Question 1

The Hispanic American market is best treated as a single segment.

Accepted Answer

In many instances,the Hispanic American market is not one segment but several,so it should not be treated as a single segment.

Question 2

With respect to stage in the family life cycle,research has found that the overriding factor in describing subsegments is the presence of children in the house.

Accepted Answer

Research has found that the presence of children in the household is the overriding factor in describing subsegments within the family life cycle.

Question 3

Fisher-Price developed a line of toys for infants in China.Babies make up the market for these products.

Accepted Answer

Infants can't make purchases and,therefore,cannot be called a market.Their parents would constitute a market.

Question 4

A segmentation plan must produce segments that exhibit responsiveness,which means all segments response similarly to a marketing mix.

Accepted Answer

Responsiveness means one market segment responds to a marketing mix differently from other segments.

Question 5

Until the 1990s,few firms practiced market segmentation.

Accepted Answer

Firms practiced market segmentation after the 1960s.

Question 6

While it is important to understand potential business customers' buying processes,this is not a helpful segmentation basis.

Accepted Answer

Many business marketers find it helpful to segment customers and prospective customers on the basis of how they buy.

Question 7

Geodemographic segmentation combines geographic,demographic,and lifestyle segmentations.

Accepted Answer

Geodemographic segmentation combines multiple types of segmentation techniques, specifically geographic, demographic, and lifestyle factors, to group individuals into distinct market segments.

Question 8

A market segmentation study done by the University of Thessaly in Greece classified recreational skiers in terms of their gender,age,and educational levels.The study used psychographic segmentation variables.

Accepted Answer

These are examples of demographic segmentation variables.

Question 9

Fisher-Price is identifying Asian markets that are interested in their line of talking toys.Fisher-Price is engaged in the process of market segmentation.

Accepted Answer

Fisher-Price is dividing the overall market into smaller groups of consumers with similar needs or characteristics, which is the process of market segmentation.

Question 10

In market segmentation,individual psychographic variables can be combined with other variables to provide more detailed descriptions of market segments.

Accepted Answer

Combining psychographic variables with other variables such as demographics or behavior can lead to a more comprehensive and nuanced understanding of market segments.

Question 11

Clorox describes individuals who buy lots of cleaning products as heavy users.This is an example of how companies use benefit segmentation.

Accepted Answer

Usage-rate segmentation usually describes product usage with categories like heavy and light.

Question 12

A market segment is deemed to have substantiality if it contains a large number of potential customers.

Accepted Answer

Substantiality of a segment refers to a segment being large enough to warrant developing and maintaining a special marketing mix.This does not necessarily require large numbers of potential customers.

Question 13

The 80/20 principle implies that the majority of all demand is due to a minority of the customers.

Accepted Answer

The 80/20 principle, also known as the Pareto principle, states that roughly 80% of effects come from 20% of causes. In business, this can be applied to sales, where a majority of revenue comes from a minority of customers (often referred to as "key" or "VIP" customers).

Question 14

The business market consists of four broad segments: producers,resellers,governments,and regions.

Accepted Answer

The four segments are producers,resellers,governments,and institutions.

Question 15

The slogan used by GlaxoSmithKline,"Disease has no greater enemy" indicates the pharmaceutical company relies heavily on benefit segmentation variables.

Accepted Answer

The slogan emphasizes the company's focus on fighting diseases, which is a benefit that would be important to individuals who are suffering from illness. This indicates that GlaxoSmithKline is using benefit segmentation variables to target its marketing efforts towards this group of consumers.

Question 16

Geography,psychographics,and benefits sought are examples of possible segmentation variables used by marketers.

Accepted Answer

Geography, psychographics, and benefits sought are all common segmentation variables used by marketers to divide their target audience into specific groups based on characteristics, behavior, and needs.

Question 17

Company characteristics,such as geographic location,type of company,company size,and product use,can be important segmentation variables.

Accepted Answer

Company characteristics can be used to segment markets and target specific groups of customers based on factors such as location, industry, and company size.

Question 18

Clearing Skies Press published a book by Robert Ruark entitled Keeping the Baby Alive Till Your Wife Gets Home.It is an advice book for new fathers.The market for this books is based on demographics.

Accepted Answer

The book targets a specific group, new fathers, which is a demographic, making the statement true.

Question 19

U.S.paint manufacturers traditionally use different formulae for developing paint to be used in the humid Southeast,the frigid Midwest,and the hot and dry Southwest.This is an example of how demographic segmentation is used.

Accepted Answer

Regional marketing is an example of using geographic segmentation variables.

Question 20

The first step in segmenting a market is to choose a basis or bases for segmenting the markets.

Accepted Answer

The first step is to select a market or product category for study.

Quiz 8: Segmenting and Targeting Markets