Question 1

What is the major problem with segmenting the market on the basis of income alone?

Accepted Answer

A)  Income indicates only the presence (or absence) of the ability to pay for a product, whereas the actual choice may be based on the consumer's lifestyle, taste and values. 
B)  Marketers do not know the actual or total income of their customers. 
C)  Income does not indicate how much a consumer will actually spend on a particular product or service. 
D)  The market segments from segmenting this way will not be accessible and sizeable. 
A)  Income indicates only the presence (or absence) of the ability to pay for a product, whereas the actual choice may be based on the consumer's lifestyle, taste and values. 
B)  Marketers do not know the actual or total income of their customers. 
C)  Income does not indicate how much a consumer will actually spend on a particular product or service. 
D)  The market segments from segmenting this way will not be accessible and sizeable. A

Question 2

What is psychographic segmentation and what are the reasons marketers are increasingly employing this form of applied consumer research?

Accepted Answer

Psychographic research is closely aligned with psychological research, especially personality and attitude measurement and is also called 'lifestyle analysis'. In their most common form, psychographic segmentation studies employ a battery of statements designed to identify relevant aspects of a consumer's personality, buying motives, interests, attitudes, beliefs and values. The psychographic profile of a consumer segment can be thought of as a composite of consumers' measured activities, interests and opinions (AIOs).
Marketers are increasingly employing this form of applied consumer research as it is a valuable marketing tool by helping to identify promising consumer segments that are likely to be responsive to specific marketing messages. In a psychographic research study, consumers are usually asked to reveal their own personal reactions to a variety of statements or their household's reactions which provides marketers with useful insights to their consumer segments. Psychographic research is also used by marketers because when it is used in conjunction with demographic segmentation it allows them to create descriptive profiles of consumer segments containing useful segmentation information.

Question 3

Which of the following statements about the VALS framework is not true?

Accepted Answer

A)  There are eight segments which divide consumers in terms of their primary motivations and level of resources. 
B)  VALS explains why different types of consumers often exhibit the same behaviours for different reasons. 
C)  The three primary motivations are taken from Freudians consumer theory. 
D)  'Resources' (High to Low) refers to the range of psychological, physical, emotional, demographic and socioeconomic means and capacities that consumers have to draw upon. 
A)  There are eight segments which divide consumers in terms of their primary motivations and level of resources. 
B)  VALS explains why different types of consumers often exhibit the same behaviours for different reasons. 
C)  The three primary motivations are taken from Freudians consumer theory. 
D)  'Resources' (High to Low) refers to the range of psychological, physical, emotional, demographic and socioeconomic means and capacities that consumers have to draw upon. C

Question 4

In some cases, businesses are in a position where they need to discover and seek a more generic consumer need and therefore adopt a countersegmentation strategy.

Accepted Answer

A) True 
 B)False

Question 5

'When I'm away on business, I stay at a Hilton Hotel; when I travel with my family, I stay at a Flag Inn.' This statement outlines why marketers use which kind of segmentation?

Accepted Answer

A)  Sociocultural segmentation. 
B)  User-related segmentation. 
C)  User-situation segmentation. 
D)  Benefit segmentation. 
A)  Sociocultural segmentation. 
B)  User-related segmentation. 
C)  User-situation segmentation. 
D)  Benefit segmentation.

Question 6

_______ is the process of dividing a market into distinct subsets of consumers with common needs or characteristics and selecting one or more subsets to target with a distinct marketing strategy.

Accepted Answer

A)  Market segmentation 
B)  Targeting 
C)  Positioning 
D)  None of the above 
A)  Market segmentation 
B)  Targeting 
C)  Positioning 
D)  None of the above

Question 7

Which of the following information about consumers can help marketers make decisions about target marketing and advertising strategies?

Accepted Answer

A)  The level of education of a consumer. 
B)  The occupation of a consumer. 
C)  Hobbies or activities of a consumer. 
D)  All of the above. 
A)  The level of education of a consumer. 
B)  The occupation of a consumer. 
C)  Hobbies or activities of a consumer. 
D)  All of the above.

Question 8

Because segmentation strategies benefit both marketers and consumers, they have received wide support from both sides of the marketplace.

Accepted Answer

A) True 
 B)False

Question 9

a. What are consumer-rooted selection criteria? How can this group be further segmented according to the four-way classification of the characteristics used to segment the buyers of consumer goods?
b. What are consumption-specific criteria? What type of information is part of the two groupings within consumption-specific criteria?

