Question 1

A manufacturer of toothpaste has segmented the market and developed distinct product offerings designed to appeal to the three different segments.One product offers all day protection from tooth decay,a second product offers whiter,brighter teeth and the third product offers all day mouth freshness.Which approach to segmentation is the company most likely to have used?

Accepted Answer

The company has developed distinct product offerings based on the benefits that are most important to each segment. Segment 1 values protection from tooth decay, Segment 2 values whiter, brighter teeth, and Segment 3 values all day mouth freshness. This is an example of benefit segmentation.

Question 2

When Pacific Fisheries groups its customers as countries by regions such as Asia,Australia or New Zealand,it is using which segmenting base?

Accepted Answer

Pacific Fisheries is segmenting its customers based on geographic location, specifically by grouping them as countries in the regions of Asia, Australia or New Zealand. This is an example of geographic segmentation, which divides the market based on physical locations or boundaries.

Question 3

When an effective program can be designed for attracting and serving a chosen segment,the segment is best described as ________.

Accepted Answer

An effective program for attracting and serving a chosen segment indicates that the segment is actionable. This means the segment can be effectively targeted and served with a specific set of marketing strategies or actions.

Question 4

The division of buyers into groups based on their knowledge,attitudes,uses or responses to a product is ________ segmentation.

Accepted Answer

Behavioural segmentation is the division of buyers based on their behaviour, such as their knowledge, attitudes, uses or responses to a product, which can help in understanding the needs and preferences of each group and developing targeted marketing strategies. Psychographic segmentation is the division of buyers based on their personality, values, attitudes, interests, and lifestyles. Age and life-cycle segmentation is the division of buyers based on their age and their family life cycle stage. Demographic segmentation is the division of buyers based on their demographic characteristics such as age, gender, income, education, occupation, and social class. Geographic segmentation is the division of buyers based on their geographic location such as region, city, or climate.

Question 5

The manufacturers of the stylish motor vehicle,Lexus,target wealthy consumers with similar needs and buying behaviours,even though the consumers are located in different countries.This is an example of ________.

Accepted Answer

Intermarket segmentation involves identifying similarities in needs and behaviors across different countries or regions and then targeting those segments with a standardized marketing approach. Lexus targeting wealthy consumers with similar needs and behaviors in different countries is an example of intermarket segmentation.

Question 6

When a market segment is large or profitable enough to serve,it is termed ________.

Accepted Answer

A market segment needs to be substantial, meaning it is large enough and profitable enough to serve, in order for a company to pursue it.

Question 7

When the size,purchasing power and profiles of a market segment can be determined,it possesses the requirement of being ________.

Accepted Answer

When a market segment's size, purchasing power, and profiles can be determined, it meets the requirement of being measurable. This means that the segment can be quantified and its characteristics understood, which is essential for targeting and positioning strategies.

Question 8

Markets can be segmented into groups of nonusers,ex-users,potential users,first-time users and regular users of a product.This method of segmentation is called ________.

Accepted Answer

This method of segmentation is called user status, which divides the market based on different levels of usage of a product or service. The different groups include nonusers, ex-users, potential users, first-time users, and regular users. This segmentation helps in targeting specific groups with relevant marketing strategies.

Question 9

The market segments your company is targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs.Therefore,these segments are ________.

Accepted Answer

Market segments that respond differently to different marketing mix elements and programs are said to be differentiable. It means that the segments are identifiable and have unique characteristics that distinguish them from each other. This is an important factor when designing marketing strategies as it helps to tailor the marketing mix to the specific needs and preferences of each segment. Accessible, measurable, reachable and observable are also important criteria for market segmentation, but they do not directly relate to the concept of distinguishing segments based on their responses to marketing efforts.

Question 10

As in consumer segmentation,many marketers believe that ________ and ________ provide the best basis for segmenting business markets.

