Question 1

Pareto's Law suggests that 80% of a company's revenues or profits are accounted for by 20% of a firm's products or customers.

Accepted Answer

This statement accurately reflects Pareto's Law, also known as the 80/20 rule, which observes that a minority of inputs typically account for a majority of outputs in many systems, including in the business world.

Question 2

A market segment or country market characterized by weak competition may be a segment to avoid.

Accepted Answer

A market segment or country market characterized by weak competition may actually present an opportunity for growth and expansion. Weak competition could mean that there is a need or demand for a product or service that is not being fulfilled. However, it is important to conduct thorough research and analysis to ensure that the potential market is sustainable and profitable before entering it.

Question 3

Sweden's smaller population explains why IKEA,Saab,and Ericsson have looked beyond their borders for significant growth opportunities.

Accepted Answer

Yes, it is true. Sweden has a smaller population compared to many other countries, which means that companies like IKEA, Saab, and Ericsson have had to expand internationally to find significant growth opportunities.

Question 4

About two-thirds of world GNI is generated in the Triad countries,whereas only about 12% of the world's population is located in those countries.

Accepted Answer

This statement is true. The Triad countries (United States, European Union, and Japan) generate about two-thirds of the world's Gross National Income (GNI), despite only representing about 12% of the world's population.

Question 5

For some consumer products such as cigarettes,soft drinks,and candy that have a low per-unit cost,income is often a more valuable segmentation variable than population.

Accepted Answer

The answer of For some consumer products such as cigarettes,soft...

Question 6

Dove,a division of Unilever,traditionally targeted men and women with its Dove-branded skin care products.

Accepted Answer

Dove, a division of Unilever, has traditionally targeted women with its Dove-branded skin care products, focusing on real beauty and self-esteem. It was only later that Dove expanded its market to include products specifically designed for men with the launch of Dove Men+Care in 2010.

Question 7

India is the world's fastest growing cell phone market with the industry expanding at a rate of 50% annually with 5 million new subscribers added every month.This is an indication of continued private-sector growth.

Accepted Answer

The answer of India is the world's fastest growing cell...

Question 8

Global market segmentation is based on the premise that companies should attempt to identify consumers in different countries who share similar needs and desires.

Accepted Answer

Global market segmentation involves identifying and targeting consumers across different countries who share similar needs and preferences. This strategy recognizes that consumer behavior may vary based on factors such as culture, language, and geography. By segmenting the global market, companies can develop products and marketing messages that are tailored to the unique needs of different groups of consumers.

Question 9

The vast majority of India's population comprises a "bullock cart" segment whose households lack most comforts but typically owns a television.

Accepted Answer

The answer of The vast majority of India's population comprises...

Question 10

Global marketers must determine whether a standardized or an adapted marketing mix is required to best serve the wants and needs of the consumers.

Accepted Answer

Global marketers must consider whether a standardized marketing mix (same product, promotion, price, and place strategy across all markets) or an adapted marketing mix (customizing the strategy to fit the specific cultural, economic, and social factors of each market) is needed to effectively reach and appeal to consumers. This decision depends on factors such as the degree of cultural similarity or difference among markets, the level of competition, and the resources available for customization.

Question 11

Despite having comparable per capita incomes,other industrialized countries are nevertheless quite small in terms of total annual income.

Accepted Answer

This is because per capita income measures the average income per person, while total annual income measures the entire income of a country, regardless of the population size. Smaller countries with similar per capita incomes will have significantly lower total annual incomes compared to larger countries.

Question 12

Categories such as "successful idealists" and "affluent materialists" can be used to describe age segmentation.

Accepted Answer

The answer of Categories such as "successful idealists" and "affluent...

Question 13

When assessing potential country target markets,management should rely heavily on its network of contacts as a primary criterion for targeting.

Accepted Answer

While a network of contacts can be valuable for gaining insights and facilitating entry into a new market, relying heavily on it as a primary criterion for targeting may overlook critical factors such as market size, growth potential, competitive landscape, and regulatory environment. A comprehensive market analysis should be conducted to make informed decisions.

Question 14

Ideally,GDP and other measures of national income converted to U.S.dollars,should be calculated on the basis of purchasing power parities or through direct comparisons of actual prices for a given product.

Accepted Answer

This is because using exchange rates alone can lead to misleading conclusions about the relative size and strength of different economies. Purchasing power parities take into account the different prices of goods and services in different countries, allowing for a more accurate comparison of economic output.

Question 15

Sushi,Falafel,Tandoori Chicken or Pizza is in demand in many parts of the world.This phenomenon can be due to the pluralization of consumption and segment simultaneity.

Accepted Answer

Pluralization of consumption refers to the trend of individuals and communities seeking out diverse food choices, while segment simultaneity refers to the coexistence of different food preferences and demands in the same market. Sushi, Falafel, Tandoori Chicken, and Pizza are all examples of diverse food choices that are popular in many parts of the world, indicating the phenomenon of pluralization of consumption and segment simultaneity.

Question 16

One of the advantages of targeting a market segment globally is that although the segment in a single-country market might be small,even a narrow segment can be served profitably if the segment exists in several countries.

Accepted Answer

By targeting a market segment globally, a company can reach a larger customer base by serving the same segment in multiple countries. Even if the segment is small in a single-country market, it can still be profitable if it exists in several countries. This is because the combined potential customer base across multiple countries can be significant.

Question 17

Sometimes it is preferable to market to a particular age group rather than a mind-set;in such an instance psychographic studies can help marketers arrive at a deeper understanding of consumer behavior than is possible with traditional segmentation variables.

Accepted Answer

The answer of Sometimes it is preferable to market to...

Question 18

"Frugal Engineering" and "Reverse Innovation" are some of the terms that GE,Proctor & Gamble,Siemens,and Unilever are using to describe efforts to penetrate more deeply into emerging markets.

Accepted Answer

The statement accurately describes the use of terms like "Frugal Engineering" and "Reverse Innovation" by companies like GE, Proctor & Gamble, Siemens, and Unilever in their efforts to expand into emerging markets.

Question 19

For behavior segmentation,marketers use the 80 / 20 rule when assessing the consumers' usage rate,which means that 20% of the company's revenues or profits are accounted for by 80% of the firm's products or customers.

Accepted Answer

The 80/20 rule, or Pareto Principle, in the context of behavior segmentation suggests that 80% of a company's revenues or profits are accounted for by 20% of its customers, not its products.

Question 20

America's Hispanic population shares a common language,and so in ethnic segmentation they can be grouped as one segment.

Accepted Answer

While it is true that many Hispanic individuals share Spanish as a common language, the Hispanic population is not homogeneous and cannot be grouped as one segment. There are significant differences in cultural traditions, values, and behaviors among subgroups of the Hispanic population, such as Mexican Americans, Cuban Americans, Puerto Ricans, and others. Segmentation based solely on language can result in oversimplification and inaccurate targeting.

Quiz 7: Segmentation,targeting,and Positioning