Question 1

Why do marketers rely heavily on demographic characteristics when segmenting consumer markets?

Accepted Answer

The answer of Why do marketers rely heavily on demographic...

Question 2

Use the following to answer questions 
GE Transportation produces train engines for sale in countries around the world.After looking at the total market for train engines, the company found that different rail lines wanted different engines.Major rail lines in the USA and South America wanted engines to haul heavy freight.Rail lines in Sweden and Germany were interested in a cleaner, greener train engine.Rail lines operated by several Eastern European countries wanted train engines for running short distances between cities in their own country.GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine and its Dash 9 suited for short distances.
-Researchers at GE Transportation estimate that 1000 rail lines throughout the world will purchase some kind of train engine next year.That number represents the:

Accepted Answer

A) company sales potential. 
B) breakdown approach. 
C) market potential. 
D) buildup approach. 
E) company sales forecast. 
A) company sales potential. 
B) breakdown approach. 
C) market potential. 
D) buildup approach. 
E) company sales forecast.

Question 3

A market segment profile may cover such aspects as demographic characteristics, geographic factors, product benefits sought, lifestyles, brand preferences and usage rates.

Accepted Answer

A) True 
 B)False

Question 4

Imagine Designer Kidz is a home-based business that sells high-quality children's clothing at reasonable prices using in-home parties.These in-home parties typically cater to families with small children and middle- to upper-middle-class income.Designer Kidz is using __________ variables to segment its market.

Accepted Answer

A) demographic 
B) psychographic 
C) sociographic 
D) behaviouristic 
E) geographic 
A) demographic 
B) psychographic 
C) sociographic 
D) behaviouristic 
E) geographic

Question 5

What variables are used to segment business markets?

Accepted Answer

Business markets can be segmented using

Question 6

One condition for effective segmentation is that at least one segment must have substantial profit potential.

Accepted Answer

A) True 
 B)False

Question 7

The three most commonly used psychographic segmentation variables are:

Accepted Answer

A) personality, perception and learning. 
B) personality, perception and behaviour. 
C) motives, attitudes and lifestyles. 
D) attitudes, personality and perception. 
E) personality, motives and lifestyles. 
A) personality, perception and learning. 
B) personality, perception and behaviour. 
C) motives, attitudes and lifestyles. 
D) attitudes, personality and perception. 
E) personality, motives and lifestyles.

Question 8

Purchasers who intend to use or benefit from the purchased product and do not buy products to make profits are part of the:

Accepted Answer

A) consumer market. 
B) end-use consumption group. 
C) business market. 
D) household purchasing group. 
E) organisational market. 
A) consumer market. 
B) end-use consumption group. 
C) business market. 
D) household purchasing group. 
E) organisational market.

Question 9

Occupation, family size and family life cycle are all __________ variables for segmenting consumer markets.

Accepted Answer

A) behaviouristic 
B) demographic 
C) geographic 
D) psychographic 
E) usage 
A) behaviouristic 
B) demographic 
C) geographic 
D) psychographic 
E) usage

Question 10

What method should Lil' Angels use to forecast sales in new regions?

Accepted Answer

A) Sales force survey 
B) Time series analysis 
C) Correlation method 
D) Market test 
E) Regression analysis 
A) Sales force survey 
B) Time series analysis 
C) Correlation method 
D) Market test 
E) Regression analysis

Question 11

What are the major steps of the target market selection process?

Accepted Answer

The answer of What are the major steps of the...

Question 12

Market potential is the amount of a product that an organisation could sell during a specified period.

Accepted Answer

A) True 
 B)False

Question 13

A disadvantage of the concentrated targeting strategy is that:

Accepted Answer

A) the firm's financial condition is tied to a single and specialised marketing mix. 
B) large sales volumes cannot be generated. 
C) production costs may be higher than with other strategies. 
D) marketing personnel may become dissatisfied with the limited opportunities provided by this approach. 
E) marketing costs are often higher than for other strategies. 
A) the firm's financial condition is tied to a single and specialised marketing mix. 
B) large sales volumes cannot be generated. 
C) production costs may be higher than with other strategies. 
D) marketing personnel may become dissatisfied with the limited opportunities provided by this approach. 
E) marketing costs are often higher than for other strategies.

Question 14

Which of the following is the biggest drawback to using psychographic variables?

Accepted Answer

A) They are not strongly reflective of consumer behaviour. 
B) They are difficult to measure. 
C) They give poor information about consumer needs. 
D) They do not reflect socioeconomic characteristics of consumers. 
E) The resulting segments are difficult to reach 
A) They are not strongly reflective of consumer behaviour. 
B) They are difficult to measure. 
C) They give poor information about consumer needs. 
D) They do not reflect socioeconomic characteristics of consumers. 
E) The resulting segments are difficult to reach

Question 15

The process of dividing a total market into market groups containing people with relatively similar product needs is called:

Accepted Answer

A) segmentation. 
B) diversification. 
C) target marketing. 
D) concentration. 
E) customisation. 
A) segmentation. 
B) diversification. 
C) target marketing. 
D) concentration. 
E) customisation.