Accepted Answer

Business markets are segmented by analyzing the buying behavior of individual businesses and the benefits they seek from a particular product or service. User status and user loyalty are also important factors to consider while segmenting business markets, but they fall under the category of buying behavior. Geographic and demographic factors are less relevant in business segmentation, whereas income and usage rate may play a role in certain industries, but not universally. Age, life-cycle, and psychographic segmentation are more applicable to consumer markets than business markets. Therefore, the best choice for segmenting business markets is C - buying behavior and benefits.

Question 11

MTV targets the world's teenagers,who have similar needs and buying behaviour even though they are located in different countries.This is called ________ segmentation.

Accepted Answer

Intermarket segmentation targets similar needs and buying behavior across different geographic markets. In this case, MTV targets teenagers in different countries, so it's an example of intermarket segmentation. Political and legal segmentation refers to dividing markets based on government regulations and laws, while cultural segmentation targets buyers with similar values, beliefs, and customs. Cross-cultural segmentation divides markets based on cultural differences, and individual segmentation targets specific customers based on their unique characteristics.

Question 12

Which type of segmentation centres on the use of the word when,such as when consumers get the idea to buy,when they actually make their purchase or when they use the purchased item?

Accepted Answer

This type of segmentation is known as occasion segmentation, which focuses on identifying the different occasions or situations when consumers make a purchase or use a product. This can be based on events like holidays or life stages like weddings, as well as more routine occasions like daily routines and specific needs. Therefore, option C is the correct choice as it specifically refers to the use of the word "when" to determine consumer behaviour.

Question 13

The International Drilling Company segments its foreign markets by the income levels of a country's population.This firm segments on what basis?

Accepted Answer

The International Drilling Company segments its foreign markets on the basis of income levels of a country's population, which falls under economic factors. This is a common way of segmenting markets, as income levels can influence consumer behavior and purchasing power.

Question 14

Shampoo marketers rate buyers as light,medium or heavy product users.This is ________ segmentation.

Accepted Answer

The segmentation described in the scenario is usage rate segmentation, which categorizes buyers based on the frequency or intensity of product use.

Question 15

Consumer and business marketers use many of the same variables to segment markets.Business marketers use all of the following EXCEPT which one?

Accepted Answer

Business marketers do not use brand personalities when segmenting markets, as they typically focus more on functional attributes and features of products/services rather than emotional appeals.

Question 16

Your current assignment at York Foods is to find the major benefits people look for in product classes,the kinds of people who look for each benefit and the major brands that deliver each benefit.What is this segmentation method called?

Accepted Answer

This segmentation method is called benefits sought, where customers are grouped based on the benefits or value they seek from a product or service. In this case, the assignment is to identify the major benefits people seek in product classes, the types of people who look for each benefit, and the major brands that deliver each benefit.

Question 17

Consumers can show their allegiance to brands,stores or companies.Marketers can use this information to segment consumers by ________.

Accepted Answer

Consumers who show allegiance to brands, stores or companies are indicating their loyalty status. Marketers can use this information to segment consumers based on how loyal they are to certain brands or stores. This can help them create more targeted and effective marketing campaigns to retain loyal customers and attract new ones.

Question 18

Many firms make an effort to identify smaller,better-defined target groups by using ________.

Accepted Answer

Multiple segmentation bases allow firms to identify smaller, more defined target groups by using different variables such as demographics, psychographics, behaviors, and needs. Using multiple segmentation bases helps companies tailor their marketing efforts to specific customer groups, increasing the effectiveness and efficiency of their campaigns. Additionally, loyalty segmentation and user rates are specific types of segmentation, while positioning and mass marketing are marketing concepts that do not directly relate to segmentation.

Question 19

The division of buyers into groups based on their social class,life-style or personality characteristics is ________ segmentation.

Accepted Answer

Psychographic segmentation involves dividing buyers based on their personality characteristics, values, interests, and lifestyle preferences. This type of segmentation is often used to create buyer personas and target specific groups of consumers with tailored marketing messages and product offerings that resonate with their unique psychographic profiles.

Question 20

By studying its less loyal buyers,a company can detect which brands are most ________ with its own.

Accepted Answer

By studying its less loyal buyers, a company can detect which brands are most competitive with its own.

Quiz 6: Customer-Driven Marketing Strategy: Creating Value for Target Customers