Question 1

Market segmentation involves aggregating prospective buyers into groups that (1) will respond similarly to a marketing action and (2) 
A)respond similarly to marketing messages.
B)have common needs.
C)have similar shopping styles.
D)will become loyal customers.
E)will become repeat customers

Accepted Answer

Market segmentation is about identifying homogeneous groups that have similar needs and characteristics. These similarities allow marketers to design and implement marketing strategies that have a higher likelihood of success. While responses to marketing messages may differ among segments, the key is to group consumers based on common needs and characteristics first. The other options, such as shopping styles, loyal or repeat customers, are outcomes or implications of effective segmentation, but not the primary criterion for grouping consumers.

Question 2

The primary focus of Zappos' market segmentation strategy is
A)sell a huge selection of shoes to people who will buy them online.
B)sell a wide selection of leather shoes and boots to retailers.
C)sell all types of shoes, accessories, and clothing to department stores.
D)use organizational segmentation to sell accessories to consumers.
E)sell children's shoes to online retailers.

Accepted Answer

The statement "sell a huge selection of shoes to people who will buy them online" suggests that Zappos' market segmentation strategy focuses on a specific group of consumers who are likely to purchase shoes online. This implies that Zappos is using demographic segmentation based on online shopping behavior to target its customers.

Question 3

The phrase "relatively homogeneous collections of prospective buyers" is most descriptive of
A)demographic clusters.
B)organizational buyers.
C)ultimate consumers.
D)market segments.
E)qualified prospects.

Accepted Answer

The phrase "relatively homogeneous collections of prospective buyers" is most commonly associated with the concept of market segments, which refer to groups of consumers with similar needs, preferences, and characteristics. Demographic clusters (A) may be a part of the segmentation process, but they do not necessarily meet the criteria of homogeneity. Organizational buyers (B) are businesses and other institutions that purchase goods and services, but they do not fit the definition of "prospective buyers" in the same way that individual consumers do. Ultimate consumers (C) are individuals who purchase products or services for their own use, but this phrase does not specifically refer to the concept of homogeneous collections of buyers. Qualified prospects (E) are potential customers who have expressed some interest in a particular product or service, but again, this phrase does not fully capture the idea of market segmentation.

Question 4

To be identified as a market segment, its members must
A)represent a large share of the entire market and have critical buying power.
B)have common needs and respond similarly to market actions.
C)have different needs and have potential for future growth.
D)have different needs and respond similarly to market actions.
E)have potential for future growth and have potential for increased profit or return on investment.

Accepted Answer

A market segment is defined by members who have common needs and respond similarly to marketing actions, allowing for targeted marketing strategies.

Question 5

In marketing, each __________ consists of people who are relatively similar to each other in terms of their consumption behavior.
A)market segment
B)demographic cluster
C)organizational buyer
D)ultimate consumer
E)qualified prospect

Accepted Answer

A market segment refers to a group of individuals or organizations that share similar characteristics, such as demographics, behavior, or preferences. These similarities allow marketers to target their efforts towards specific groups that are more likely to be interested in their products or services. Therefore, a market segment consists of people who are relatively similar to each other in terms of their consumption behavior.

Question 6

Market segments refer to
A)the relatively heterogeneous group of prospective buyers that result from the market segmentation process.
B)the relatively homogenous group of prospective buyers that result from the market segmentation process.
C)the smallest unit of buyers that have similar needs but do not react similarly in a buying situation.
D)all buyers of a product or service who have previously purchased a particular firm's products or services and who intend to repeat that purchase sometime in the future.
E)all potential buyers of a product or service who intend to purchase a firm's products or services but who have not yet done so.

Accepted Answer

Market segments are the relatively homogenous group of prospective buyers that result from the market segmentation process. A market segment is a group of customers within a larger market who share similar characteristics that make them likely to respond in the same way to a marketing effort. By identifying and targeting specific market segments, firms can more effectively tailor their marketing mix to meet the needs and preferences of those customers.

Question 7

According to Tony Hsieh, CEO of Zappos, the greatest amount of time is spent
A)seeking out new and unusual styles of shoes from all over the world.
B)improving the Web site to make it faster, more interesting, and fun.
C)seeking out new markets that will go beyond the Internet.
D)finding the fastest and least expensive modes of delivery for their product.
E)finding new and improved ways to improve customer-service levels.

