Question 1

Which of the following constitutes a viable market segment?
A) A particular group of consumers who have varying preferences for products and services
B) A particular group of consumers of a single item who can be served profitably by a firm
C) A group of products and services that can be mass marketed profitably by a firm
D) A group of consumers with needs that can be seldom met by a single product item offered by a firm

Accepted Answer

A viable market segment is a group of consumers who have similar needs and characteristics, and who can be targeted by a firm in a profitable and efficient manner. Choice B states that the segment is made up of consumers of a single item who can be served profitably by a firm, which meets the criteria for a viable market segment. The other choices either describe groups with varying preferences or needs that cannot be met by a single item, which do not constitute viable market segments.

Question 2

Identify the approach in which the marketing manager decides on the appropriate basis for segmentation in advance of conducting a research study on a market.
A) A priori segmentation approach
B) Post hoc segmentation approach
C) Empirical approach
D) Psychographic approach

Accepted Answer

The approach in which the marketing manager decides on the appropriate basis for segmentation in advance of conducting a research study on a market is called a priori segmentation approach. This approach involves identifying and selecting segmentation bases before conducting any research on the market.

Question 3

Consumer attitudes, preferences, and benefits sought, which are determined through marketing research:
A) are commonly used as operational concepts for segmentation purposes.
B) are directly translated into theoretical concepts about target markets.
C) need not always be aligned with the organization's overall strategic objectives.
D) are unaffected by factors like development of new technology or nature of the industry.

Accepted Answer

Consumer attitudes, preferences, and benefits sought are commonly used as operational concepts for segmentation purposes, meaning they are used to divide the market into smaller, more specific groups that share similar characteristics and needs. This helps organizations better target their marketing efforts and tailor their products or services to meet the specific needs of each segment.

Question 4

Which of the following is the primary reason for studying consumer and organizational buyer behavior?
A) To understand employees' relationships with their organization
B) To determine the effectiveness of an organization's marketing department
C) To provide bases for effective market segmentation
D) To determine an organization's distinctive competencies

Accepted Answer

The primary reason for studying consumer and organizational buyer behavior is to provide bases for effective market segmentation. By understanding consumer and organizational behavior, marketers can better segment their target audience and create tailored marketing messages and strategies that effectively reach their intended audience. Understanding buyer behavior also helps marketers identify potential opportunities and threats in the marketplace.

Question 5

Which of the following statements is true of a firm's decision to "mass market" a product?
A) This decision considers a market segmentation analysis to be an optional requirement.
B) This decision should be reached only after a market segmentation analysis has been conducted.
C) This decision requires that a company select a target market first.
D) This decision can be reached only after the firm develops the marketing mix.

Accepted Answer

A mass marketing strategy involves targeting a broad group of consumers with a standardized marketing mix. Before making this decision, it is important for a firm to conduct a market segmentation analysis to determine if there are any subgroups within the market that may have different needs, preferences, or characteristics. Only after analyzing the market segments can a firm determine if a mass marketing approach is appropriate.

Question 6

When embarking on a new or modified marketing program, a company should conduct a(n) _____ first.
A) a priori segmentation analysis
B) mixed contingency analysis
C) complete situational analysis
D) vendor analysis

Accepted Answer

Conducting a complete situational analysis is the best approach when embarking on a new or modified marketing program. This involves analyzing the company's internal strengths and weaknesses, as well as external opportunities and threats in the market. This helps to ensure a thorough understanding of the current situation before developing and implementing a marketing strategy. Choices A, B, and D may still be important components of the marketing program, but they do not provide as comprehensive of an analysis as a situational analysis.

Question 7

The process of dividing a market into groups of similar consumers and selecting the most appropriate group(s) for the firm to serve is called _____.
A) test marketing
B) mass marketing
C) market segmentation
D) marketing communication

Accepted Answer

Market segmentation is the process of dividing a market into smaller groups of consumers with similar needs or characteristics. This allows the firm to tailor their marketing mix to better meet the specific needs and preferences of each segment, increasing the effectiveness of their marketing efforts. Test marketing is a method of launching a product in a limited geographical area to assess its potential success before rolling it out nationally or internationally. Mass marketing involves marketing to the entire market with a standardized product offering and marketing mix. Marketing communication refers to the various methods used to communicate with customers including advertising, sales promotions, public relations, direct marketing, personal selling, and digital marketing.

