Question 1

In the seven-step approach, the basic comfort needs (heating and cooling, a good bed, a clean bathroom) and other needs like a telephone and safety/security are the qualifying needs, not the determining needs.

Accepted Answer

The basic comfort needs and other needs are qualifying needs, which means they are important to meet, but they are not the determining factor in whether a hotel is chosen or not.

Question 2

In the seven-step approach, submarkets are nicknamed based on the qualifying dimensions and a description of the customer types.

Accepted Answer

The answer of In the seven-step approach, submarkets are nicknamed...

Question 3

The seven-step approach to market segmentation does not estimate the size of each submarket until Step 7.

Accepted Answer

The seven-step approach to market segmentation involves identifying the potential bases for segmenting the market, developing segment profiles, evaluating alternative segments, selecting target markets, identifying possible positioning concepts, developing a marketing mix for each segment, and estimating the size of each submarket (in that order). Therefore, the size estimation does not occur until Step 7.

Question 4

Clustering techniques can be used in segmenting to help find similar patterns within sets of data-to identify homogeneous groups of people.

Accepted Answer

Clustering techniques are commonly used in data segmenting to group similar patterns together, which can be useful in identifying homogeneous groups of people.

Question 5

In the seven-step approach, submarkets are nicknamed based on the determining dimensions and a description of the customer types.

Accepted Answer

This statement is true. In the seven-step approach, submarkets are given nicknames based on the determining dimensions and a description of the customer types, such as "young urbanites" or "thrifty retirees".

Question 6

Clustering is a technique that divides a large group of people into smaller groups, so that each small group is as diverse as the large group from which it was formed.

Accepted Answer

Clustering is a technique that divides a large group of people or data points into smaller groups based on similarities. The goal of clustering is to create groups that are similar to each other, rather than diverse.

Question 7

CRM is a variation of the positioning approach.

Accepted Answer

CRM stands for Customer Relationship Management, which is a strategy for managing interactions and relationships with customers. It involves the use of technology, data analysis, and communication tools to improve customer satisfaction, loyalty, and retention. Positioning approach, on the other hand, refers to a marketing strategy that aims to create a unique identity or image for a brand or product in the minds of consumers. While both are important in marketing, they are not variations of each other.

Question 8

In the example for the 7-step approach (used in the text), it's useful to consider what people in each segment want, but it's useless to consider what they don't want because it will have no bearing on whether that segment is profitable for the firm.

Accepted Answer

Understanding what people in each segment don't want can help a firm avoid wasting resources on features or services that won't appeal to its target market, thereby improving profitability by focusing on what truly matters to its customers.

Question 9

In the example for the 7-step approach (discussed in the text), the "resort seekers" and the "executives" should be combined because both groups have high incomes.

Accepted Answer

The 7-step approach focuses on identifying and segmenting customers based on their needs and characteristics, not solely on income. While both "resort seekers" and "executives" may have high incomes, they may have different needs and behaviors that warrant separate targeting and messaging strategies.

Question 10

The seven-step approach encourages the use of a market grid (a rectangle with boxes inside) to represent smaller, more homogeneous submarkets.

Accepted Answer

The statement is true. The seven-step approach does encourage the use of a market grid to represent smaller, more homogeneous submarkets.

Question 11

In the example for the 7-step approach (discussed in the text), the "long-stay guests" and the "event-centered visitors" should be combined because both groups will likely be at the motel for an extended period of time.

Accepted Answer

The "long-stay guests" and the "event-centered visitors" should not be combined as they have different needs and stay durations. The long-stay guests are likely looking for a home away from home and require more amenities, while event-centered visitors are looking for convenient location and ease of access to the event.

Question 12

A firm is most likely to rely on customer relationship management (CRM) approaches when it does not have a database of information on individual customers.

Accepted Answer

A firm would be more likely to rely on CRM approaches when it has a database of information on individual customers, so that it can use that data to effectively manage and prioritize customer interactions and relationships. Without such a database, the firm may struggle to implement and benefit from CRM strategies.

Question 13

Computer-aided segmenting approaches eliminate the need for managerial judgment and intuition in selecting segmenting dimensions.

Accepted Answer

Computer-aided segmenting approaches can assist in the process of selecting segmenting dimensions, but they cannot completely eliminate the need for managerial judgment and intuition. Human input and interpretation are still necessary to ensure the chosen dimensions align with the company's goals and objectives.

Question 14

The seven-step approach to market segmentation does not consider whether a particular submarket can be profitable to the firm until Step 7.

Accepted Answer

The seven-step approach to market segmentation involves identifying customer needs, grouping customers into segments, and developing marketing strategies for each segment. The profitability of a particular submarket is not considered until the final step, when the firm evaluates the potential profitability of each segment and decides which segments to target.

Question 15

As shown in the discussion of the 7-step approach, determining dimensions may change over time.

Accepted Answer

Determining dimensions may change over time as new data and insights become available. This is why it is important to continuously review and update the dimensions used in analysis.

Question 16

The seven-step approach to market segmentation begins to consider whether a particular group can be profitable to the firm in Step 1-and that is a major consideration throughout all seven steps.

Accepted Answer

The seven-step approach to market segmentation typically starts with identifying the broad market or category your business intends to serve, not with profitability, which is considered but not as the primary focus in the initial step. Profitability is a crucial factor but is assessed more thoroughly in later steps after potential segments are identified and understood.

Question 17

Clustering techniques try to find similar patterns within sets of data.

Accepted Answer

Clustering techniques are used to group similar data points or patterns together based on their attributes, making it easier to analyze and understand large datasets.

Question 18

In the example for the 7-step approach (used in the text), it's important to consider what people in each segment do NOT want as well as what they do want.

Accepted Answer

It is important to consider the negative wants and needs of each segment in order to avoid offering them something that they don't want or need.

Question 19

As shown in the discussion of the 7-step approach, determining dimensions rarely change.

Accepted Answer

Determining dimensions can often change as they are influenced by the evolving scope of a project, new insights, or changes in requirements or constraints.

Question 20

In the example for the 7-step approach (discussed in the text), an important determining need for the "resort seekers" is adult fun while the "family vacationers" want family fun.

Accepted Answer

This statement accurately reflects the example discussed in the text regarding the 7-step approach and the needs of resort seekers versus family vacationers.

Quiz 4: Focusing Marketing Strategy With Segmentation and Positioning