Question 1

Geodemographic segmentation can be particularly useful for __________,because customers typically patronize stores close to their neighborhood.
A) Internet marketers
B) wholesalers
C) retailers
D) consumer goods manufacturers
E) cable TV networks

Accepted Answer

Geodemographic segmentation is especially useful for retailers because it allows them to target specific groups of customers based on their location, lifestyle, and demographic characteristics. This is important for retailers because customers typically shop at stores that are close to their neighborhood, and geodemographic segmentation helps retailers identify the specific neighborhoods and areas that are most likely to be receptive to their marketing efforts. This can help retailers tailor their marketing messages and promotions to these specific segments, which can increase their sales and profitability.

Question 2

When Ron complained to his bank about the unprofessional behavior of one teller,the branch manager added a code into his accounts alerting all tellers that Ron was a valued customer and to provide whatever service he requests.The branch management included Ron in its __________ segmentation.
A) benefit
B) geodemographic
C) psychographic
D) loyalty
E) geographic

Accepted Answer

The branch manager including Ron in a distinct code alerting tellers to provide exemplary service suggests that Ron has displayed loyal behavior with the bank. Therefore, Ron is included in the loyalty segmentation.

Question 3

Retail store chains often use __________ data to tailor each store's assortment to the preferences of the local community.
A) geodemographic
B) benefit
C) psychographic
D) loyalty
E) geographic

Accepted Answer

Geodemographic data refers to the use of demographic and geographic information to better understand the characteristics and preferences of a local community. This information can be used by retailers to tailor their product offerings to meet the specific needs and tastes of the local population, thereby increasing the likelihood of sales and customer satisfaction.

Question 4

Carlos has identified four potential market segments for his Rent-A-Nurse service.He will now compare the segments to see if they are distinct from each other.Carlos is evaluating whether or not each segment is
A) identifiable.
B) responsive.
C) profitable.
D) reachable.
E) substantial.

Accepted Answer

The answer of Carlos has identified four potential market segments...

Question 5

Marketers often employ a combination of segmentation methods,using __________ to identify and target their customers,and __________ to design products and messages to appeal to them.
A) loyalty segmentation; demographics
B) undifferentiated targeting; differentiated targeting
C) loyalty segmentation; geodemographics
D) demographics and geography; lifestyle or benefit segmentation
E) lifestyle segmentation; geographic segmentation

Accepted Answer

The question is asking about the methods marketers use for segmentation and targeting. The best answer choice is D, as it correctly identifies the two main methods: demographics and geography are used to identify and target customers, while lifestyle or benefit segmentation is used to design products and messages that will appeal to them. Choice A (loyalty segmentation and demographics) is incorrect because loyalty segmentation is not a common practice, and demographics alone are not sufficient for creating effective marketing strategies. Choice B (undifferentiated targeting and differentiated targeting) is incorrect because it does not mention segmentation methods at all. Choice C (loyalty segmentation and geodemographics) is incorrect because geodemographics are just one type of demographic data, and loyalty segmentation is not commonly used. Choice E (lifestyle segmentation and geographic segmentation) is incorrect because it does not mention demographics, which are an important factor in segmentation.

Question 6

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service.She will now evaluate whether or not each segment is attractive relative to all of the following except
A) substantial.
B) responsive.
C) profitable.
D) reachable.
E) realistic.

Accepted Answer

The question states that Karen will evaluate each segment's attractiveness relative to all of the mentioned factors except for "realistic". Therefore, the answer is E.

Question 7

For a segmentation strategy to be successful,the customers in the segment must react similarly and positively to the firm's marketing mix.In other words,the market segment must be
A) substantial.
B) perceptive.
C) identifiable.
D) reachable.
E) responsive.

Accepted Answer

A successful segmentation strategy requires customers in the segment to respond similarly and positively to the firm's marketing mix. Responsiveness is therefore key to determining the effectiveness of a segmentation strategy. While other factors like the segment being substantial, identifiable, reachable, and perceptive are important, they do not guarantee a successful strategy if the customers in the segment do not react positively to the marketing mix.