Accepted Answer

a.Consumer-rooted features stem from the

Question 10

The following are all ways in which marketers can segment based on usage, except:

Accepted Answer

A)  actual rate of usage. 
B)  brand attitude. 
C)  awareness level. 
D)  degree of brand loyalty. 
A)  actual rate of usage. 
B)  brand attitude. 
C)  awareness level. 
D)  degree of brand loyalty.

Question 11

Which of the following is a way in which marketers obtain information about the sufficiency of people in their proposed market segments?

Accepted Answer

A)  Secondary data from the Australian Bureau of Statistics website. 
B)  Undertake a probability survey from which the findings can be projected on to the entire market. 
C)  Both answers (a) and (b) are true. 
D)  Only answer (a) is true. 
A)  Secondary data from the Australian Bureau of Statistics website. 
B)  Undertake a probability survey from which the findings can be projected on to the entire market. 
C)  Both answers (a) and (b) are true. 
D)  Only answer (a) is true.

Question 12

Which of the following statements is most true according to a specific company?

Accepted Answer

A)  There are usually more market segments than target markets. 
B)  There are usually more target markets than market segments. 
C)  Both are true. 
D)  None are true. 
A)  There are usually more market segments than target markets. 
B)  There are usually more target markets than market segments. 
C)  Both are true. 
D)  None are true.

Question 13

Which of the following is not an example of a brand using market segmentation and targeting to benefit both participants in the market place?

Accepted Answer

A)  Honda targeting its' larger car 'Odyssey' to families whilst targeting a smaller car the 'Jazz' to young singles. 
B)  New Balance athletic shoes targeting different groups who use shoes for either, walking, running, hiking, climbing or cross-training with different types of footwear. 
C)  Swatch introducing new sporty watches in addition to their existing products to target sporty people with outdoor life-styles. 
D)  Holden introduces a new car to target all Australian consumers. 
A)  Honda targeting its' larger car 'Odyssey' to families whilst targeting a smaller car the 'Jazz' to young singles. 
B)  New Balance athletic shoes targeting different groups who use shoes for either, walking, running, hiking, climbing or cross-training with different types of footwear. 
C)  Swatch introducing new sporty watches in addition to their existing products to target sporty people with outdoor life-styles. 
D)  Holden introduces a new car to target all Australian consumers.

Question 14

Geodemographic segmentation is most useful when advertisers' best prospects (in terms of affluence, available time, goals and interests) can be isolated in terms of:

Accepted Answer

A)  highest to lowest income. 
B)  where they live. 
C)  what type of house they live in. 
D)  where they are from. 
A)  highest to lowest income. 
B)  where they live. 
C)  what type of house they live in. 
D)  where they are from.

Question 15

Offering the same product and in effect the same marketing mix to all consumers is called:

Accepted Answer

A)  targeting. 
B)  hard-sell. 
C)  positioning. 
D)  mass marketing. 
A)  targeting. 
B)  hard-sell. 
C)  positioning. 
D)  mass marketing.

Question 16

The division of the total potential markets into smaller, homogeneous segments is:

Accepted Answer

A)  segmentation. 
B)  lifestyle analysis. 
C)  positioning. 
D)  market diversification. 
A)  segmentation. 
B)  lifestyle analysis. 
C)  positioning. 
D)  market diversification.

Question 17

VALS is a framework which helps marketers measure demographic information which includes variables such as a consumer's gender, age or occupation.

Accepted Answer

A) True 
 B)False

Question 18

It is unlikely in hybrid segmentation for marketers to combine the use of demographic segmentation with psychographic segmentation.

Accepted Answer

A) True 
 B)False

Question 19

As human beings, we all have the same biological needs, but we all acquire additional needs that are shaped by our environment. Some of these acquired needs are common to many people. The commonality of a need or interest constitutes a:

Accepted Answer

A)  target market. 
B)  market segment. 
C)  consumption decision. 
D)  marketing mix. 
A)  target market. 
B)  market segment. 
C)  consumption decision. 
D)  marketing mix.

Question 20

Identify and explain the five criteria for effective targeting of market segments.
-1. Identification 
2. Sufficiency
3. Stability
4. Accessibility
5. Congruent with the company's objectives and resources

Accepted Answer

1. marketers must be able to identify an

What is the major problem with segmenting the market on the basis of income alone?

What is psychographic segmentation and what are the reasons marketers are increasingly employing this form of applied consumer research?

Which of the following statements about the VALS framework is not true?

In some cases, businesses are in a position where they need to discover and seek a more generic consumer need and therefore adopt a countersegmentation strategy.

