Question 1

World Explorer Cruises advertises that it sells "Cruises for your mind,body,and soul.Even better,it comes in a pint-sized budget!" What kind of segmentation is the cruise line using?
A)Demographic segmentation
B)Mass market segmentation
C)Geographic segmentation
D)Benefit segmentation

Accepted Answer

The cruise line is using benefit segmentation by targeting consumers who are looking for a holistic experience for their mind, body, and soul, and advertising that it can be obtained within a small budget.

Question 2

_____ segmentation and benefit segmentation are two commonly used approaches for segmenting markets.
A)Psychographic
B)Situational
C)Profit
D)Mass marketing

Accepted Answer

Psychographic segmentation divides consumers into groups based on their personality traits, values, interests, and lifestyles. Benefit segmentation, on the other hand, divides consumers into groups based on the specific benefits they seek from a product or service. Both are commonly used approaches for segmenting markets. Situational segmentation refers to dividing consumers into groups based on their specific situation or context, while profit segmentation involves dividing consumers into groups based on their potential profitability to the company. Mass marketing, on the other hand, involves targeting a broad group of consumers with the same marketing message, without any particular segmentation.

Question 3

The belief underlying the _____ segmentation approach is that the advantages people are seeking in consuming a given product are the basic reasons for the existence of true market segments.
A)psychographic
B)geographic
C)benefit
D)demographic

Accepted Answer

The benefit segmentation approach segments the market based on the benefits or advantages that customers seek in consuming a product. This approach assumes that consumers prioritize specific benefits over others and are willing to pay a premium for them. Demographic segmentation categorizes consumers based on age, income, education, or other demographics. Geographic segmentation divides the market based on geographic boundaries or regions. Psychographic segmentation groups consumers based on their interests, beliefs, and values.

Question 4

A company is entering the deodorant market.Its marketing manager decides that the market should be divided on the basis of whether the consumers are nonusers,light users,or heavy users of deodorants.Which of the following approaches to segmentation is the company using?
A)A priori segmentation
B)Empirical segmentation
C)Post hoc segmentation
D)A posteriori segmentation

Accepted Answer

A priori segmentation involves dividing the market based on predetermined criteria, such as usage levels, before collecting data.

Question 5

Garnet Inc.is a manufacturing firm that primarily uses surveys to understand customers' attitudes,preferences,and benefits sought in a particular product category.Based on their responses,the firm groups them to form market segments.This implies that Garnet Inc.uses a _____ segmentation approach.
A)priori
B)post hoc
C)unconventional
D)empirical

Accepted Answer

Garnet Inc. uses a post hoc segmentation approach, as it groups customers into market segments based on their responses to surveys about attitudes, preferences, and benefits sought. This means the segmentation is done after collecting and analyzing the data, rather than starting with predefined segments.

Question 6

In the context of psychographic segmentation,what does "VALS" stand for?
A)Values and linkages
B)Values and lifestyles
C)Values and liabilities
D)Values and leverage

Accepted Answer

VALS stands for Values and Lifestyles. It is a psychographic segmentation tool that categorizes people based on their values, attitudes, and lifestyles. It helps businesses understand their customers better and create targeted marketing strategies.

Question 7

Chewies has been the favorite candy of many Southerners for years.The caramel,peanut,marshmallow,and chocolate confectionery is distributed through retail outlets in the South-Eastern regions of America.Its manufacturers recently started selling the candy through certain mail-order catalogs.Through previous research and experience,the marketing managers were able to use the _____ segmentation approach to gather information that would help determine the appropriate target groups for mail-order catalogs for Chewies.
A)a priori
B)a posteriori
C)post hoc
D)mass market

Accepted Answer

The a priori segmentation approach involves using pre-existing knowledge or hypotheses to segment the market. In this case, the marketing managers used previous research and experience to segment the market and identify target groups for their mail-order catalogs, fitting the description of a priori segmentation.

Question 8

_____ segmentation refers to a market segmentation approach in which people are grouped into segments on the basis of research findings,and then the size of each of these groups and their demographic and psychographic profiles are determined.
A)Post hoc
B)Empirical
C)Benefit
D)Psychographic

Accepted Answer

Post hoc segmentation involves grouping people based on research findings and then analyzing the size and characteristics of these groups.

