Question 1

Variables that are based on some objective physical (gender, ethnicity), measurable (age, income), or other classification attribute (occupation) of prospective customers are used in which segmentation base?

Accepted Answer

The segmentation base that is based on variables such as gender, ethnicity, age, and income is the demographic segmentation base. This base divides customers into groups based on objective and measurable attributes.

Question 2

Criteria for forming segments involve both similarities and differences. In terms of the needs of buyers, the similarities must be __________ a segment, and the differences must be __________ segments.

Accepted Answer

The similarities must be within a segment (referring to the common needs of the buyers in the segment), and the differences must be among segments (referring to how the needs of the buyers differ between segments).

Question 3

Universal Concerts wants to bring a series of music concerts to Canada next year. In general, western Canadians prefer country music while eastern Canadians prefer rock. In fact, a country music event in eastern Canada is very likely to have lots of empty seats. To maximize revenue, Universal Concerts should segment its Canadian market according to

Accepted Answer

The answer of Universal Concerts wants to bring a series...

Question 4

Region and city size are both variables used to employ __________ segmentation.

Accepted Answer

Geographic segmentation is used to divide a market based on geographic characteristics like region, city size, climate, and population density. Therefore, region and city size are both variables used in geographic segmentation.

Question 5

Which of the following is not a reason to segment a market?

Accepted Answer

If all buyers in a market have similar wants and needs, there would be no need to segment the market as there would be no meaningful differences between groups of buyers.

Question 6

Criteria for forming segments involve both similarities and differences. Which of the following statements is most accurate?

Accepted Answer

The most accurate statement is that within a segment, the needs of potential buyers should be similar, while among segments, the needs of buyers should be different. This is because segments are formed by identifying groups of buyers with similar needs and characteristics, so it wouldn't make sense for there to be significant differences in needs within a segment. However, the purpose of segmentation is to identify different groups of buyers with distinct needs and characteristics, so there should be differences between segments. Option A is incorrect because it suggests that needs within a segment should be different, which would make it difficult to effectively target and meet the needs of that segment. Option C is incorrect because it suggests that there should be no similarities between segments, whereas there may be some overlap in needs or characteristics. Option D is incorrect because it is too extreme and unrealistic to expect that all buyers will have identical needs. Option E is incorrect because some level of segmentation is usually necessary to effectively target and serve different groups of buyers.

Question 7

Segmentation based on where prospective customers live or work is referred to as

Accepted Answer

Geographic segmentation is based on where prospective customers live or work. It can involve dividing a market into regions (e.g. Northeast, Southwest) or more specific areas such as zip codes, cities, or even neighborhoods. Options C, D, and E are all forms of geographic segmentation, but B is the broader category that encompasses them all.

Question 8

Which of the following statements best illustrates geographic segmentation?

Accepted Answer

Geographic segmentation involves tailoring products or marketing efforts to specific geographic regions. Campbell's producing a hotter nacho cheese sauce in Texas and California is an example of geographic segmentation. The other options are examples of other types of segmentation (product, demographic, behavioral, and psychographic).

Question 9

More than half of all U.S. households are composed of only one or two persons, so Aunt Jemima offers one serving meals, such as its Ham & Egg Scramble and Oatmeal Pancakes. Aunt Jemima is using __________ as the basis to segment its market.

Accepted Answer

Aunt Jemima is using demographic characteristics (specifically household size) to segment its market.

Question 10

A marketing manager goes through several steps to put a market segmentation plan into effect. This includes being able to form market segments and then __________ without encountering excessive costs.

Accepted Answer

A marketing manager must be able to put a market segmentation plan into effect.This means identifying the characteristics of potential buyers in a market and then cost-effectively assigning them to a segment.

Question 11

Which of the following is not a criterion to use in forming market segments?

Accepted Answer

The cost to reach the segment exceeding its profitability is not a criterion to use in forming market segments. In fact, this would be a reason to not pursue that particular segment as it would not be financially viable. The other criteria listed, such as cost-effective and simple assignment of buyers to a segment, presence of significant similarities among buyers in the segment, and the existence of a potential marketing action to reach the segment are all important considerations in forming market segments. The ultimate goal of market segmentation is to increase market share or profit, making the second criterion listed also relevant.

Question 12

Grouping potential buyers into meaningful segments involves meeting some specific criteria that answer the following question:

Accepted Answer

The question specifically refers to criteria for grouping potential buyers into segments, and one of the criteria is whether segmentation would be worth doing and is possible. Therefore, the best choice is E. The other choices are not directly relevant to the question of segmentation.

Question 13

The best segmentation approach is the one that

Accepted Answer

Maximizing the opportunity for future profit and ROI is the best approach as it ensures that the segmentation strategy is aligned with the overall business objective of generating revenue and maximizing profitability. Additionally, this approach also considers the potential long-term benefits to the business, rather than focusing solely on short-term goals such as ease of reaching a segment or minimizing costs.

Question 14

Campbell Soup Co. found that its canned nacho cheese sauce, which could be heated and poured directly onto nacho chips, was too spicy for Americans in the East and not spicy enough for those in the West and Southwest. Today, Campbell's plants in Texas and California produce a spicier nacho cheese sauce than what is produced in the other plants. Campbell's is using __________ segmentation.

Accepted Answer

Campbell's is using geographic segmentation, which is dividing the market into different geographic units, such as regions, cities, or neighborhoods. In this case, the company is tailoring its product to meet the different taste preferences of consumers in different regions of the country.

Question 15

Which of the following is a criterion used in forming market segments?

Accepted Answer

The answer of Which of the following is a criterion...

Question 16

Selling a product to a different market segment usually requires a different marketing action that, in turn, means greater costs. If increased revenues don't offset extra costs of this action, a marketer should

Accepted Answer

The answer of Selling a product to a different market...

Question 17

Which of the following is a consumer market demographic segmentation variable?

Accepted Answer

Gender is a demographic segmentation variable that divides the market based on biological sex. Personality, usage rate, and needs are psychographic and behavioral segmentation variables, while region is a geographic segmentation variable.

Question 18

About 3 percent of the population has some degree of allergic reaction, usually mild, to preservatives used in salad bars. Restaurants might consider people with these allergies as a separate segment. To implement this segmentation strategy, restaurants would have to prepare a regular salad bar and a special salad bar for the allergies segment. This multiple product, multiple market segment strategy would have the greatest difficulty meeting which of the following criteria used to form market segments?

Accepted Answer

The answer of About 3 percent of the population has...

Question 19

Four general categories used to segment consumer markets are geographic segmentation, demographic segmentation, __________, and behavioral segmentation.

Accepted Answer

Psychographic segmentation is the fourth general category used to segment consumer markets, which is based on consumers' lifestyles, personalities, values, attitudes, and interests. It aims to understand consumers' psychological and emotional factors that drive their purchasing decisions, rather than solely focusing on their demographic or geographic characteristics.

Question 20

All of the following are criteria used for forming market segments except

Accepted Answer

The answer of All of the following are criteria used...

Quiz 9: Market Segmentation Targeting and Positioning

Variables that are based on some objective physical (gender, ethnicity) , measurable (age, income) , or other classification attribute (occupation) of prospective customers are used in which segmentation base?

Criteria for forming segments involve both similarities and differences. In terms of the needs of buyers, the similarities must be a segment, and the differences must be segments.