Chapter 8 Flashcards
Concerning market segmentation, which of the following statements is NOT correct?
a. Only for-profit organizations practice market segmentation.
b. Firms that practice market segmentation don’t necessarily change their products to
meet the needs of different market segments.
c. There are too many variables to attract all customers using the same marketing
mix.
d. Market segmentation attempts to divide the total market into smaller groups
A
1) Which of the following statements about market segmentation is true?
A) It involves changing the identity of a product, relative to the identity of competing products,
in the collective minds of the target market.
B) It is a process of evaluating each segment’s attractiveness and selecting one or more to enter.
C) It is a process of creating an image or identity of the product in the minds of the target market.
D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs
and wants.
E) It is the quality of how marketers go to market with the goal of optimizing their spending to
achieve good results.
D
Which of the following is NOT a common basis for segmenting consumer markets?
a. geographic
b. psychographic
c. competitive
d. demographic
C
2) Establishing and communicating the distinctive benefit(s) of the company’s market offering,
for each target segment is called ________.
A) market research
B) market positioning
C) marketing effectiveness
D) market segmentation
E) market dominance
B
The process of selecting one or more market segments to enter is called ________.
A) market targeting
B) market dominance
C) market positioning
D) market segmentation
E) market research
A
A ________ consists of a group of customers who share a similar set of needs and wants.
A) vertical marketing system
B) market basket
C) market share
D) market segment
E) market level
D
Why is segmentation necessary in competitive markets?
a) To monopolize the market
b) To minimize competition
c) Competitive markets are too big and diverse for one company to handle all the various wants and needs
d) To increase product prices
C
What is one of the primary benefits of segmentation for companies?
a) Expanding market reach
b) Minimizing customer diversity
c) Allowing companies to better specify customers’ wants and needs
d) Creating generic products for all customers
C
To be useful, market segments must be measurable.
T
Which of the following is a key criterion for segmentation according to the MARS framework?
a) Marketing
b) Measurable
c) Methods
d) Management
B
Why is measurability important in segmentation?
a) It helps in creating generic marketing strategies
b) It ensures uniformity among customer segments
c) Marketing research can reliably tell you how big (or small) the segment is
d) It reduces the need for budget allocation
C
How does size estimation aid in decision-making for companies?
a) It eliminates the need for budget planning
b) It ensures uniformity in marketing strategies
c) It helps in budget allocation and decision-making
C
What does the criterion of “accessible” mean in segmentation?
a) The segment is easy to understand
b) The segment has a high level of income
c) You can identify and target the segment
d) The segment is located in urban areas
C
Why is it important for a segment to be accessible?
a) To increase competition among competitors
b) To ensure that marketing promotions can reach them
c) To limit the number of potential customers
d) To reduce the effectiveness of marketing strategies
B
To meet the ________ criterion of useful market segments, it must be possible to formulate
effective programs for attracting and serving the segments.
A) measurable
B) substantial
C) accessible
D) differentiable
E) actionable
E
What does the criterion of “responsive” or “actionable” imply in segmentation?
a) Segments should react quickly to marketing efforts
b) Segments should be easily understood
c) Segments should respond differently to marketing efforts
d) Segments should have similar behaviors
C
Why is it important for segments to respond differently to marketing efforts?
a) To reduce the effectiveness of marketing strategies
b) To ensure that all segments receive equal attention
c) Meaningful marketing plans are tailored to address unique segment needs
d) To simplify the marketing process
C
What approach might be more practical if segments respond similarly to marketing efforts?
a) Combining them into a single segment
b) Dividing them into smaller segments
c) Ignoring segmentation altogether
d) Conducting more extensive market research
A
According to the ________ criterion for useful market segments, a segment should be the
largest possible homogenous group worth going after with a tailored marketing program.
