Exam 3: Segmentation

Sometimes segments appear small only because the clustering was done too finely.

Lots of segmentation schemes fail because marketers focus on the wrong criteria.

Regarding the phrase "time is money," what type of effect does time seemingly have on money?

The fact that snow blowers tend to sell better in the north than in the south illustrates the importance of considering in marketing planning.

Sometimes a marketing manager might hold beliefs that are not consistent with the customer data.

Profitability means number of customers.

Vals psychographic-based segmentation is based on the idea that consumers are inspired by one of three primary motivations. Identify the three motivations and describe them.

An upscale segment is always a tempting one for marketers to target because marketers assume that those customers can afford to purchase their goods or services, with a little less price sensitivity than other customers.

A set of segments may be very clear from a statistical perspective, but they need to be useful from a managerial point of view.

Economists note that imperfect competition occurs where consumers have unique needs and desires.

Maslow's hierarchy ranges from satisfaction of basic biological needs to more abstract needs regarding well­ being.

Size does not always correlate with future growth potential.

A service called Prizm posits that MBAs who live in New York have a lot more in common with their counterparts in London, Saö Paulo, and Tokyo, than they do with their neighbors in New York who are relatively less educated or wealthy. This is an example of what types of information being combined?

Data sources for segmenting businesses and consumers tend to be the same.

Some customers are known for their expertise and involvement in a category and are willing to share information and give advice, making them likely to generate word of mouth. These people are knows as market .

Newlyweds are most likely to spend money on which of the following?

It's not unusual to see a segmentation study comprised of some usage variable (e.g., heavy vs. light users) or some attitudinal variable (e.g., positively inclined toward our brand vs. loyal to a competitor). What type of variable is it usually cross-tabbed with?

Young adults are most likely to be interested in which of the following?

Which of the following is a psychological factor?

The goal of homogeneity in customers' likes or dislikes is more achievable as the segment size gets smaller, but if the segment is too small, it might not be profitable to serve.