Question 9

Altron Herbals is trying to market a new sunscreen lotion.In order to identify its target market segment,it has prepared a questionnaire that asks potential consumers about their lifestyles,especially their activities,interests,and opinions.Based on their answers,consumers will be grouped into separate categories.Which of the following market segmentation approaches has Altron used in this scenario?
A)A priori segmentation
B)Psychographic segmentation
C)Social segmentation
D)Geographic segmentation

Accepted Answer

Altron Herbals is using psychographic segmentation by collecting information about potential consumers' lifestyles, attitudes, interests, and opinions to group them into separate categories. This approach identifies consumers based on their personality, values, beliefs, and behavior, and is commonly used for products that are related to personal care, such as sunscreen lotion. A priori segmentation refers to grouping consumers based on predetermined categories, social segmentation considers social factors such as income, education, and occupation, and geographic segmentation divides consumers based on their location or region.

Question 10

Vet Meds is the pharmaceutical branch of a large medical research center for animals.Vet Meds often conducts surveys at veterinary hospitals and private vet clinics to identify potential areas for improvisation and growth.The company noted that many domestic pet owners reported finding it extremely difficult to give their dogs oral medication owing to the bitter taste of the medicines,which remained even when the medicines were mixed with food.In response to this finding,Vet Meds released oral medicines for dogs which came in various meat flavors.Which of the following segmentation approaches is used by Vet Meds to satisfy consumer needs?
A)Benefit segmentation
B)Psychographic segmentation
C)A priori segmentation
D)Social segmentation

Accepted Answer

Benefit segmentation involves identifying and targeting the specific benefits that customers seek from a product or service. In this case, Vet Meds identified that pet owners were struggling to give their dogs oral medication due to the bitter taste, and responded by creating meat-flavored medicines. This approach is focused on meeting the specific benefit that customers were seeking, making it an example of benefit segmentation.

Question 11

Which of the following is the most market-oriented approach to segmentation?
A)Segmentation based on social class
B)Segmentation based on different customer lifestyles and purchasing habits
C)Segmentation based on geographic area
D)Segmentation based on benefits that potential customers are seeking

Accepted Answer

Segmentation based on benefits that potential customers are seeking is the most market-oriented approach as it focuses on understanding the needs and wants of the customer and tailoring the marketing mix to meet those needs. This approach also allows for customization and personalization of products or services, which can lead to increased customer satisfaction and loyalty. Segmentation based on social class or geographic area may not accurately capture the needs and preferences of individual customers, while segmentation based on customer lifestyles and habits can be too broad and general.

Question 12

"The Greedy Hand" is a book on the U.S.income tax system.Its publisher has targeted people who hold Libertarian political beliefs and listen to conservative radio talk shows.The publisher has used _____ segmentation in this scenario.
A)mass market
B)post hoc
C)psychographic
D)geodemographic

Accepted Answer

The publisher has used psychographic segmentation, which divides a market into segments based on personality, values, interests, and lifestyles. In this scenario, the publisher has targeted people who hold Libertarian political beliefs and listen to conservative radio talk shows, which are psychographic characteristics.

Question 13

An entrepreneur has developed a self-service soda-bottling machine.Customers can fill their own plastic soda bottles with 18 regular and diet flavors.In order to decide where to place these machines,the entrepreneur conducts a research study to gauge the market and groups people into segments based on the research findings.This is an example of the _____ segmentation approach.
A)psychographic
B)a priori
C)mass market
D)post hoc

Accepted Answer

The entrepreneur is using research findings to group people into segments, which is characteristic of the post hoc segmentation approach.

Question 14

Benefit segmentation is a _____ approach.
A)technology-oriented
B)production-oriented
C)market-oriented
D)mass marketing

Accepted Answer

Benefit segmentation is a market-oriented approach where the market is segmented based on the benefits or values sought by the customers. It focuses on identifying and targeting customer segments that have similar wants and needs, rather than a mass marketing or production-oriented approach that targets a broad customer base with a standardized product or service. Technology-oriented approach focuses on developing and utilizing technology, while production-oriented approach focuses on maximizing production efficiency and reducing costs.

Question 15

In the context of bases for segmentation,which of the following is a difference between psychographic segmentation and benefit segmentation?
A)Psychographic segmentation attempts to measure consumer value systems,whereas benefit segmentation attempts to segment markets based on the degree to which consumers are innovative.
B)Psychographic segmentation focuses on consumer lifestyles,whereas benefit segmentation focuses on the advantages sought by the consumer.
C)Psychographic segmentation is clearly a market-oriented approach,whereas benefit segmentation is clearly a product-oriented approach.
D)Psychographic segmentation is used to keep track of any changes in a market that might affect marketing strategy,whereas benefit segmentation is used to better focus elements of the marketing mix.

