Question 1

Airlines have developed frequent-flyer programs to encourage passengers to use the same airline repeatedly.This marketing strategy is based on
A)geographic segmentation.
B)behavioral segmentation.
C)psychographic segmentation.
D)demographic segmentation.
E)buying condition segmentation.

Accepted Answer

Airlines have developed frequent-flyer programs to encourage passengers to use the same airline repeatedly to create loyal customers.This technique,sometimes called frequency marketing,is a strategy that focuses on usage rate,a type of behavioral segmentation.

Question 2

Which of the following is a basis used to segment U.S.organizational markets?
A)geographic
B)psychographic
C)income
D)prospects
E)education

Accepted Answer

The segmentation bases for U.S.organizational markets include geographic,demographic,and behavioral.

Question 3

The quantity consumed or patronage (store visits)during a specific period is referred to as
A)usage rate.
B)purchase metric.
C)consumption index.
D)consumption rate.
E)demand amount.

Accepted Answer

Key term definition-usage rate.

Question 4

Many companies have cut travel budgets so that fewer businesspeople are authorized to fly first class.Despite the shrinking pool of business-class travelers,British Airways has grown market share for its trans-Atlantic business class by offering greater comfort.Promotions to frequent fliers stress that passengers can sleep in fully reclining seats and arrive refreshed to carry out a full day's schedule.The segmentation strategy of British Airways is an example of
A)life stage segmentation.
B)geographic segmentation.
C)social class segmentation.
D)behavioral segmentation.
E)psychographic segmentation.

Accepted Answer

British Airways is using behavioral segmentation (benefits the prospective customers seek)to sell airline tickets to frequent fliers who value comfort and wish to sleep on a trans-Atlantic flight.

Question 5

Todd Harris and Associates,a New York sales promotion agency,discovered from an analysis of its files that one-quarter (or 25 percent)of its clients generated more than three-quarters (or 75 percent)of its fees and commissions.This is an example of what classic concept?
A)the two quarter gap
B)the 80/20 rule
C)the law of usage
D)the 75/25 exchange
E)Paget's Law

Accepted Answer

The 80/20 rule is a concept that suggests 80 percent of a firm's sales are obtained from 20 percent of its customers.

Question 6

Airline programs that encourage passengers to repeatedly use the same airline focus on usage rate and employ a(n)________ strategy.
A)rate of recurrence
B)product utilization
C)incidence
D)frequency marketing
E)consumption index

Accepted Answer

Airlines have developed frequent-flyer programs to encourage passengers to use the same airline repeatedly to create loyal customers.This technique,sometimes called frequency marketing,is a strategy that focuses on usage rate.

Question 7

The 80/20 rule is most closely related to which basis of segmentation?
A)geographic
B)psychographic
C)opportunistic
D)demographic
E)behavioral

Accepted Answer

The 80/20 rule is a concept that suggests 80 percent of a firm's sales are obtained from 20 percent of its customers.This is related to usage rate,a common behavior segmentation variable.

Question 8

The 80/20 rule suggests that
A)80 percent of a firm's inventory should be readily available while 20 percent should be reserved for emergency demand.
B)80 percent of a firm's first-time users will become brand loyal while 20 percent will use the product only once and then abandon it.
C)80 percent of a firm's sales are obtained from 20 percent of its customers.
D)80 percent of a firm's marketing program expenses are tax deductible while 20 percent are not.
E)80 percent of a firm's products will be sold to ultimate consumers while 20 percent to organizational buyers.

Accepted Answer

Key term definition-80/20 rule.

Question 9

ExxonMobil targets consumers that fill up their gas tanks more than once a week with its Chase Visa fuel card.Here,ExxonMobil is using which segmentation variable?
A)needs
B)lifestyle
C)behavioral
D)psychographic
E)demographic

Accepted Answer

Behavioral segmentation is based on some observable actions or attitudes by prospective customers,such as where they buy,what benefits they seek,how frequently they buy,and why they buy.

Question 10

A study by the Aberdeen Group analyzed which segmentation bases were used by the 20 percent most profitable organizations of the 220 surveyed.Which segmentation base did these organizations use the most?
A)behavioral
B)psychographic
C)geographic
D)demographic
E)product

Accepted Answer

The Aberdeen Group analyzed which segmentation bases were used by the 20 percent most profitable organizations of the 220 surveyed.From highest to lowest,the segmentation bases were: geographic (88 percent),behavioral (65 percent),demographic (53 percent),and psychographic (43 percent).

Question 11

The market segmentation strategy known as frequency marketing focuses on
A)trial.
B)the average number of times a person in the target audience is exposed to an advertisement.
C)consumption preferences.
D)turnover.
E)usage rate.

Accepted Answer

Key term definition-frequency marketing.

Question 12

Usage rate refers to
A)the percentage of total possible users divided by the total number of consumers who actually use a product or service.
B)the number of times a customer uses or recommends a product or service annually.
C)quantity consumed or patronage (store visits)during a specific period.
D)the maximum number of times a customer has used a product or service historically.
E)the profits a firm earns from customers who consume a particular product or service.

Accepted Answer

Key term definition-usage rate.

Question 13

Behavioral segmentation may be based on
A)lifestyles and demographics.
B)retailer and wholesaler behaviors.
C)geographic and demographic criteria.
D)product features and user status.
E)demand and supply.

Accepted Answer

Behavioral segmentation is based on observable actions or attitudes of prospective customers,such as where they buy,what benefits they seek,how frequently they buy (user status),and why they buy.