Question 8

One of the reasons marketers use loyalty segmentation is
A) the high cost of finding new customers.
B) government tax incentives.
C) accounting difficulties associated with identifying new customers.
D) rapid population increases.
E) the failure of micromarketing as a workable strategy.

Accepted Answer

Loyalty segmentation focuses on identifying and targeting customers who already have a relationship with the brand, in order to retain their business and increase their lifetime value. It is often more cost-effective to retain existing customers than to acquire new ones, as the cost of advertising and marketing to new customers can be high. Therefore, one of the main reasons marketers use loyalty segmentation is because of the high cost of finding new customers.

Question 9

Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power.Greta is concerned with whether the segment is
A) substantial.
B) responsive.
C) profitable.
D) reachable.
E) identifiable.

Accepted Answer

Greta's concern about the market segment being too small and having too little income to have sufficient buying power directly relates to whether the segment is substantial. A substantial market segment is one that is large enough and has enough purchasing power to be profitable.

Question 10

With access to the Internet nearly universal in the United States,many potential market segments have become more
A) substantial.
B) perceptive.
C) identifiable.
D) reachable.
E) quantifiable.

Accepted Answer

With universal access to the Internet, it has become easier to reach potential market segments through online advertising and targeted social media campaigns.

Question 11

College students can be a less __________ market segment because students' media habits are quite diverse and firms might have to use a wide variety of media to attract this segment.
A) substantial
B) perceptive
C) identifiable
D) reachable
E) quantifiable

Accepted Answer

College students are a less reachable market segment because they consume media from various sources, and it's challenging to target them through a single advertising medium.

Question 12

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service.The next step is to
A) categorize each market segment by consumer demographics.
B) establish her overall objectives.
C) decide on a targeting strategy.
D) develop a positioning strategy.
E) evaluate the attractiveness of each segment.

Accepted Answer

Before deciding on a targeting or positioning strategy, it is important to evaluate the attractiveness of each potential market segment based on factors such as size, growth potential, competition, and compatibility with the business's capabilities and resources. This will help Karen prioritize her efforts and invest her resources in the most promising segments.

Question 13

Airlines were among the first retailers to embrace loyalty segmentation when they created
A) business-class seating.
B) 30-day advance pricing.
C) fuel surcharges.
D) in-flight movies.
E) frequent-flyer programs.

Accepted Answer

Frequent-flyer programs were created as a form of loyalty segmentation, offering rewards and perks to customers who flew with a specific airline frequently. This allowed airlines to differentiate between their most loyal customers and those who only flew occasionally, and provide targeted marketing and incentives to retain those loyal customers.

Question 14

Marketers often create a special marketing mix for loyalty segments because these segments are
A) too large to service with ordinary targeting.
B) difficult to identify.
C) costly to acquire.
D) generally profitable.
E) constantly changing.

Accepted Answer

Loyalty segments represent customers who have already shown a preference for a brand or company, and therefore are more likely to make repeat purchases and generate revenue over time. Marketers focus on these segments by creating a customized marketing mix that addresses their unique needs and desires, such as special promotions or personalized messaging. By doing so, marketers can further strengthen the relationship with loyal customers and increase their profitability.

Question 15

When Starbucks first opened,many critics suggested,"No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be __________ to the company's offerings.
A) responsive
B) perceptive
C) identifiable
D) reachable
E) quantifiable

Accepted Answer

The word "responsive" fits best in this context as it means receptive or willing to consider and respond favorably to something. The critics suggested that consumers would not be receptive or willing to pay $4 for a cup of coffee from Starbucks.

Question 16

Kim's Kayak Tours initially identified active retirees living in the retirement community nearby as one of its target markets.Kim then tailored her service and marketing message to the interests and schedules of that audience.Kim initially used __________ segmentation and then used __________ segmentation.
A) micromarketing; loyalty
B) lifestyle; macromarketing
C) geodemographic; lifestyle
D) geographic; loyalty
E) behavioral; geodemographic

Accepted Answer

Kim initially used geodemographic segmentation by identifying active retirees living in the retirement community nearby as one of its target markets. Geodemographic segmentation involves grouping consumers based on where they live and their demographic characteristics. Kim then used lifestyle segmentation by tailoring her service and marketing message to the interests and schedules of that audience, which is based on their activities, interests, and opinions. This type of segmentation is more focused on the psychographic characteristics of the consumers, rather than just their geographic location and demographic information.

