Question 1

Nike recently debuted King James XVII shoes (Lebron James)with a price tag of $200.The shoes arrived at shoe stores in a metallic silver briefcase instead of a shoebox.Nike is targeting a market it identifies as "keepers," people who buy the shoes,keep them under their bed,and when friends come over,show them the shoes.Selling to the market segment called "keepers" probably means that Nike is using which of the following types of buying situation variables to segment this market?
A)demographics
B)psychographics
C)awareness and intentions
D)behavioural

Accepted Answer

Behavioral segmentation is based on the consumer's behavior, such as past purchases or buying intentions. In this case, Nike is targeting a specific group of people who buy expensive shoes and keep them as collectibles. Therefore, Nike is using behavioral segmentation to segment this market. Demographic segmentation would focus on characteristics such as age or income, while psychographic segmentation would examine personality traits or lifestyle preferences. Awareness and intentions are not typically used as segmentation variables, but more as measures of consumer behavior.

Question 2

Mass customization is similar to ultra-customization,as the 80/20 rule is similar to ___________ consumer segmentation variable.
A)usage rate
B)psychographic
C)benefits sought
D)behaviour

Accepted Answer

The 80/20 rule states that 80% of a company's revenue comes from 20% of its customers. Similarly, usage rate is a consumer segmentation variable that identifies the frequency and amount of product usage by customers. Mass customization and ultra-customization also focus on understanding individual customers' needs and preferences to offer personalized products and services. Therefore, the usage rate is the most relevant variable among the given options.

Question 3

Which segmentation factor will members of a local hunting,fishing,and trapping association be characterized as?
A)Psychological variables.
B)Consumer behaviour.
C)Attitudes.
D)Psychographic variables.

Accepted Answer

Psychographic variables refer to the characteristics of individuals such as interests, values, and hobbies. Members of a hunting, fishing, and trapping association are likely to have shared interests in these activities, making psychographic variables the most appropriate segmentation factor to characterize them. Psychological variables, consumer behavior, and attitudes may also be relevant factors, but they are more general and do not specifically apply to this group's shared interests.

Question 4

Miller beer once called itself "the champagne of bottled beer," and ads showed elegant women in long white dresses sipping beer from crystal goblets.Then the company discovered that most beer is consumed by men 18 to 30 years of age,and it changed the thrust of its marketing message to reflect the more productive target market.What segmentation variable has it focused on with the newer approach?
A)benefits sought
B)usage rate
C)product awareness
D)buyer intentions

Accepted Answer

The segmentation variable focused on with the newer approach is usage rate, as the company shifted its marketing message to target the primary demographic group who consumes the most beer, which is men between 18 to 30 years of age.

Question 5

Nike recently debuted King James XVII shoes (Lebron James)with a price tag of $200.The shoes arrived at shoe stores in a metallic silver briefcase instead of a shoebox.Nike is targeting a market it identifies as "keepers," people who buy the shoes,keep them under their bed,and when friends come over,show them the shoes.Selling to the market segment called "keepers" probably means that Nike is using which of the following types of customer characteristic variables to segment this market?
A)demographics
B)psychographics
C)usage
D)benefits sought

Accepted Answer

Nike is targeting "keepers" based on their lifestyle and interests, which aligns with psychographic segmentation.

Question 6

Post Grape-Nuts cereal has been marketed since early 20^th century.Its market share has been steadily declining as consumers began associating it with something their grandfather ate.Post recently launched a campaign to increase consumption of the cereal by inviting consumers to try the crunchy cereal on top of their yogurt,their salad,or their bowl of soup as a delicious addition.Post was trying to convince people who had never tried the cereal to try,and people who were familiar with the product to use it in a variety of different ways.Post is using which segmentation variable to define its target market? A)usage B)demographic C)behaviour D)lifestyle

Accepted Answer

Post is using usage segmentation to define its target market. They are targeting people who have never tried the cereal before and people who are familiar with the product but may not have thought to use it in different ways. By targeting these specific usage situations, Post is hoping to increase consumption and appeal to a wider range of consumers.

Question 7

Many people are unaware that an individual can preplan his or her funeral so grieving relatives will not have to.Funeral homes trying to reach this market segment should use primarily _____ segmentation.
A)Psychographic
B)Geographic
C)Demographic
D)Behavioural

Accepted Answer

Psychographic segmentation focuses on the lifestyle, values, and attitudes of consumers, which is relevant for preplanning funerals as it involves personal beliefs and attitudes towards death and planning.

