Question 1

Which of the following basic requirements must market segmentation meet to be effective?
A) The firm must avoid focusing on non-variables, such as profitability and volume.
B) The market segment must reflect the population's changing attitudes and lifestyles.
C) The company must expand beyond its marketing capabilities to capture growing markets.
D) The market segment must have measurable purchasing power and size.

Accepted Answer

For market segmentation to be effective, the segment must have measurable purchasing power and size, ensuring that it is substantial enough to be profitable and that its characteristics can be quantified for targeted marketing efforts.

Question 2

When one product becomes part of another product that is destined for resale, what is the first product considered?
A) consumer product
B) business product
C) commercial market product
D) industrial market product

Accepted Answer

When one product becomes part of another product that is destined for resale, it is considered a business product. Business products are goods and services purchased for use either directly or indirectly in the production of other goods and services for resale.

Question 3

What is the lumber a carpenter purchases to finish a client's basement known as?
A) raw material
B) business product
C) consumer good
D) home-improvement product

Accepted Answer

The lumber is considered a business product because it is used by the carpenter in the course of conducting business to complete a service for a client.

Question 4

What is the division of the total market into smaller, homogenous groups called?
A) customer aggregation
B) market capitalization
C) market segmentation
D) brand segmentation

Accepted Answer

Market segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics.

Question 5

Which of the following is NOT a common basis for segmenting consumer markets?
A) geographic
B) psychographic
C) competitive
D) demographic

Accepted Answer

Competitive segmentation is not a common basis for segmenting consumer markets. Market segmentation typically involves dividing a market into subgroups based on characteristics like geographic location, psychographic traits (lifestyle, values, attitudes), and demographic factors (age, gender, income). Competitive segmentation, which would involve segmenting markets based on competitors, is not a standard approach for categorizing consumer markets.

Question 6

What are computer systems that help marketers analyze marketing information by assembling, storing, manipulating, and displaying data by their location known as?
A) core based information systems
B) inertial navigation systems (INS)
C) geographic information systems (GIS)
D) advanced navigation assessment systems

Accepted Answer

Geographic Information Systems (GIS) are designed to capture, store, manipulate, analyze, manage, and present spatial or geographic data, making them ideal for marketers to analyze information based on location.

Question 7

What is one of the two largest metropolitan areas in the world?
A) Montreal
B) Tokyo
C) New York
D) London

Accepted Answer

Tokyo is one of the two largest metropolitan areas in the world by population, alongside cities like New York.

Question 8

An automobile manufacturer generates approximately one-half of its sales in two provinces in Canada. What do these provinces constitute for the company?
A) primary consumer market
B) core region
C) secondary market
D) sales region

Accepted Answer

The provinces where the company generates a significant portion of its sales are considered its core region, as they are central to its business operations and revenue.

Question 9

How would a geographic area surrounding an urban core with a population of at least 100 000 be classified?
A) as a census metropolitan area (CMA)
B) as a primary metropolitan region (PMR)
C) as a metropolitan statistical area (MSA)
D) as a census agglomeration (CA)

Accepted Answer

A geographic area surrounding an urban core with a population of at least 100,000 is classified as a census metropolitan area (CMA) in Canada.

Question 10

Which market segment could a marketing organization most effectively promote to and serve based on the segment's size and profit potential?
A) the staff of foreign embassies from European countries
B) baby boomers
C) captains and crews of sea-going vessels
D) collectors of classic MG sports cars

Accepted Answer

Baby boomers represent a large and affluent demographic group with significant spending power, making them an attractive market segment for many products and services.

Question 11

Which statement does NOT accurately describe market segmentation?
A) Only for-profit organizations practice market segmentation.
B) Firms that practice market segmentation don't necessarily change their products to meet the needs of different market segments.
C) There are too many variables to attract all customers using the same marketing mix.
D) Market segmentation attempts to divide the total market into smaller groups.

Accepted Answer

Market segmentation is practiced by both for-profit and non-profit organizations. It is a strategy used to identify and target specific groups within a larger market, not limited to businesses seeking profit.

Question 12

In addition to population and geography, a researcher might combine other indicators to segment markets geographically. Which of the following indicators would marketers be least likely to use?
A) income and job growth
B) migration patterns
C) average size of the households
D) product-usage patterns

Accepted Answer

The answer of In addition to population and geography, a...