Accepted Answer

Tony Hsieh, CEO of Zappos, is known for placing a strong emphasis on customer service. Therefore, it is likely that the greatest amount of time is spent finding new and improved ways to improve customer-service levels.

Question 8

Market segmentation stresses __________ and relating needs and benefits to specific marketing actions.
A)grouping people randomly in a market
B)grouping people according to similar needs
C)splitting people randomly between markets
D)dividing people into the smallest groups possible
E)identifying potential new buyers who are not yet familiar with their product

Accepted Answer

Market segmentation involves dividing a larger market into smaller groups of consumers with similar needs and characteristics. This allows marketers to better understand and target these specific groups with marketing actions that relate to their needs and benefits. Randomly grouping people or dividing them into the smallest groups possible may not be effective or efficient for marketing strategies. Identifying potential new buyers is also important in marketing, but it is not the primary focus of market segmentation.

Question 9

Tony Hsieh, CEO of Zappos, offers $2,000 to anyone who
A)identifies a completely new market segment with a product to match it.
B)can find a way of improving service to on-line customers.
C)takes the loyalty training class and decides to quit anyway.
D)can find a shoe-related product that Zappos does not already carry.
E)create a theme for "Weirdo Wednesday" when company meetings are held.

Accepted Answer

Tony Hsieh offers $2,000 to employees who take the loyalty training class and decide to quit anyway, as part of Zappos' strategy to ensure that only those truly committed to the company's culture stay.

Question 10

Humility, humor, and honesty in relationships are all examples of Zappos' __________.
A)profile of the target market for teachers
B)profile of the target market for nurses
C)ten core values for Zappos employees
D)qualities required from Zappos suppliers
E)qualities required from Zappos retailers

Accepted Answer

The qualities mentioned (humility, humor, and honesty) are part of the ten core values that Zappos emphasizes for its employees. These core values also include delivering "wow" through service, embracing and driving change, and building positive team and family spirit. The other options (A, B, D, E) are not relevant to the qualities mentioned.

Question 11

The company name Zappos was chosen because
A)it was the founder's family name.
B)it conveyed in Spanish the type of product sold.
C)it inferred how quickly you could access the product.
D)it contained letters from the names of the three founders.
E)it reflected the brand name of the first line of shoes they sold.

Accepted Answer

The word Zappos is derived from the Spanish word "zapatos" which means "shoes". This name was chosen because the company originally started out as an online shoe retailer.

Question 12

Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as
A)consumer differentiation.
B)psychographics.
C)market segmentation.
D)market delineation.
E)aggregation marketing.

Accepted Answer

Market segmentation involves grouping potential buyers into segments based on shared characteristics such as demographics, behaviors, or needs. This allows marketers to tailor their message and marketing strategies to appeal to each specific segment, improving the effectiveness of their campaigns.

Question 13

Which of the following statements about Zappos is most accurate?
A)Zappos limits its inventory to an extensive selection of high end fashion footwear.
B)Zappos carries more than 1,000 different brands of shoes with over 3 million products.
C)Zappos can guarantee over-night shipping to all its customers because the customers know ahead of time they will be charged for express service.
D)Zappos is so successful because it has chosen a single mission "sell shoes and nothing else."
E)Zappos offers a 30/60/90 day return policy whereby refunds are based on how long you've had the shoes.

Accepted Answer

The statement that Zappos carries more than 1,000 different brands of shoes with over 3 million products is the most accurate. The other statements are either inaccurate or do not fully capture the breadth and depth of Zappos' business model.

Question 14

will respond similarly to a marking action is referred to as __________.
A)market diversification
B)market differentiation
C)market segmentation
D)market augmentation
E)repositioning

Accepted Answer

This is referring to the concept of market segmentation, where companies divide their total market into smaller groups of consumers with similar needs and characteristics. By understanding these differences, companies can customize their marketing strategies and products to better meet the needs of these specific segments. This can involve differentiation and repositioning, but the overall concept is segmentation.