Question 8

Pepperidge Farm has developed new thick-sliced French Toast Swirl bread.The company realizes most people who eat toast for breakfast,see it as a side dish.Pepperidge Farm's ads advise consumers of this bread that this new product "doesn't go with breakfast.It is breakfast." Which segmentation variable is being used in this example?
A)behavioural
B)psychographic
C)demographics
D)family size

Accepted Answer

The segmentation variable used in this example is behavioural because Pepperidge Farm is targeting a specific behaviour (eating toast as a side dish) and trying to change it by positioning their product as a complete breakfast option.

Question 9

Many families today hold potluck meals during holidays or special events.Participants bring casseroles,vegetables,breads,and desserts and all share the food.It is easy to forget to take the bowl that you brought to the dinner back home with you.Reynolds responded to this problem by creating Pot Lux cookware,attractive and inexpensive disposable dishes for transporting food.Reynolds has recognized how to use ____ variables to segment its market.
A)user status
B)behavioural
C)demographics
D)family size

Accepted Answer

Potluck meals are a behavioral variable that can be used to segment the market. Reynolds has recognized this behavior and created a product to meet the needs of those who attend potluck events.

Question 10

Golden Gallon convenience stores sell Golden Gallon brand milk.Every time a customer purchases a gallon of this brand and gives the clerk his or her Golden Gallon card,the card is punched.When the customer has accumulated enough marks,then he or she gets a free gallon of milk.This is an example of segmentation by:
A)usage.
B)benefits offered.
C)demographics.
D)family size.

Accepted Answer

This is an example of usage-based segmentation, as customers are segmented based on their purchase behavior and frequency.

Question 11

Magazines like Fitness,Field & Stream,Golf Digest,and Health all use a _____ segmentation strategy.
A)demographic
B)psychographic
C)geographic
D)sociocultural

Accepted Answer

These magazines target audiences based on their interests and lifestyles, which is a psychographic segmentation strategy.

Question 12

Pearl Izumi offers three different lines of triathlon gear: Select,Elite,and Pro.Which segmentation characteristic would likely cause a beginner triathlete to purchase a product from the Pro line?
A)geographic
B)socioeconomic
C)behavioural
D)product knowledge

Accepted Answer

Behavioural segmentation is based on the behaviour of consumers, such as their purchase habits, usage patterns, and lifestyle. A beginner triathlete is likely to purchase a product from the Pro line because they are likely to be more serious about their training and racing, and therefore more likely to invest in higher-quality gear.

Question 13

Todd Harris and Associates,a New York sales promotion agency,discovered from analysis of its files that one-fifth of its clients accounted for more than three-quarters of its fees and commissions.This is an example of what classic concept?
A)the law of inverse proportions
B)the 80/20 rule
C)the survival of the fittest
D)the law of eminent domain

Accepted Answer

This is an example of the 80/20 rule, also known as the Pareto principle, which states that 80% of effects come from 20% of causes. In this case, 80% of the fees and commissions come from 20% of the clients.

Question 14

Many companies have cut travel budgets,so that very few business people are authorized to fly first class.Despite the shrinking pool of business-class travelers,British Airways (BA)has grown market share for its transatlantic 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.BA's strategy is an example of _________ segmentation.
A)life stage
B)lifestyle
C)industry sector
D)behavioural

Accepted Answer

BA's strategy of promoting the comfort and convenience of their business class seats to frequent fliers is an example of behavioral segmentation, as they are targeting customers based on their behavior and preferences in terms of travel comfort.

Question 15

The headline of the ad for the Sleep Number bed by Select Comfort read,"5 Reasons Why You'll Sleep Better on a Sleep Number Bed." From this information,you know that Select Comfort uses _____ segmentation.
A)behavioural
B)psychographic
C)demographic
D)socioeconomic

Accepted Answer

The fact that Select Comfort is using reasons why someone might sleep better on their bed suggests that they are using behavioural segmentation, targeting those who prioritize a good night's sleep.

