Question 1

It would not pay,for example,for an automobile manufacturer to develop cars especially for people whose height is greater than seven feet.

Accepted Answer

Developing cars for such a specific demographic would not be cost-effective as the market for these cars is likely to be too small to justify the expenses incurred in the development process.

Question 2

Your assignment at work is to divide buyers into different groups based on social class,lifestyle,and personality characteristics.After a planning session with the marketing and sales staff,you issue a memo to upper management recommending psychographic segmentation.You are right on target.

Accepted Answer

Psychographic segmentation involves dividing consumers based on their lifestyle, personality, and values, which is exactly what the scenario describes. The recommendation to use psychographic segmentation is appropriate for this type of market research.

Question 3

Your company wants to move away from mass marketing and engage in customer-driven marketing.The four steps to take,in order,are market segmentation,marketing positioning,differentiation,and targeting.

Accepted Answer

The correct order is market segmentation, targeting, differentiation, and then marketing positioning.

Question 4

At a recent marketing seminar,the featured speaker stated that a target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.This is a correct definition.

Accepted Answer

This is a correct definition of a target market. A target market is a specific group of consumers with similar needs or characteristics that a company focuses on serving through their products or services. Understanding and identifying the target market is crucial for developing effective marketing strategies.

Question 5

For simplicity's sake,most marketers generally limit their segmentation analysis to one or a few variables.

Accepted Answer

The answer of For simplicity's sake,most marketers generally limit their...

Question 6

Bombay Gifts divides its markets into units of nations,regions,and cities.Bombay uses geographic segmentation.

Accepted Answer

Bombay Gifts is using geographic segmentation by dividing its markets based on nations, regions, and cities.

Question 7

La Grange Florists segments markets into groups of nonusers,ex-users,potential users,first-time users,and regular users of its flowers and services.This firm uses usage rate as its segmentation approach.

Accepted Answer

The answer of La Grange Florists segments markets into groups...

Question 8

Because there is such variation among the economies of countries around the world,it is not practical to segment international markets on the basis of economic factors.

Accepted Answer

Economic factors are a fundamental basis for segmenting international markets because they directly influence consumers' purchasing power, preferences, and needs, which vary significantly across different economies.

Question 9

Developing a stronger position within several segments creates more total sales than undifferentiated marketing across all segments.

Accepted Answer

Developing a stronger position within several segments allows a company to better meet the specific needs and wants of each segment, leading to more sales overall compared to trying to appeal to all segments with a one-size-fits-all approach.

Question 10

Psychographic segmentation uses different marketing approaches for different time periods of people's lives and different family situations.

Accepted Answer

Psychographic segmentation focuses on dividing the market based on lifestyle, interests, values, and personality traits, not on time periods or family situations.

Question 11

Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger companies.

Accepted Answer

Niche marketing allows smaller companies to specialize in specific areas and cater to the unique needs or desires of a smaller market segment, potentially gaining a competitive advantage over larger companies that do not have the same level of focus.

Question 12

By going after the whole market instead of segments,companies can deliver just the right value proposition to each segment served and capture more value in return.

Accepted Answer

By going after the whole market, companies are not tailoring their value proposition to specific segments, which could lead to a mismatch between what the customer wants and what the company is offering. This could result in the company losing potential customers or not capturing as much value in return as they could by catering to specific segments.

Question 13

Clusters of marketable groups of customers with similar likes,dislikes,lifestyles,and purchase behaviours can be identified by multivariable segmentation systems that merge and analyze geographic,demographic,lifestyle,and behavioural data.

Accepted Answer

Multivariable segmentation systems do indeed use a combination of geographic, demographic, lifestyle, and behavioural data to identify clusters of customers with similar preferences and purchase behaviours.

Question 14

In evaluating different market segments,a firm should look at three factors: segment size and growth,segment structural attractiveness,and company objectives and resources.

Accepted Answer

These three factors are commonly used to evaluate market segments as they help a firm determine which segments are worth pursuing based on their size and growth potential, attractiveness in terms of competition and profitability, and how well they align with the company's goals and available resources.

Question 15

Research about and planning for loyalty status as a segmentation approach is generally not useful or practical for most firms.

Accepted Answer

Loyalty status can be a valuable segmentation approach for many firms, particularly those with a large customer base and frequent purchases. By identifying and rewarding loyal customers, firms can build long-term relationships and encourage repeat business. However, for smaller firms or those with less frequent purchases, loyalty status may not be as meaningful or practical as other segmentation approaches. Ultimately, the decision to use loyalty status as a segmentation approach will depend on the specific needs and goals of the firm.

Question 16

Today,most companies have moved back toward mass marketing and are being choosier about the customers with whom they wish to build relationships.

Accepted Answer

Most companies today are moving towards more targeted, personalized marketing strategies rather than mass marketing, focusing on building relationships with specific segments of customers who are most valuable to them.

Question 17

There are many exceptions to the geographic segmentation assumption that consumers in nations close to one another will have many common behaviours and traits.

Accepted Answer

While geographic segmentation can be a useful tool in marketing, there are many exceptions to the assumption that consumers in neighbouring nations will have many similarities in terms of their behaviours and preferences. Factors such as language, culture, religion, socioeconomic status, and historical events can all play a role in creating unique consumer segments within and across borders. Therefore, it is important for marketers to take a more nuanced approach to segmentation that considers these factors as well as more traditional geographic variables.

Question 18

Gender segmentation has long been used in clothing,cosmetics,toiletries,and magazines.

Accepted Answer

Gender segmentation has been a common marketing practice in various industries, including clothing, cosmetics, toiletries, and magazines. Companies target their products and advertising campaigns to specific genders, based on their preferences and needs.

Question 19

Shopping for the Rich and Famous is a buying service that helps wealthy clients find the best buys in exclusive clothing,high-end cars,travel,and financial services.This firm most likely uses income segmentation.

Accepted Answer

The company helps only wealthy clients with high-end products and services, indicating that it uses income segmentation.

Question 20

Although some large companies sell products in more than 200 countries,most international firms focus on a smaller set.

Accepted Answer

Most international firms focus on a smaller set of countries rather than selling products in more than 200 countries.

Quiz 8: Customer-Driven Marketing Strategy: Creating Value for Target Customers