Question 15

Market segmentation refers to
A)the philosophy that to do a truly excellent job of marketing a company should concentrate only on one segment of customers at a time.
B)aggregating prospective buyers into groups that have common needs but who respond differently to a marketing action.
C)aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.
D)aggregating prospective buyers into groups and creating or designing specific products that will satisfy their unique needs.
E)the belief that it is possible to satisfy every customer's needs if you can identify the correct segment in which they belong.

Accepted Answer

Market segmentation involves grouping prospective buyers into segments that have common needs and are likely to respond similarly to marketing actions.

Question 16

A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can
A)increase sales and profitability.
B)stand up to legal scrutiny.
C)be socially responsible.
D)create sustainable demand.
E)create innovation.

Accepted Answer

The primary objective of market segmentation is to identify and target profitable market segments that will increase sales and profitability. Therefore, the usefulness of market segmentation can be measured by tangible marketing actions that result in increased sales and profitability. While legal scrutiny, social responsibility, sustainable demand, and innovation are all important factors in the marketing process, they are not the primary objective of market segmentation.

Question 17

The purpose of market segmentation is to respond more effectively to the wants of groups of potential buyers in order to
A)maintain market share.
B)increase sales and profits.
C)assume social responsibility.
D)use the firms resources most efficiently.
E)provide the best quality products on the market.

Accepted Answer

Market segmentation helps companies identify specific groups of potential buyers and develop marketing strategies that are tailored to their needs and preferences. This can result in increased sales and profits by better meeting the demands of targeted customers.

Question 18

Product differentiation refers to
A)a marketing strategy whereby a firm selects to sell a product for which there is no direct competition and current substitutes.
B)a marketing strategy whereby a firm offers a service associated with a product rather than the product itself.
C)the term used to describe seemingly disparate products that can act as substitutes for one another creating indirect rather than direct competition.
D)the legal requirement that requires a specified degree of distinction between products to ensure that trademarks, brand names, and/or intellectual property are not being stolen or abused.
E)a marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products.

Accepted Answer

Product differentiation involves using various marketing mix activities (such as advertising, packaging, and pricing) to create a perception among consumers that a product is distinct and superior to competing products. This can help a firm to establish a competitive advantage and gain market share. Option A refers to a blue ocean strategy, while option B refers to bundling a product with a service. Option C refers to substitute products, and option D refers to intellectual property law.

Question 19

The relatively homogenous group of prospective buyers that result from the market segmentation process is referred to as a(n) __________.
A)market segment
B)target market
C)customer base
D)ultimate consumer
E)preferred customer

Accepted Answer

A market segment is a relatively homogenous group of prospective buyers that result from the market segmentation process.

Question 20

A marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products is referred to as __________.
A)prestige marketing
B)selective distribution
C)market differentiation
D)product discernment
E)product differentiation

Accepted Answer

Product differentiation is a marketing strategy in which a company creates a unique product or service that sets it apart from competitors in the eyes of target consumers. This can be achieved through a variety of marketing mix activities such as product design, features, branding, packaging, pricing, promotion, and distribution. By creating a perceived difference and value proposition for the product, the company hopes to attract and retain customers who are willing to pay a premium price and become loyal advocates.

Quiz 9: Market Segmentation, Targeting, and Positioning

Market segmentation involves aggregating prospective buyers into groups that (1) will respond similarly to a marketing action and (2)

The primary focus of Zappos' market segmentation strategy is

The phrase "relatively homogeneous collections of prospective buyers" is most descriptive of

To be identified as a market segment, its members must

In marketing, each __________ consists of people who are relatively similar to each other in terms of their consumption behavior.

Market segments refer to

According to Tony Hsieh, CEO of Zappos, the greatest amount of time is spent

Market segmentation stresses __________ and relating needs and benefits to specific marketing actions.

Tony Hsieh, CEO of Zappos, offers $2,000 to anyone who

Humility, humor, and honesty in relationships are all examples of Zappos' __________.

The company name Zappos was chosen because

Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as

Which of the following statements about Zappos is most accurate?

will respond similarly to a marking action is referred to as __________.

Market segmentation refers to

A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can

The purpose of market segmentation is to respond more effectively to the wants of groups of potential buyers in order to

Product differentiation refers to

The relatively homogenous group of prospective buyers that result from the market segmentation process is referred to as a(n) __________.

A marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products is referred to as __________.