Question 16

A local grocery store determines that the average consumer visits the store three times during a seven-day-period.What did the grocery store determine?
A)trial
B)inventor
C)usage rate
D)consumption rate

Accepted Answer

The grocery store determined the usage rate, which is the frequency with which customers use or visit a store or product.

Question 17

A national car rental firm targets 50 percent of its advertising to salespeople who travel more than 1,000 miles per week.Its market is segmented by:
A)usage.
B)benefits offered.
C)demographics.
D)family size.

Accepted Answer

The market is segmented based on the usage of the car rental service, specifically targeting salespeople who travel more than 1,000 miles per week.

Question 18

The slogan for General Foods International Coffee is "It Stirs the Soul." General Foods was trying to get customers to think about how drinking a cup of rich-flavoured coffee is indulgent.Based on that trademarked slogan,you should realize the product is using a _____ segmentation strategy.
A)geographic
B)socioeconomic
C)behavioural
D)product knowledge

Accepted Answer

The slogan "It Stirs the Soul" suggests that the product is trying to appeal to customers based on their behaviour or emotions rather than geographic or socioeconomic factors. This indicates a behavioural segmentation strategy, as the product is aimed at those who are looking for an indulgent coffee experience.

Question 19

A fast food chain has determined that for every $1 spent by a 'light user,' each 'heavy user' spends $5.Which statement best describes this situation?
A)Eighty percent of a firm's inventory should be readily available, and twenty percent should be reserved for emergency demand.
B)Eighty percent of a firm's first time users will become brand loyal and twenty percent of the firm's first time users will use the product only once.
C)Eighty percent of a firm's sales are obtained from twenty percent of its customers.
D)Eighty percent of a firm's expenditures are tax deductible and twenty percent are not.

Accepted Answer

This situation describes the Pareto Principle, also known as the 80/20 rule, which states that 80 percent of a firm's sales are obtained from 20 percent of its customers. The fact that heavy users spend five times more than light users reinforces this principle, showing that a small group of customers (the heavy users) contribute a disproportionately large amount to the firm's sales.

Question 20

Which of the following statements demonstrates the formation of a segment based on usage rate?
A)Campbell's soup makes spicier nacho cheese sauce for its distributors in Texas than it does in Maine.
B)GE built a downsized microwave oven to hang under kitchen cabinets.
C)Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners.
D)A fast food hamburger restaurant is open for breakfast on Sunday mornings but not on weekdays.

Accepted Answer

Usage rate segmentation involves dividing a market based on the frequency of product usage. The fast food restaurant being open for breakfast only on Sundays suggests targeting customers who are more likely to eat breakfast out on weekends, indicating segmentation based on usage rate.

Quiz 9: Market Segmentation, Targeting, and Positioning

Mass customization is similar to ultra-customization,as the 80/20 rule is similar to ___________ consumer segmentation variable.

Which segmentation factor will members of a local hunting,fishing,and trapping association be characterized as?

Many people are unaware that an individual can preplan his or her funeral so grieving relatives will not have to.Funeral homes trying to reach this market segment should use primarily _____ segmentation.

Magazines like Fitness,Field & Stream,Golf Digest,and Health all use a _____ segmentation strategy.

Pearl Izumi offers three different lines of triathlon gear: Select,Elite,and Pro.Which segmentation characteristic would likely cause a beginner triathlete to purchase a product from the Pro line?

Todd Harris and Associates,a New York sales promotion agency,discovered from analysis of its files that one-fifth of its clients accounted for more than three-quarters of its fees and commissions.This is an example of what classic concept?

The headline of the ad for the Sleep Number bed by Select Comfort read,"5 Reasons Why You'll Sleep Better on a Sleep Number Bed." From this information,you know that Select Comfort uses _____ segmentation.

A local grocery store determines that the average consumer visits the store three times during a seven-day-period.What did the grocery store determine?

A national car rental firm targets 50 percent of its advertising to salespeople who travel more than 1,000 miles per week.Its market is segmented by:

The slogan for General Foods International Coffee is "It Stirs the Soul." General Foods was trying to get customers to think about how drinking a cup of rich-flavoured coffee is indulgent.Based on that trademarked slogan,you should realize the product is using a _____ segmentation strategy.

A fast food chain has determined that for every $1 spent by a 'light user,' each 'heavy user' spends $5.Which statement best describes this situation?

Which of the following statements demonstrates the formation of a segment based on usage rate?