources.

Accepted Answer

Market segmentation allows businesses to target specific groups of consumers, leading to more precise marketing strategies and efficient use of resources.

Question 6

Which of the following is true of usage-rate segmentation?
A) It combines former users,potential users,first-time users,light or irregular users,medium users,and heavy users.
B) Categories of products do not vary with the product in user-rate segmentation.
C) Heavy users often change their preferences.
D) It groups potential customers on the basis of their personality,motives,and lifestyles.

Accepted Answer

Usage-rate segmentation involves dividing a market by the amount of product bought or consumed, categorizing consumers as former users, potential users, first-time users, light or irregular users, medium users, and heavy users.

Question 7

The process of defining,dividing,and subdividing a large homogenous market into clear identifiable segments having similar needs,wants,or demand characteristics is identified as _____________________________.
A) market segmentation
B) a consumer market
C) market criteria
D) market concentration

Accepted Answer

Market segmentation is the process of dividing a broad consumer or business market into sub-groups of consumers based on some shared characteristics.

Question 8

Which statement is true of market segmentation?
A) It helps marketers design marketing mixes that match the characteristics of one or more segments.
B) It allows marketers to use an undifferentiated targeting strategy.
C) It allows marketers to adopt a single marketing mix across all market segments.
D) It helps marketers focus on satisfying customer needs.

Accepted Answer

Market segmentation helps marketers design marketing mixes that are tailored to the specific characteristics and needs of different market segments, rather than using a one-size-fits-all approach.

Question 9

A firm which produces replicas of famous paintings of reputed and great artists has as its target customers: socialites,celebrities,and the hospitality industry.What type of market segmentation is used in this case?
A) Geographic segmentation
B) Psychographic segmentation
C) Benefit segmentation
D) Demographic segmentation

Accepted Answer

The answer of A firm which produces replicas of famous...

Question 10

Based on age segmentation of a target market,which group is at peak earning power but seeks to spend only on products that provide the best value for money?
A) Generation X
B) Generation Y
C) Generation Z
D) Baby Boomers

Accepted Answer

Generation X, typically born between 1965 and 1980, is at peak earning power and tends to be value-conscious, seeking products that offer the best value for money.

Question 11

The key tool in the marketing strategy of every successful organization for reaching the targeted customer is:
A) planning the marketing strategy.
B) improving marketing premises.
C) market segmentation.
D) market criteria.

Accepted Answer

Market segmentation is crucial as it allows organizations to identify and target specific groups of consumers, tailoring their marketing efforts to meet the needs and preferences of these segments effectively.

Question 12

The purpose of market segmentation is to:
A) change consumer attitudes and beliefs toward a product.
B) divide a market into submarkets of equal size and equal number of customers.
C) eliminate the need for developing marketing objectives.
D) enable a marketer to tailor marketing mixes to meet the needs of one or more specific segments.

Accepted Answer

Market segmentation allows marketers to create more targeted and effective marketing strategies by addressing the specific needs and preferences of different customer groups.

Question 13

It is possible to define every person and every organization in the world as a market segment because each is unique.

Accepted Answer

Market segmentation can be as granular as defining each individual or organization as a unique segment, although it is not practical for most marketing strategies.

Question 14

A market segment is a subgroup of people or organizations having different characteristics that cause them to have distinct product needs.

Accepted Answer

A market segment is a subgroup of people or organizations having similar characteristics that cause them to have similar product needs.

Question 15

To develop a successful segmentation scheme,marketers gather data about the population within specific geographic boundaries,the number of people in various age categories,and other social and demographic characteristics.This example describes which of the four basic criteria used to develop useful segment schemes?
A) Sustainability
B) Identifiability and measurability
C) Responsiveness
D) Accessibility

Accepted Answer

Identifiability and measurability refer to the ability to identify and measure the characteristics of the segments, such as demographic data, which is what the example describes.

Question 16

Market segmentation helps marketers define customer needs and wants more precisely because market segments do not differ in size and potential.

Accepted Answer

Market segments often differ in size and potential, which is why segmentation helps marketers tailor their strategies to meet the specific needs and wants of different groups.

Question 17

A cosmetic company manufactures products for skin and hair care for both men and women in the 20- to 50-year-old age group.Which type of market segmentation approach does the company undertake?
A) Geographic segmentation
B) Psychographic segmentation
C) Benefit segmentation
D) Demographic segmentation

Accepted Answer

The company targets products based on age and gender, which are demographic factors.

Question 18

What is the similarity between a stock market and a labor market?
A) Both use a barter system to facilitate the exchange of products.
B) Both are composed of people who are unwilling to spend large sums of money for products or services.
C) Both are composed of people with specific wants that can be satisfied by particular product categories.
D) Both deal in selling high-end,consumer durable products.

Accepted Answer

Both the stock market and labor market involve participants with specific needs or wants that can be satisfied by particular offerings, such as stocks or job opportunities.

Question 19

Which of the following statements is true of markets?
A) They are composed of people or organizations.
B) They thrive only with government funds and subsidies.
C) They provide discounts for every consumer.
D) They influence consumers to buy products they do not need.

Accepted Answer

Markets are composed of people or organizations that engage in the exchange of goods, services, or information.

Question 20

Discuss the importance of market segmentation.

Accepted Answer

The answer of Discuss the importance of market segmentation....

Quiz 8: Segmenting and Targeting Markets

The 80/20 principle holds that 20 percent of all customers generate 80 percent of the demand.Although the percentages usually are not exact,the general idea often holds true.Which consumer market segment is described here?

Why do marketers segment their markets and what are the basic criteria for doing so successfully?

Terra Corp.produces a wide range of furniture,such as cabinets,book cases,and bureaus.It divides its consumer market into several groups of people who have similar interests in wooden furniture.The strategy of dividing its consumer market most likely:

A market is people or organizations with needs or wants and with the ability and the willingness to buy.

Market segmentation helps decision makers to more accurately define marketing objectives and better allocate resources.

Which of the following is true of usage-rate segmentation?

The process of defining,dividing,and subdividing a large homogenous market into clear identifiable segments having similar needs,wants,or demand characteristics is identified as _____________________________.

Which statement is true of market segmentation?

A firm which produces replicas of famous paintings of reputed and great artists has as its target customers: socialites,celebrities,and the hospitality industry.What type of market segmentation is used in this case?

Based on age segmentation of a target market,which group is at peak earning power but seeks to spend only on products that provide the best value for money?

The key tool in the marketing strategy of every successful organization for reaching the targeted customer is:

The purpose of market segmentation is to:

It is possible to define every person and every organization in the world as a market segment because each is unique.

A market segment is a subgroup of people or organizations having different characteristics that cause them to have distinct product needs.

Market segmentation helps marketers define customer needs and wants more precisely because market segments do not differ in size and potential.

A cosmetic company manufactures products for skin and hair care for both men and women in the 20- to 50-year-old age group.Which type of market segmentation approach does the company undertake?

What is the similarity between a stock market and a labor market?

Which of the following statements is true of markets?

Discuss the importance of market segmentation.