Question 13

What type of segmentation is a firm practising when it divides its customers into homogeneous groups based on their locations?
A) psychographic
B) product-based
C) geographic
D) demographic

Accepted Answer

When a firm divides its customers into homogeneous groups based on their locations, it is practicing geographic segmentation. This approach categorizes customers based on geographical boundaries such as cities, regions, or countries.

Question 14

Based on the most recent census data, where does the majority of the Canadian population live?
A) in Toronto, Ontario
B) between Montreal, Quebec, and Windsor, Ontario
C) in 33 metropolitan areas across the country
D) in Calgary, Alberta

Accepted Answer

The majority of the Canadian population lives in 33 metropolitan areas across the country.

Question 15

What is a commonly used basis for segmenting consumer markets?
A) geographic segmentation based on locations
B) career segmentation based on industry affiliation
C) national segmentation based on citizenship
D) institutional segmentation based on membership

Accepted Answer

Geographic segmentation is a common method for segmenting consumer markets, as it divides the market based on locations such as countries, cities, or neighborhoods, allowing for tailored marketing strategies.

Question 16

Kyle plans to buy new tires for a converted bus his family uses for camping trips. The tires are the same type used on General Motors commercial trucks and can be purchased from Industrial Tire Company. How are the tires that Kyle will buy for this bus classified?
A) business products
B) service products
C) commercial products
D) consumer products

Accepted Answer

The answer of Kyle plans to buy new tires for...

Question 17

How might business products be identified?
A) as goods and services purchased for use either directly or indirectly in the production of other goods and services for resale
B) as goods and services of any kind bought for use in the home, but sold later as used items
C) as goods and services, such as legal services, that can be bought by businesses or individuals but do not enter into the production of finished goods
D) as goods and services sold in a finished state for use in the home or the business office

Accepted Answer

Business products are identified as goods and services purchased for use either directly or indirectly in the production of other goods and services for resale. This definition encompasses the broad range of products that businesses buy to support their operations, including raw materials, components, and various services that contribute to the production process.

Question 18

What term refers to goods and services purchased by the ultimate user for personal use?
A) personal products
B) purchased products
C) consumer products
D) commercial products

Accepted Answer

Consumer products are specifically purchased by the ultimate user for personal use, distinguishing them from commercial products, which are bought for business purposes.

Question 19

What is the basis for determining whether pencils are consumer products or business products?
A) the purpose for which the pencils are purchased
B) the number of pencils that are purchased
C) where the pencils are purchased from
D) the total price paid for the number of pencils

Accepted Answer

The classification of pencils as consumer products or business products is based on the purpose for which they are purchased. If they are bought for personal use, they are considered consumer products. If purchased for use in a business or organizational setting, they are classified as business products.

Question 20

Generally speaking, what are rubber and raw cotton examples of?
A) business products
B) consumer products
C) fabricated materials
D) nonpersonal products

Accepted Answer

Rubber and raw cotton are examples of business products because they are materials used by companies to produce other goods or services, rather than being sold directly to consumers.

Quiz 9: Marketing Segmentation, Targeting, and Positioning

Which of the following basic requirements must market segmentation meet to be effective?

When one product becomes part of another product that is destined for resale, what is the first product considered?

What is the lumber a carpenter purchases to finish a client's basement known as?

What is the division of the total market into smaller, homogenous groups called?

Which of the following is NOT a common basis for segmenting consumer markets?

What are computer systems that help marketers analyze marketing information by assembling, storing, manipulating, and displaying data by their location known as?

What is one of the two largest metropolitan areas in the world?

An automobile manufacturer generates approximately one-half of its sales in two provinces in Canada. What do these provinces constitute for the company?

How would a geographic area surrounding an urban core with a population of at least 100 000 be classified?

Which market segment could a marketing organization most effectively promote to and serve based on the segment's size and profit potential?

Which statement does NOT accurately describe market segmentation?

In addition to population and geography, a researcher might combine other indicators to segment markets geographically. Which of the following indicators would marketers be least likely to use?

What type of segmentation is a firm practising when it divides its customers into homogeneous groups based on their locations?

Based on the most recent census data, where does the majority of the Canadian population live?

What is a commonly used basis for segmenting consumer markets?

Kyle plans to buy new tires for a converted bus his family uses for camping trips. The tires are the same type used on General Motors commercial trucks and can be purchased from Industrial Tire Company. How are the tires that Kyle will buy for this bus classified?

How might business products be identified?

What term refers to goods and services purchased by the ultimate user for personal use?

What is the basis for determining whether pencils are consumer products or business products?

Generally speaking, what are rubber and raw cotton examples of?