Accepted Answer

The main difference between psychographic segmentation and benefit segmentation is that psychographic segmentation focuses on consumer lifestyles, attitudes, and values, whereas benefit segmentation focuses on the advantages or benefits sought by the consumer. Psychographic segmentation attempts to understand consumers based on their psychological characteristics, such as personality, values, attitudes, interests, and lifestyles. Benefit segmentation, on the other hand, groups consumers based on the specific benefits or advantages they seek from a product or service.

Question 16

Which of the following segmentation bases of consumer markets includes income?
A)Geographic
B)Behavior
C)Psychographic
D)Demographic

Accepted Answer

Income is a commonly used segmentation variable under the demographic bases of consumer markets, along with other variables such as age, gender, education, occupation, and family life cycle. Demographic characteristics are easily measurable and are strongly associated with consumer behavior, making it a popular option for marketers to segment their target audience.

Question 17

The best-known psychographic segmentation called _____,which was originally developed in the 1970s,explains and predicts consumer behavior.
A)AIO
B)VALS
C)ZIP
D)PRIZM

Accepted Answer

VALS (Values, Attitudes, and Lifestyles) is the best-known psychographic segmentation tool that was developed in the 1970s to explain and predict consumer behavior by categorizing consumers based on their values, attitudes, and lifestyles.

Question 18

Which of the following approaches for determining key market dimensions would be useful in the case of segmentation for entirely new products?
A)A priori approach
B)A post hoc approach
C)An empirical approach
D)A cross-functional approach

Accepted Answer

The answer of Which of the following approaches for determining...

Question 19

Which of the following criteria holds good for a priori approach and a post hoc approach?
A)The approach should be used depending on whether the firm is a market leader or follower.
B)The approach should depend on the vulnerability of a research group.
C)The approach should depend on how well the firm knows a market for a particular product class.
D)The approach should depend on the degree to which the product can harm consumers.

Accepted Answer

The criterion that holds good for choosing between a priori and post hoc approach is how well the firm knows a particular market for a product class. A priori approach is used when a firm has prior knowledge about the market, while a post hoc approach is used when a firm has limited or no knowledge about the market. The other criteria mentioned are irrelevant in deciding between the two approaches.

Question 20

How are consumer lifestyles measured during psychographic segmentation?
A)Consumers are asked about their health and known medical conditions.
B)Consumers are asked about their activities,interests,and opinions.
C)Consumers are asked to rate products in terms of the benefits they offer.
D)Consumers are asked to list the types of product features they want.

Accepted Answer

Consumer lifestyles are measured in psychographic segmentation by asking about their activities, interests, and opinions. This information provides insights into their values, beliefs, and attitudes, which can help in creating targeted marketing messages and product offerings that align with their preferences. Options A, C, and D are not directly related to measuring consumer lifestyles in psychographic segmentation.

Quiz 5: Market Segmentation

World Explorer Cruises advertises that it sells "Cruises for your mind,body,and soul.Even better,it comes in a pint-sized budget!" What kind of segmentation is the cruise line using?

_____ segmentation and benefit segmentation are two commonly used approaches for segmenting markets.

The belief underlying the _____ segmentation approach is that the advantages people are seeking in consuming a given product are the basic reasons for the existence of true market segments.

A company is entering the deodorant market.Its marketing manager decides that the market should be divided on the basis of whether the consumers are nonusers,light users,or heavy users of deodorants.Which of the following approaches to segmentation is the company using?

Garnet Inc.is a manufacturing firm that primarily uses surveys to understand customers' attitudes,preferences,and benefits sought in a particular product category.Based on their responses,the firm groups them to form market segments.This implies that Garnet Inc.uses a _____ segmentation approach.

In the context of psychographic segmentation,what does "VALS" stand for?

_____ segmentation refers to a market segmentation approach in which people are grouped into segments on the basis of research findings,and then the size of each of these groups and their demographic and psychographic profiles are determined.

Which of the following is the most market-oriented approach to segmentation?

"The Greedy Hand" is a book on the U.S.income tax system.Its publisher has targeted people who hold Libertarian political beliefs and listen to conservative radio talk shows.The publisher has used _____ segmentation in this scenario.

Benefit segmentation is a _____ approach.

In the context of bases for segmentation,which of the following is a difference between psychographic segmentation and benefit segmentation?

Which of the following segmentation bases of consumer markets includes income?

The best-known psychographic segmentation called _____,which was originally developed in the 1970s,explains and predicts consumer behavior.

Which of the following approaches for determining key market dimensions would be useful in the case of segmentation for entirely new products?

Which of the following criteria holds good for a priori approach and a post hoc approach?

How are consumer lifestyles measured during psychographic segmentation?