Question 8

In which of the following stages of the market segmentation process would a firm need to decide whether to use a post hoc or an a priori approach to segmenting a market?
A) Determining customer needs and wants
B) Delineating the firm's current situation
C) Dividing markets on relevant dimensions
D) Deciding a segmentation strategy

Accepted Answer

In the stage of dividing markets on relevant dimensions, a firm decides on the method of segmentation, choosing between post hoc (based on data analysis) or a priori (based on predefined criteria).

Question 9

Which of the following often brings about an investigation of consumer needs and wants for new or modified products and services?
A) Organizational objectives
B) Organizational portfolio
C) New technology
D) Production orientation

Accepted Answer

New technology often prompts organizations to investigate consumer needs and wants for new or modified products and services. As new technology enables new possibilities, organizations need to understand what consumers want and need in order to create and market successful products and services. Organizational objectives and portfolio may guide product development, but they may not necessarily prompt investigation into consumer needs and wants. Production orientation focuses on efficiency and cost reduction rather than meeting consumer needs and wants.

Question 10

Which of the following approaches for determining key market dimensions would be useful in the case of segmentation for entirely new products?
A) An 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 11

MicroBionics is a firm that manufactures digital hearing aids which, unlike analog hearing aids, can be programmed to mask out external noise. The company has determined that its competitive advantage lies in its product, while its weakness is the associated manufacturing costs. Target market opportunities exist within the maturing baby boomer segment. One challenge that the company faces is competing with another well-established brand called BelTone. In this case, which of the following steps in the market segmentation process has MicroBionics completed?
A) Development of the product positioning strategy
B) Delineation of the firm's current position
C) Division of the market on relevant segmentation variables
D) Design of the marketing mix strategy

Accepted Answer

MicroBionics has identified its competitive advantage and weakness, which indicates that it has delineated its current position in the market.

Question 12

In the process of market segmentation, determining customer needs and wants is immediately followed by:
A) dividing the organization's products into different product classes according to their features for sale through a mass marketing mechanism.
B) designing the appropriate marketing mix strategies to be used for each segment.
C) delineating the firm's current situation which aids in developing marketing mixes.
D) grouping consumers on the basis of one or more similarities and treated as a homogeneous segment of a heterogeneous total market.

Accepted Answer

The answer of In the process of market segmentation, determining...

Question 13

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

Accepted Answer

Garnet Inc. uses a post hoc segmentation approach, which involves collecting data (such as through surveys) and then analyzing it to identify distinct market segments based on customer responses.

Question 14

In the process of market segmentation, while determining consumer needs and wants, it is advisable for a company to:
A) forego undiscovered needs even if it possesses adequate venture capital to uncover them.
B) transcend the barriers that the industry places upon its range of need satisfaction activities.
C) use this step for the generation of theoretical strategies, rather than operational concepts.
D) modify or enhance offerings with relevant changes in technology for practical benefit.

Accepted Answer

In the process of market segmentation, it is advisable for a company to modify or enhance offerings with relevant changes in technology for practical benefit, based on the determined consumer needs and wants. This ensures that the company's offerings are relevant and appealing to its target market, which can ultimately lead to increased sales and profits. Foregoing undiscovered needs or using this step for theoretical strategies only may result in missed opportunities and subpar offerings, while transcending industry barriers may not always be feasible or necessary.

Question 15

Which of the following steps of the market segmentation process aids in determining objectives, opportunities, and constraints to be considered when selecting target markets and developing marketing mixes?
A) Delineating a firm's current situation
B) Designing the marketing mix
C) Developing product positioning
D) Deciding segmentation strategy

Accepted Answer

Delineating a firm's current situation helps in understanding the objectives, opportunities, and constraints that influence the selection of target markets and the development of marketing mixes. This step involves analyzing the company's internal and external environments to identify factors that can impact marketing strategies.