A) measurable
B) substantial
C) accessible
D) differentiable
E) actionable
B
What does the criterion of “substantial” imply in segmentation?
a) Segments should be small and manageable
b) Segments should be large enough to support profitable marketing strategies
c) Segments should be niche and exclusive
d) Segments should be numerous
B
Why should each segment be large enough to support a profitable marketing strategy?
a) To limit competition among segments
b) To ensure exclusivity within segments
c) Each segment should be large enough, durable enough, and different enough to make it worth the while
d) Smaller segments allow for more personalized marketing efforts
C
Pampers divides its market demographically on the basis of ________ into prenatal, new
baby, baby, toddler, and preschooler.
A) life stage
B) gender
C) age
D) income
E) social class
C
) Jose and Erika have just divorced. Which of the following demographic segmentation
subsegment formats might be used by marketers to reach Jose or Erika?
A) life stage
B) benefits
C) age segment
D) personality type
E) social class
A
) If a marketer is seeking to segment a business market, which of the following variables is
generally felt to be the most important?
A) personal characteristics
B) demographic variables
C) situational factors
D) operating variables
E) purchasing approaches
B
A marketer is interested in segmenting a business market on ________ if the marketer
intends to segment the market based on industries and geographical areas to serve.
A) demographic variables
B) situational factors
C) operating variables
D) purchasing approaches
E) personal characteristics
A
In the ________ step of the market segmentation process, the marketer determines which
demographics, lifestyles, and usage behaviors make each needs-based segment distinct and
identifiable.
A) segment “acid test”
B) segment attractiveness
C) segment profitability
D) need-based segmentation
E) segment identification
E
A local service company has decided to segment its market based on occupation; therefore, it
has chosen a form of demographic segmentation for its approach.
T
Demographic variables are popular because they are often associated with consumer needs
and wants and they are easy to measure.
T
What does segmenting allow marketers to do?
a) Combine customers’ needs and wants
b) Determine customers’ purchasing behavior
c) Divide customers based on different needs and wants
d) Analyze customers’ demographics only
C
What does the “M” stand for in the MARS framework of segmentation criteria?
a) Measurable (could be measured)
b) Meaningful (important to customers)
c) Manageable (easy to handle)
d) Memorable (leaves an impression)
A
According to the MARS framework, what does the “A” represent?
a) Accessible (how it could be accessed)
b) Accurate (reliable data)
c) Aggressive (pushing marketing efforts)
d) Analytical (using data analysis)
A
How is responsiveness defined in the MARS framework?
a) How customers respond to product quality
b) How customers react to changes in marketing strategies
c) How customers react to competitors’ actions
d) How customers react to demographic changes
B
Why is the “S” criterion important in segmentation?
a) To analyze customer satisfaction
b) To determine customer loyalty
c) To ensure the customer base is big enough
d) To identify customer preferences
C
Which of the following is NOT a demographic factor commonly used for segmenting consumer markets?
a) Age
b) Occupation
c) Product preference
d) Income
C
Why is demographic segmentation widely used?
a) Due to its complexity
b) Ease of measurement and availability of high-quality data
c) Limited data availability
d) Its exclusivity to specific markets
B
Which of the following is an example of a demographic characteristic?
a) Lifestyle choices
b) Brand loyalty
c) Age
d) Product usage frequency
C
How does demographic segmentation assist marketers?
a) By identifying consumer preferences
b) By providing insights into psychographic factors
c) By categorizing consumers based on measurable population characteristics
d) By focusing solely on geographic factors
C
Hilton Hotels customizes rooms and lobbies according to location. Northeastern hotels are
sleeker and more cosmopolitan. Southwestern hotels are more rustic. This is an example of
________ segmentation.
A) demographic
B) behavioral
C) psychographic
D) geographic
E) cultural
D
If a marketer decides to segment a market based on neighborhoods, the marketer will have
chosen the ________ method of segmentation.
A) demographic
B) psychographic
C) geographic
D) cultural
E) behavioral
C
A marketer is interested in segmenting a business market on ________ if the marketer
intends to segment the market based on industries and geographical areas to serve.
A) demographic variables
B) situational factors
C) operating variables
D) purchasing approaches
E) personal characteristics
A
Customer cloning is the practice of identifying the key characteristics of a market segment
and then identifying multiple geographic areas where the majority of the population possesses
those characteristics
F
