Question 1

Thompson Pools installs and maintains swimming pools.They group their customers according to their needs: new installs,regular maintenance,and frequent product consumers.When do they need a new segmentation analysis?
A) Once every 20 years is about average
B) They should do them regularly because of the rapidly changing nature of most markets
C) They don't need any because consumer markets don't rapidly change and develop like business goods markets
D) Every year,using new bases for variety
E) Only when the market changes

Accepted Answer

The rapidly changing nature of markets dictates regular reexamination of the segmentation process.

Question 2

Firms can be categorized by the type of purchasing strategy they use._____ usually contact familiar suppliers and place an order with the first that can meet product and delivery requirements.
A) Strugglers
B) Actualizers
C) Optimizers
D) Satisficers
E) Experiencers

Accepted Answer

This is the definition of satisficers.

Question 3

Which type of segmentation divides a market by the amount of product bought or consumed?
A) benefit segmentation
B) characteristic segmentation
C) usage-rate segmentation
D) demographic segmentation
E) psychographic segmentation

Accepted Answer

This is the definition of usage-rate segmentation.

Question 4

What is the first step in segmenting a market?
A) set the segmentation goals
B) choose a basis or bases for segmenting the market
C) select a market or product category for study
D) profile and analyze segments
E) select target markets

Accepted Answer

The steps in segmenting a market are (1)select a market or product category for study,(2)choose a basis or bases for segmenting the market,(3)select segmentation descriptors,(4)profile and analyze segments,(5)select target markets,and (6)design,implement,and maintain appropriate marketing mixes.

Question 5

Business marketers focus on all of the following market segments EXCEPT:
A) institutions
B) producers
C) households
D) resellers
E) governments

Accepted Answer

Households are part of the consumer market.

Question 6

The public transportation system in the San Francisco area conducted a survey that revealed respondents could be assigned to one of four categories: (1)people who never utilized mass transit,(2)people who utilized mass transit in the past but not now,(3)people who utilized mass transit occasionally,and (4)people who utilized mass transit regularly.These groups have significantly different perceptions about transportation alternatives.This is an example of _____ segmentation.
A) demographic
B) benefit
C) aggregate
D) economic
E) usage-rate

Accepted Answer

Segmenting users by amount purchased or consumed is usage-rate segmentation.

Question 7

A number of plastic surgery groups in Great Britain are making use of loyalty cards.Patients who have five procedures performed at their offices will receive either a free procedure or a discount off another more complex surgical procedure.Aimed at patients who get maintenance treatments such as Botox or regular face peels,the loyalty cards may be used toward any type of surgical procedure.This is an example of segmentation by:
A) demographic
B) benefit
C) aggregate
D) economic
E) usage-rate

Accepted Answer

Segmenting users by amount purchased or consumed is usage-rate segmentation.

Question 8

The _____ proposes that a minority of a firm's customers purchase a majority of the volume of the product.
A) majority fallacy
B) equity fallacy
C) 80/20 principle
D) cannibalization rule
E) optimizer principle

Accepted Answer

This is the definition of the 80/20 principle.

Question 9

Train collectors Jack McCoy and Sandro Dias have decided to open a store that sells train memorabilia--everything from toy train sets to full-sized railroad signs.After 18 months in business,they have noticed most of their sales are to the same small group of customers (about 40 people)even though they have records to show there are over 200 active train collectors within a 50-mile radius of their store.Their retailing experience is supportive of the:
A) optimizer principle
B) min-max rule
C) majority fallacy
D) rule of demand
E) 80/20 principle

Accepted Answer

The 80/20 principle proposes that a minority of a firm's customers purchase a majority of the volume of the product.

Question 10

All of the following are steps in the market segmenting process EXCEPT:
A) determine the objectives of the segmentation strategy
B) profile and analyze segments
C) design,implement,and maintain appropriate marketing mixes
D) select a market or product category for study
E) choose a basis or bases for segmenting the market

Accepted Answer

The steps in segmenting a market are (1)select a market or product category for study,(2)choose a basis or bases for segmenting the market,(3)select segmentation descriptors,(4)profile and analyze segments,(5)select target markets,and (6)design,implement,and maintain appropriate marketing mixes.

Question 11

The Green Earth,a landscaping company,finds that the most difficult firms to get business from are the _____ because this group considers numerous,even unfamiliar suppliers,solicits bids,and carefully analyzes options; therefore,it requires a higher levels of customer service.
A) actualizers
B) strivers
C) satisficers
D) optimizers
E) early adopters

Accepted Answer

Firms that use an optimizer purchase strategy consider many suppliers and analyze their options carefully.

Question 12

Zatarains offers packaged spice mixes for jambalaya,gumbo,and red beans and rice.Consumers can buy the product in the store,so Zatarains sells individual household-size packages to resellers.It also sells institutional-size packages to military bases,schools,restaurants,and other large organizations.The marketers of Zatarains would most likely segment the business market according to:
A) company characteristics
B) the buying process
C) financial terms
D) customer relationship objectives
E) length of distribution channel

Accepted Answer

Each of the buyers of Zatarains' products have distinct characteristics to be met,such as type of company,company size,and product use.