'When I'm away on business, I stay at a Hilton Hotel; when I travel with my family, I stay at a Flag Inn.' This statement outlines why marketers use which kind of segmentation?

_______ is the process of dividing a market into distinct subsets of consumers with common needs or characteristics and selecting one or more subsets to target with a distinct marketing strategy.

Which of the following information about consumers can help marketers make decisions about target marketing and advertising strategies?

Because segmentation strategies benefit both marketers and consumers, they have received wide support from both sides of the marketplace.

The following are all ways in which marketers can segment based on usage, except:

Which of the following is a way in which marketers obtain information about the sufficiency of people in their proposed market segments?

Which of the following statements is most true according to a specific company?

Which of the following is not an example of a brand using market segmentation and targeting to benefit both participants in the market place?

Geodemographic segmentation is most useful when advertisers' best prospects (in terms of affluence, available time, goals and interests) can be isolated in terms of:

Offering the same product and in effect the same marketing mix to all consumers is called:

The division of the total potential markets into smaller, homogeneous segments is:

VALS is a framework which helps marketers measure demographic information which includes variables such as a consumer's gender, age or occupation.

It is unlikely in hybrid segmentation for marketers to combine the use of demographic segmentation with psychographic segmentation.

As human beings, we all have the same biological needs, but we all acquire additional needs that are shaped by our environment. Some of these acquired needs are common to many people. The commonality of a need or interest constitutes a:

Identify and explain the five criteria for effective targeting of market segments. -1. Identification 2. Sufficiency 3. Stability 4. Accessibility 5. Congruent with the company's objectives and resources

The foundations of consumer behaviour

Consumer needs and motivation

Personality and self-concept

Consumer perception

Consumer learning and involvement

Consumer attitudes—attitude development and change

Social influences on consumer behaviour

The family

Social class and consumer behaviour

The influence of culture on consumer behaviour

Subcultural aspects of consumer behaviour

Cross-cultural consumer behaviour: An international perspective

Decision making

Consumer influence and diffusion of innovations

Public policy and consumer protection

Filters

Exam 2: Market segmentation: segmenting, targeting and positioning for diverse

What is the major problem with segmenting the market on the basis of income alone?

What is psychographic segmentation and what are the reasons marketers are increasingly employing this form of applied consumer research?

Which of the following statements about the VALS framework is not true?

In some cases, businesses are in a position where they need to discover and seek a more generic consumer need and therefore adopt a countersegmentation strategy.

'When I'm away on business, I stay at a Hilton Hotel; when I travel with my family, I stay at a Flag Inn.' This statement outlines why marketers use which kind of segmentation?

_______ is the process of dividing a market into distinct subsets of consumers with common needs or characteristics and selecting one or more subsets to target with a distinct marketing strategy.

Which of the following information about consumers can help marketers make decisions about target marketing and advertising strategies?

Because segmentation strategies benefit both marketers and consumers, they have received wide support from both sides of the marketplace.

The following are all ways in which marketers can segment based on usage, except:

Which of the following is a way in which marketers obtain information about the sufficiency of people in their proposed market segments?

Which of the following statements is most true according to a specific company?

Which of the following is not an example of a brand using market segmentation and targeting to benefit both participants in the market place?

Geodemographic segmentation is most useful when advertisers' best prospects (in terms of affluence, available time, goals and interests) can be isolated in terms of:

Offering the same product and in effect the same marketing mix to all consumers is called:

The division of the total potential markets into smaller, homogeneous segments is:

VALS is a framework which helps marketers measure demographic information which includes variables such as a consumer's gender, age or occupation.

It is unlikely in hybrid segmentation for marketers to combine the use of demographic segmentation with psychographic segmentation.

As human beings, we all have the same biological needs, but we all acquire additional needs that are shaped by our environment. Some of these acquired needs are common to many people. The commonality of a need or interest constitutes a:

Identify and explain the five criteria for effective targeting of market segments. -1. Identification 2. Sufficiency 3. Stability 4. Accessibility 5. Congruent with the company's objectives and resources

The foundations of consumer behaviour

Consumer needs and motivation

Personality and self-concept

Consumer perception

Consumer learning and involvement

Consumer attitudes—attitude development and change

Social influences on consumer behaviour

The family

Social class and consumer behaviour

The influence of culture on consumer behaviour

Subcultural aspects of consumer behaviour

Cross-cultural consumer behaviour: An international perspective

Decision making

Consumer influence and diffusion of innovations

Public policy and consumer protection

Filters