Question 14

Alamo,a national car rental firm,targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year.The company is using ________ segmentation.
A)geographic
B)demographic
C)loyalty
D)psychographic
E)behavioral

Accepted Answer

Usage rate and user status are both behavioral segmentation variables.In this case,salespersons who rent a car are "heavy users" and "over 40 weeks per year" is a measure of usage rate.

Question 15

Samsung sells a variety of TVs,from simple and small ones to large smart TVs with Internet connectivity and 3-D technology.Customers prefer different features,so Samsung uses which type of segmentation variable based on their viewing preferences?
A)demographic segmentation
B)psychographic segmentation
C)behavioral segmentation
D)geographic segmentation
E)socioeconomic segmentation

Accepted Answer

Understanding what product features are important to different customers is a useful way to segment markets because it can lead directly to specific marketing actions.Samsung uses behavioral segmentation to guide the types of TVs it sells since different consumers seek different product features/benefits in a TV.

Question 16

As an owner of a Wendy's fast-food restaurant located near a large urban university,you need to analyze your customers and determine which segmentation base and its associated variable(s)you will use to segment your target market.Which segmentation base and associated variable(s)should you use?
A)psychographic: VALS and personality
B)demographic: gender and age
C)behavioral: students and nonstudents
D)geographic: city size and zip code
E)transportation mode: car,bike,public transportation,and none (walking)

Accepted Answer

To analyze your Wendy's customers,you need to identify which variables to use to segment them.Because the restaurant is located near a large urban university,the most logical starting point for segmentation is really behavioral.Are the prospective customers students or nonstudents?

Question 17

Massage Envy offers massage services on a subscription basis,so it targets consumers that desire to get multiple treatments per month.Massage Envy likely segments its market by
A)usage rate.
B)benefits offered.
C)demographics.
D)geography.
E)lifestyle.

Accepted Answer

In this case,rate of use is defined as "more than once per month." Therefore,Massage Envy uses behavioral segmentation as the basis and usage rate as the segmentation variable.

Question 18

College dorm residents frequently want to keep and prepare their own food and snacks to save money or have a late-night snack.However,their dorm rooms are often woefully short of space.MicroFridge understands this and markets a combination microwave,refrigerator,freezer,smoke sensor,and charging station appliance targeted to these students.MicroFridge is most likely using which basis of segmentation?
A)sociocultural segmentation
B)psychographic segmentation
C)geographic segmentation
D)behavioral segmentation
E)socioeconomic segmentation

Accepted Answer

Understanding what product features are important to different customers is a useful way to segment markets because it can lead directly to specific marketing actions,such as a new product,an ad campaign,or a distribution channel.This is a form of behavioral segmentation.

Question 19

Variables such as statistical area,the North American Industry Classification System (NAICS)code,and usage rate are all examples of ways to
A)differentiate products.
B)forecast sales to a consumer market.
C)segment an organizational market.
D)promote NAFTA.
E)segment a consumer market.

Accepted Answer

Variables for segmenting organizational markets include geographic (statistical area),demographic (NAICS code),and behavioral (usage rate)segmentation bases.

Question 20

Which of the following statements about market segmentation for organizational markets is most accurate?
A)Criteria for segmenting markets are the same whether the market is composed of consumers or organizations.
B)Both consumer markets and organizational markets use demographic,geographic,and behavioral bases to segment markets.
C)Psychographic criteria are just as important in segmenting organizational markets as they are in segmenting consumer markets.
D)Consumer markets use market segmentation criteria while organizational markets do not.
E)The greatest difference in market segmentation strategies between consumer and organizational markets is the number of employees employed in the segmentation process.

Accepted Answer

Variables for segmenting organizational markets include geographic,demographic,and behavioral segmentation bases.These bases are also used to segment consumer markets,though the variables themselves may differ.

Quiz 9: Market Segmentation, targeting, and Positioning

Airlines have developed frequent-flyer programs to encourage passengers to use the same airline repeatedly.This marketing strategy is based on

Which of the following is a basis used to segment U.S.organizational markets?

The quantity consumed or patronage (store visits) during a specific period is referred to as

Todd Harris and Associates,a New York sales promotion agency,discovered from an analysis of its files that one-quarter (or 25 percent) of its clients generated more than three-quarters (or 75 percent) of its fees and commissions.This is an example of what classic concept?

Airline programs that encourage passengers to repeatedly use the same airline focus on usage rate and employ a(n) ________ strategy.

The 80/20 rule is most closely related to which basis of segmentation?

The 80/20 rule suggests that

ExxonMobil targets consumers that fill up their gas tanks more than once a week with its Chase Visa fuel card.Here,ExxonMobil is using which segmentation variable?

A study by the Aberdeen Group analyzed which segmentation bases were used by the 20 percent most profitable organizations of the 220 surveyed.Which segmentation base did these organizations use the most?

The market segmentation strategy known as frequency marketing focuses on

Usage rate refers to

Behavioral segmentation may be based on

Alamo,a national car rental firm,targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year.The company is using ________ segmentation.

Samsung sells a variety of TVs,from simple and small ones to large smart TVs with Internet connectivity and 3-D technology.Customers prefer different features,so Samsung uses which type of segmentation variable based on their viewing preferences?

As an owner of a Wendy's fast-food restaurant located near a large urban university,you need to analyze your customers and determine which segmentation base and its associated variable(s) you will use to segment your target market.Which segmentation base and associated variable(s) should you use?

Massage Envy offers massage services on a subscription basis,so it targets consumers that desire to get multiple treatments per month.Massage Envy likely segments its market by

Variables such as statistical area,the North American Industry Classification System (NAICS) code,and usage rate are all examples of ways to

Which of the following statements about market segmentation for organizational markets is most accurate?