Question 16

When selecting specific target markets, a firm should:

Accepted Answer

A) revert to an undifferentiated approach if the market is deemed heterogeneous. 
B) choose the segments most in line with the firm's objectives and long-term growth. 
C) choose all segments that are determined to be profitable for the organisation. 
D) choose the minimum number of segments necessary to achieve company sales potential. 
E) pick the segments with the best sales forecasts for the upcoming period. 
A) revert to an undifferentiated approach if the market is deemed heterogeneous. 
B) choose the segments most in line with the firm's objectives and long-term growth. 
C) choose all segments that are determined to be profitable for the organisation. 
D) choose the minimum number of segments necessary to achieve company sales potential. 
E) pick the segments with the best sales forecasts for the upcoming period.

Question 17

Compare and contrast the undifferentiated, concentrated and differentiated targeting strategies of market segmentation.Under what conditions is each most effective?

Accepted Answer

Market segmentation is a crucial aspect

Question 18

What are the four criteria that constitute a market?

Accepted Answer

The four criteria that constitute a mark

Question 19

The division of a market based on what benefits consumers want from the product is called __________ segmentation.

Accepted Answer

A) behaviouristic 
B) product usage 
C) benefit 
D) end-purpose 
E) advantage 
A) behaviouristic 
B) product usage 
C) benefit 
D) end-purpose 
E) advantage

Question 20

A market in which a large proportion of customers have similar needs for a product is called a(n) __________ market.

Accepted Answer

A) undifferentiated 
B) heterogeneous 
C) homogeneous 
D) differentiated 
E) concentrated 
A) undifferentiated 
B) heterogeneous 
C) homogeneous 
D) differentiated 
E) concentrated

Why do marketers rely heavily on demographic characteristics when segmenting consumer markets?

A market segment profile may cover such aspects as demographic characteristics, geographic factors, product benefits sought, lifestyles, brand preferences and usage rates.

What variables are used to segment business markets?

One condition for effective segmentation is that at least one segment must have substantial profit potential.

The three most commonly used psychographic segmentation variables are:

Purchasers who intend to use or benefit from the purchased product and do not buy products to make profits are part of the:

Occupation, family size and family life cycle are all __________ variables for segmenting consumer markets.

What method should Lil' Angels use to forecast sales in new regions?

What are the major steps of the target market selection process?

Market potential is the amount of a product that an organisation could sell during a specified period.

A disadvantage of the concentrated targeting strategy is that:

Which of the following is the biggest drawback to using psychographic variables?

The process of dividing a total market into market groups containing people with relatively similar product needs is called:

When selecting specific target markets, a firm should:

Compare and contrast the undifferentiated, concentrated and differentiated targeting strategies of market segmentation.Under what conditions is each most effective?

What are the four criteria that constitute a market?

The division of a market based on what benefits consumers want from the product is called __________ segmentation.

A market in which a large proportion of customers have similar needs for a product is called a(n) __________ market.

Key Concepts in Marketing

Marketing Environment, Social Responsibility and Ethics

Planning, Implementing and Evaluating Marketing Strategy

Marketing Research and Information Systems

Consumer and Business Behaviour

Digital Marketing and Social Networking

The Power of Branding

Product Decisions

Pricing Decisions

Distribution Decisions

Integrating Marketing Communications

People, Physical Evidence, Processes and Partnerships

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Exam 6: Segmentation, Target Markets and Positioning

Why do marketers rely heavily on demographic characteristics when segmenting consumer markets?

A market segment profile may cover such aspects as demographic characteristics, geographic factors, product benefits sought, lifestyles, brand preferences and usage rates.

What variables are used to segment business markets?

One condition for effective segmentation is that at least one segment must have substantial profit potential.

The three most commonly used psychographic segmentation variables are:

Purchasers who intend to use or benefit from the purchased product and do not buy products to make profits are part of the:

Occupation, family size and family life cycle are all __________ variables for segmenting consumer markets.

What method should Lil' Angels use to forecast sales in new regions?

What are the major steps of the target market selection process?

Market potential is the amount of a product that an organisation could sell during a specified period.

A disadvantage of the concentrated targeting strategy is that:

Which of the following is the biggest drawback to using psychographic variables?

The process of dividing a total market into market groups containing people with relatively similar product needs is called:

When selecting specific target markets, a firm should:

Compare and contrast the undifferentiated, concentrated and differentiated targeting strategies of market segmentation.Under what conditions is each most effective?

What are the four criteria that constitute a market?

The division of a market based on what benefits consumers want from the product is called __________ segmentation.

A market in which a large proportion of customers have similar needs for a product is called a(n) __________ market.

Key Concepts in Marketing

Marketing Environment, Social Responsibility and Ethics

Planning, Implementing and Evaluating Marketing Strategy

Marketing Research and Information Systems

Consumer and Business Behaviour

Digital Marketing and Social Networking

The Power of Branding

Product Decisions

Pricing Decisions

Distribution Decisions

Integrating Marketing Communications

People, Physical Evidence, Processes and Partnerships

Filters