Question 1

Which of the following types of segmentation groups consumers based on the benefits they derive from products or services, their usage rate, their user status, and their loyalty?

Accepted Answer

The answer of Which of the following types of segmentation...

Question 2

Which of the following is a part of the vertical dimension as established by VALS?

Accepted Answer

The vertical dimension in VALS (Values and Lifestyles) is related to resources and innovativeness, which includes factors like income, education, self-confidence, and energy levels. Innovativeness is part of this dimension.

Question 3

Magas is a business information service provider that helps companies by dividing the consumer market into different consumer segments.One such segment consists of neighbourhoods that are populated by super-rich families.People in this segment are more likely to take cruise ship vacations and store money in offshore banks.This is an example of:

Accepted Answer

Geodemographic segmentation divides the market based on geographic areas and demographic characteristics, such as neighborhoods with super-rich families.

Question 4

Which of the following holds true for benefit segmentation?

Accepted Answer

Benefit segmentation involves dividing consumers based on the specific benefits they seek from products or services.

Question 5

The concept of being "reachable" as a prerequisite for market segmentation refers to the fact that:

Accepted Answer

Segments should be accessible to the firms through persuasive communications and product distribution, meaning the firm must be able to reach the segment effectively.

Question 6

Marketers can track and compare sales performance among various clusters in different locations with the help of systems, such as PSYTE and PRIZM CE.

Accepted Answer

Geodemographic systems like PSYTE and PRIZM CE analyze and categorize consumers based on geographic and demographic data, allowing marketers to track and compare sales performance across different locations.

Question 7

Which of the following holds true for loyalty segmentation?

Accepted Answer

Loyalty segmentation focuses on identifying and retaining the most profitable customers by investing in retention strategies and initiatives.

Question 8

A company uses a youth icon to endorse its new range of biker glasses.The commercial symbolizes youth and freedom.An individual who wants to live a life of freedom would be attracted to the ad.This is an example of:

Accepted Answer

Lifestyle refers to the way a person lives, including their activities, interests, and values. The commercial appeals to individuals who value freedom and youth, which is a lifestyle choice.

Question 9

Olympic Athletic Wear segments its markets according to advantages that different consumers seek from its products.It has products for consumers who seek style and different products for others who seek performance.This is an example of:

Accepted Answer

Benefit segmentation involves dividing a market based on the different benefits that consumers seek from a product, such as style or performance in this case.

Question 10

A company that deals in sprays, creams, and perfumes uses promotional coupons to entice people to buy and try its product.This is an example of:

Accepted Answer

Behavioral segmentation involves dividing a market based on consumer knowledge, attitudes, uses, or responses to a product, such as using promotional coupons to influence purchasing behavior.

Question 11

Childcare Company produces baby products.It provides product samples to parents-to-be in order to capture a share of their future purchases.It has created a website where parents can get expert parenting advice.It targets potential user groups who can be converted into heavy users.This is an example of:

Accepted Answer

This is an example of behavioural segmentation as the company is targeting potential user groups based on their future purchasing behavior and usage patterns.

Question 12

In a certain Canadian province, some areas are populated by young Hispanics who are mainly blue-collar workers.They are not highly educated and live in rented apartments.However, some college graduates do inhabit this low-income area.They have white-collar service jobs.They go on vacations and read financial dailies.A company that develops products to serve both groups of people is using:

Accepted Answer

Geodemographic segmentation is used as it combines geographic and demographic factors to target specific groups within a population, such as young Hispanics and college graduates in a low-income area.

Question 13

Makers Shoes often has interesting offers for regular customers.These customers are the first to be informed about a new collection.Also, when shoes are on sale, they receive a newsletter in which they are given the opportunity to be the first to avail themselves of the special discounts available.This is an example of:

Accepted Answer

This is an example of loyalty segmentation, where the company targets customers based on their loyalty and regular purchasing behavior, offering them exclusive benefits and early access to promotions.

Question 14

Which of the following holds true for the term PSYTE cluster?

Accepted Answer

PSYTE cluster refers to a system used in Canada that categorizes neighborhoods into 60 different lifestyle groups based on demographics and consumer behavior.

Question 15

How we live our lives to achieve goals is called:

Accepted Answer

Lifestyle refers to the way individuals live their lives, including their behaviors, habits, and activities, in order to achieve their goals and fulfill their values.

Question 16

The grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle characteristics is called:

Accepted Answer

Geodemographic segmentation combines geographic, demographic, and lifestyle characteristics to group consumers.

Question 17

A fast-food chain targets young males who account for almost 75 percent of all customer visits and visit the restaurant, on average, 20 times a month.They are called "Jumbo" customers.The fast-food chain has segmented its customers on the basis of usage rate, with the "Jumbo" customers being the heavy users.This is an example of:

Accepted Answer

The segmentation is based on the usage rate, which is a behavioral characteristic, making it an example of behavioral segmentation.

Question 18

A toothpaste manufacturing company segments its target population based on the four characteristics that it believes a customer requires: economic worth, medicinal value, cosmetic use, and taste.This is an example of:

Accepted Answer

The company is segmenting its market based on the benefits that customers seek from the product, such as economic worth, medicinal value, cosmetic use, and taste. This is known as benefit segmentation.

Question 19

The concept of being "identifiable" as a prerequisite for market segmentation refers to the fact that:

Accepted Answer

Identifiability in market segmentation means that segments should be distinct from one another, allowing firms to design specific products or services to meet the unique needs of each segment.

Question 20

The concept of being "responsive" as a prerequisite for market segmentation refers to the fact that:

Accepted Answer

The concept of being "responsive" in market segmentation means that the customers within a segment should react similarly and positively to the firm's marketing efforts, ensuring that the segment is viable and worth targeting.

Quiz 7: Value Creation Developing New Products