Question 16

ConiferCraft is a furniture firm that specializes in creating customized furniture for the commercial market. The firm has recently acquired a large amount of funds from investors and is looking to diversify by introducing customized products for the industrial market. The firm has completed a complete situation analysis for the purpose and the results are favorable. According to the market segmentation process model, the firm must next:
A) divide markets on relevant dimensions.
B) decide segmentation strategies.
C) develop product positioning strategies.
D) determine consumer needs and wants.

Accepted Answer

The answer of ConiferCraft is a furniture firm that specializes...

Question 17

The logic of market segmentation is based on the idea that _____ can seldom meet the needs and wants of all consumers.
A) marketers and sales people
B) marketing communication
C) an integrated marketing system
D) a single product item

Accepted Answer

A single product item cannot meet all the needs and wants of all consumers. Market segmentation recognizes that different customer groups may have different needs, preferences, and behaviors, so companies need to offer different product variations, marketing strategies, and communication to appeal to different segments.

Question 18

The group or market segment that a company selects to market to is called a _____.
A) differentiated market
B) customer profile
C) target market
D) business group

Accepted Answer

A target market is a specific group of consumers that a company aims to reach with its products or services. This group is selected based on various factors such as age, income, location, interests, etc. The company then tailors its marketing efforts to this target market in order to effectively reach and appeal to them. A differentiated market refers to a company offering different products or variations of a product to different market segments. A customer profile is a detailed description of a typical customer or target market. A business group is a general term referring to a group of businesses or companies.

Question 19

Which of the following statements about market segmentation is true?
A) According to the model of market segmentation analysis, the process usually begins with deciding the segmentation strategy to be used.
B) In the process of market segmentation, deciding the segmentation strategy precedes the determining the consumer needs and wants.
C) The logic of market segmentation is that a single product item can seldom meet the needs and wants of all consumers.
D) According to the model of market segmentation analysis, the process begins with designing the marketing mix strategy.

Accepted Answer

This statement is true. The logic of market segmentation is to identify and target specific groups of consumers with different needs and preferences, and then develop products and marketing strategies that cater to those specific needs. It recognizes that a single product or marketing approach is not effective in meeting the needs of all consumers. The process typically begins with identifying and evaluating different market segments before determining the best segmentation strategy to use.

Question 20

In the market segmentation process, delineation of a firm's current situation is followed by the determination of:
A) consumer needs and wants.
B) marketing mix strategies.
C) product positioning strategies.
D) relevant dimensions for market segmentation.

Accepted Answer

The answer of In the market segmentation process, delineation of...

Quiz 5: Market Segmentation

Which of the following constitutes a viable market segment?

Identify the approach in which the marketing manager decides on the appropriate basis for segmentation in advance of conducting a research study on a market.

Consumer attitudes, preferences, and benefits sought, which are determined through marketing research:

Which of the following is the primary reason for studying consumer and organizational buyer behavior?

Which of the following statements is true of a firm's decision to "mass market" a product?

When embarking on a new or modified marketing program, a company should conduct a(n) _____ first.

The process of dividing a market into groups of similar consumers and selecting the most appropriate group(s) for the firm to serve is called _____.

In which of the following stages of the market segmentation process would a firm need to decide whether to use a post hoc or an a priori approach to segmenting a market?

Which of the following often brings about an investigation of consumer needs and wants for new or modified products and services?

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

In the process of market segmentation, determining customer needs and wants is immediately followed by:

In the process of market segmentation, while determining consumer needs and wants, it is advisable for a company to:

Which of the following steps of the market segmentation process aids in determining objectives, opportunities, and constraints to be considered when selecting target markets and developing marketing mixes?

The logic of market segmentation is based on the idea that _____ can seldom meet the needs and wants of all consumers.

The group or market segment that a company selects to market to is called a _____.

Which of the following statements about market segmentation is true?

In the market segmentation process, delineation of a firm's current situation is followed by the determination of: