Question 1

Secondary data are generally more useful than primary data because secondary data are more voluminous, more readily available, and cheaper to obtain.

Accepted Answer

Secondary data, while often more readily available and cheaper, may not be as relevant, current, or specific to the researcher's needs as primary data, making primary data potentially more useful for certain research objectives.

Question 2

Burberry, whose plaid-lined gabardine raincoats have been a symbol of British tradition since 1856, is repositioning itself as a global luxury brand like Gucci and Louis Vuitton. This is an example of behavioural segmentation.

Accepted Answer

Behavioural segmentation refers to dividing customers based on their behaviour towards a product or brand, such as loyalty, usage rate, or attitude. Burberry's repositioning strategy towards a global luxury brand is an example of such behaviour-based segmentation.

Question 3

When marketers segment markets based on demographics, they are doing so on the basis of factors like age, education, family size, and income, but not on the basis of factors like nationality, race, and religion.

Accepted Answer

The answer of When marketers segment markets based on demographics,...

Question 4

The four elements in the marketing mix are generally equally important.

Accepted Answer

The four elements in the marketing mix (product, price, place, promotion) are not always equally important. The level of importance can vary depending on the product, target audience, and marketing strategy. For example, in some cases, price may be the most important element, while in others, promotion may take priority.

Question 5

Product positioning is most closely related to the "place" element in the marketing mix.

Accepted Answer

Product positioning is related to the "promotion" element in the marketing mix, as it involves creating an image or perception of the product in the minds of consumers. "Place" refers to the distribution channels or channels of availability for the product.

Question 6

Typical variables used in segmenting markets by demographic characteristics include age, education, family life cycle, family size, income, nationality, race, religion, and sex.

Accepted Answer

These are common demographic variables used in market segmentation.

Question 7

Target markets are first defined by product, then by consumers.

Accepted Answer

Target markets are first defined by consumers and their needs, then by the product or service that best meets those needs.

Question 8

Market segmentation and product differentiation are almost identical concepts, except that market segmentation puts more emphasis on "price" while product differentiation puts more emphasis on "place."

Accepted Answer

Market segmentation is the process of dividing a market into smaller groups of consumers with similar needs or characteristics, while product differentiation is the process of creating a unique product or service that sets it apart from competitors. Both concepts focus on different aspects of the marketing mix, with market segmentation emphasizing price and other factors such as demographics, psychographics, and behavior, while product differentiation emphasizes place (distribution), promotion, and other factors such as product features, quality, and design.

Question 9

Market segmentation must be done carefully, as a group of people may share an age category, income level, or some other segmentation variable, but their spending habits may be quite different.

Accepted Answer

Market segmentation variables are only the starting point for market segmentation. It's important to conduct further research and analysis to understand subgroups within each segment and tailor marketing strategies accordingly. Simply grouping people based on broad variables like age or income level may overlook important differences in behaviors and preferences.

Question 10

Psychographics, like demographics and geographics, are seldom changed by marketing efforts.

Accepted Answer

Psychographics can be influenced and changed by effective marketing efforts that resonate with a particular audience's values, beliefs, and interests.

Question 11

In terms of the 4 P's, market research is useful for the product, price, and promotion aspects, but not very useful for the distribution aspect.

Accepted Answer

Market research can also be very useful for the distribution aspect, as it can help identify the most effective channels and methods for reaching the target market.

Question 12

Hostess Frito-Lay, the maker of Doritos, spent a year studying how to best reach its target market (teenagers). The researchers hung around shopping malls, schools, and fast-food outlets to watch teens. This is an example of primary data gathering.

Accepted Answer

Primary data gathering involves collecting firsthand information directly from the source, in this case, the target market of teenagers. The Hostess Frito-Lay researchers observed teenagers in various settings to gather primary data on their behavior, preferences, and habits.

Question 13

Campbell's Soup has discovered that millenials are buying less soup than the population as a whole. This is an illustration of the importance of demographic variables in marketing.

Accepted Answer

Millenials are a specific demographic group and their buying behaviors differ from other age groups. Therefore, demographic variables such as age are important in marketing.

Question 14

A car like the Ford Focus tends to be positioned on the basis of economy, while a Porsche tends to be positioned on the basis of performance.

Accepted Answer

This statement is true. Ford Focus is known for its fuel efficiency and affordability, while Porsche is known for its high-performance capabilities and luxury features.

Question 15

Market research can be used at almost any point in a product's existence, but it is most commonly used when a new or altered product is being considered.

Accepted Answer

Market research can be used at any point in a product's existence, but it is often used when assessing the need for a new product or making changes to an existing one.

Question 16

The marketing plan is a detailed and focused strategy for gearing marketing activities to meet consumer needs and wants.

Accepted Answer

The statement accurately describes the purpose and nature of a marketing plan.

Question 17

Psychographic variables are more difficult to change than demographic variables.

Accepted Answer

The answer of Psychographic variables are more difficult to change...

Question 18

Segmentation is a strategy for analyzing consumers, not products.

Accepted Answer

Segmentation is a process of dividing a market into smaller groups of consumers with similar needs or characteristics. It focuses on understanding consumer behavior and preferences to create more effective marketing strategies, rather than solely analyzing the product itself.

Question 19

Lextel Ltd. is involved in a market research study. They have already studied the current situation to determine which needs exist. Their next step is to begin collecting data.

Accepted Answer

The answer of Lextel Ltd. is involved in a market...

Question 20

When Procter & Gamble sent video crews into households in the U.K., Germany, and China to capture people's daily routines and product interaction, this was an example of both primary data gathering and the use of observation as a market research method.

Accepted Answer

The statement correctly identifies the use of observation as a market research method, and the data gathered is primary because it is collected directly from the source (the households), rather than being compiled from existing sources.

Quiz 12: Understanding Marketing Principles and Developing Products