Question 13

Hank operates a plumbing and electrical supply store.He has categorized its business customers by their purchasing strategy.Hank has found it much easier to serve and satisfy the _____,who usually recontact familiar suppliers and place an order immediately if product and delivery requirements are acceptable.
A) adopters
B) adaptors
C) optimizers
D) innovators
E) satisficers

Accepted Answer

Satisficers use a simple,quick purchasing strategy of looking for the first available adequate supplier.

Question 14

Most airline frequent flyer programs reward the most frequent flyers with business class upgrades and flight lounge privileges.Airlines are using these rewards as a means of implementing _____ segmentation.
A) lifestyle
B) motive
C) usage-rate
D) demographic
E) personality

Accepted Answer

Usage rate segmentation divides a market by consumption so that firms can target their heavy users more.

Question 15

After selecting a market for study and choosing bases for segmenting that market,the next step is to:
A) choose a basis or bases for segmenting the market
B) implement and maintain a marketing mix
C) design a marketing mix
D) profile and analyze segments
E) select target markets

Accepted Answer

The steps in segmenting a market are (1)select a market or product category for study,(2)choose a basis or bases for segmenting the market,(3)select segmentation descriptors,(4)profile and analyze segments,(5)select target markets,and (6)design,implement,and maintain appropriate marketing mixes.

Question 16

What does the 80/20 principle propose?
A) Roughly 80 percent of the profit comes from 20 percent of the sales.
B) Roughly 80 percent of a firm's customers are repeat business.
C) Roughly 50 percent of a firm's customers purchase 80 percent of the sales volume of the product.
D) Roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product.
E) Sales are equally divided among heavy,medium,and light users,but they all need slightly different products.

Accepted Answer

The 80/20 principle proposes that a minority of a firm's customers purchase a majority of the volume of the product.

Question 17

June LaVista owns a health and fitness gym.After dividing her customers into four segments based on income range,age,level of fitness,and other selected segmentation descriptors,she wrote out a description of each segment's size,expected growth,frequency of exercise,and overall profit potential.Which step in segmenting a market is LaVista engaged in?
A) profiling and analyzing her market segments
B) positioning her products to her market segments
C) targeting promotions to her market segments
D) differentiating her market segments
E) concentrating her marketing mix on the most profitable marketing segments

Accepted Answer

The profiling and analysis of the segments step in segmenting a market involves analyzing the segments' size,expected growth,purchase frequency,and so on.

Question 18

Tower Fasteners developed a commanding position in the fastener industry by having in stock over 150,000 different types of fasteners.Tower's primary market is defined as companies with a need for specialized fasteners.All of the following are characteristics of the buying organization that Tower can use for segmentation EXCEPT:
A) psychographic variables
B) the method the company uses to make purchases
C) geographic location
D) personal characteristics of purchase decision makers
E) company size

Accepted Answer

Psychographic variables are used in the consumer market.

Question 19

Firms can be categorized by the type of purchasing strategy used._____ consider numerous,even unfamiliar suppliers and solicit and analyze options.
A) Satisficers
B) Strivers
C) Optimizers
D) Actualizers
E) Innovators

Accepted Answer

This is the definition of optimizers.

Question 20

General Mills offers a deal where its cereal users can collect box tops and submit them to General Mills to earn money for their children's schools.This program,called the Box Tops for Education Program,is a means of changing light users into heavier users.In other words,it is a form of _____ segmentation.
A) lifestyle
B) motive
C) usage-rate
D) demographic
E) personality

Accepted Answer

Usage-rate segmentation divides a market by the amount of product bought or consumed.

Quiz 8: Segmenting and Targeting Markets

Thompson Pools installs and maintains swimming pools.They group their customers according to their needs: new installs,regular maintenance,and frequent product consumers.When do they need a new segmentation analysis?

Firms can be categorized by the type of purchasing strategy they use._____ usually contact familiar suppliers and place an order with the first that can meet product and delivery requirements.

Which type of segmentation divides a market by the amount of product bought or consumed?

What is the first step in segmenting a market?

Business marketers focus on all of the following market segments EXCEPT:

The _____ proposes that a minority of a firm's customers purchase a majority of the volume of the product.

All of the following are steps in the market segmenting process EXCEPT:

The Green Earth,a landscaping company,finds that the most difficult firms to get business from are the _____ because this group considers numerous,even unfamiliar suppliers,solicits bids,and carefully analyzes options; therefore,it requires a higher levels of customer service.

Most airline frequent flyer programs reward the most frequent flyers with business class upgrades and flight lounge privileges.Airlines are using these rewards as a means of implementing _____ segmentation.

After selecting a market for study and choosing bases for segmenting that market,the next step is to:

What does the 80/20 principle propose?

Firms can be categorized by the type of purchasing strategy used._____ consider numerous,even unfamiliar suppliers and solicit and analyze options.