Question 17

Talbots,an upscale women's clothing store,targets college-educated women between 35 and 55 years old with average household income of $75,000 or more.This is a form of __________ segmentation.
A) benefit
B) geodemographic
C) psychographic
D) demographic
E) geographic

Accepted Answer

This is a form of demographic segmentation as it is based on measurable characteristics such as age, education level, and income.

Question 18

When Talbots,an upscale women's clothing store,tries to portray an image of "traditional,conservative,and with good taste," it is appealing to its target market's
A) lifestyle.
B) geodemographics.
C) demographics.
D) loyalty.
E) PRIZM segment.

Accepted Answer

The answer of When Talbots,an upscale women's clothing store,tries to...

Question 19

Ryan wants to sell personal website services to American soldiers in Afghanistan.Because of the difficulty of communicating with people in a war zone,Ryan may have trouble with this segment not being
A) substantial.
B) perceptive.
C) identifiable.
D) reachable.
E) quantifiable.

Accepted Answer

The difficulty of communicating with people in a war zone makes it challenging for Ryan to reach potential customers in Afghanistan. The other options do not accurately reflect the issue at hand.

Question 20

While demographic and geographic segmentation of retail customers are relatively easy,these characteristics do not help marketers determine
A) how old their customers are.
B) what their customers need.
C) where their customers live.
D) which customers have young children.
E) what income brackets their customers are in.

Accepted Answer

Demographic and geographic segmentation only provide information about who and where the customers are, but not about their specific needs or preferences. Marketers would need to employ other methods of research, such as psychographic or behavioral segmentation, to determine what their customers need.

Quiz 9: Segmentation, Targeting, and Positioning

Geodemographic segmentation can be particularly useful for __________,because customers typically patronize stores close to their neighborhood.

When Ron complained to his bank about the unprofessional behavior of one teller,the branch manager added a code into his accounts alerting all tellers that Ron was a valued customer and to provide whatever service he requests.The branch management included Ron in its __________ segmentation.

Retail store chains often use __________ data to tailor each store's assortment to the preferences of the local community.

Carlos has identified four potential market segments for his Rent-A-Nurse service.He will now compare the segments to see if they are distinct from each other.Carlos is evaluating whether or not each segment is

Marketers often employ a combination of segmentation methods,using to identify and target their customers,and to design products and messages to appeal to them.

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service.She will now evaluate whether or not each segment is attractive relative to all of the following except

For a segmentation strategy to be successful,the customers in the segment must react similarly and positively to the firm's marketing mix.In other words,the market segment must be

One of the reasons marketers use loyalty segmentation is

Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power.Greta is concerned with whether the segment is

With access to the Internet nearly universal in the United States,many potential market segments have become more

College students can be a less __________ market segment because students' media habits are quite diverse and firms might have to use a wide variety of media to attract this segment.

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service.The next step is to

Airlines were among the first retailers to embrace loyalty segmentation when they created

Marketers often create a special marketing mix for loyalty segments because these segments are

When Starbucks first opened,many critics suggested,"No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be __________ to the company's offerings.

Kim's Kayak Tours initially identified active retirees living in the retirement community nearby as one of its target markets.Kim then tailored her service and marketing message to the interests and schedules of that audience.Kim initially used segmentation and then used segmentation.

Talbots,an upscale women's clothing store,targets college-educated women between 35 and 55 years old with average household income of $75,000 or more.This is a form of __________ segmentation.

When Talbots,an upscale women's clothing store,tries to portray an image of "traditional,conservative,and with good taste," it is appealing to its target market's

Ryan wants to sell personal website services to American soldiers in Afghanistan.Because of the difficulty of communicating with people in a war zone,Ryan may have trouble with this segment not being

While demographic and geographic segmentation of retail customers are relatively easy,these characteristics do not help marketers determine