Deck 6: Segmenting and Targeting Markets

Question 1

What is a group of people or organizations that has wants and needs that can be satisfied by particular product categories,has the ability to purchase these products,and is willing to exchange resources for the products?

A) a firm
B) a market
C) a buyer
D) a target

Answer 1

B

Question 2

What is the process of dividing a market into meaningful groups that are relatively similar and identifiable?

A) positioning
B) market segmentation
C) market sampling
D) perceptual mapping

Answer 2

B

Question 3

Hildy Webb and LaTishe Brown own Creative Catering and would like to improve customer satisfaction and increase repeat business.When you ask them to describe a typical customer,they say it is impossible and explain that with corporate functions,family affairs,and fundraisers,they do not have a typical customer.Why do you suggest it is time for market segmentation?

A) This will position the company in the minds of their consumers as compared to their competitors.
B) Creative Catering needs to learn how to group these markets together into one market to serve all of them adequately.
C) It will help develop a generalized definition of the market as a whole and reveal the optimal marketing mix for this market.
D) It will enable them to build an accurate description of customer needs by group and to design a marketing mix to fit each segment.

Answer 3

D

Question 4

United Social Service Agency wants to identify segments by their readiness to participate in a drug and alcohol program or in prenatal care.The agency will need to gauge whether there are enough people to justify setting up the service.What is likely to be the first segmentation criterion problem for this proposal?

A) responsiveness
B) accessibility
C) responsibility
D) identifiability and measurability

Question 5

DCS Corporation is a company that makes barbecue grills.It has expanded into high-priced,multipurpose grills for people who want to be able to cook all their food outside.Facing little competition,DCS designed an excellent line of specialty grills,had good distribution,used effective promotion with this market,and within four years had a respectable market share.Yet financial losses every year have caused DCS to decide to drop this line.The reason could be that this market segment,relative to the resources devoted to it,lacked which of the following?

A) causality
B) substantiality
C) identifiability and measurability
D) accessibility

Question 6

According to one criteria,a selected segment must be large enough to warrant developing and maintaining a special marketing mix.Serving the specific needs of this segment must be commercially viable,even if the number of potential customers is small.Which criteria is being referenced?

A) accountability
B) substantiality
C) accessibility
D) responsiveness

Question 7

A group of high schoolers stop by an electronics store.The store has just received a new line of high-end flat-screen televisions.The televisions range in price from $2,000 to $7,000.All of the students want this new style of TV,but none has the means to buy one.Is this group of consumers a potential market for the flat-screen televisions?

A) Yes,they are a market because this group shares relatively similar product needs and purchasing characteristics.
B) No,they do not have the ability to purchase at this time.
C) Yes,they are a potential market since they are all about the same age.
D) No,to qualify as a market,they must need the product.

Question 8

SRD Research Firm has conducted marketing research on the market for concrete siding for homes.The research firm has determined there are thousands of homeowners who want the security,safety,warmth,and stability provided by concrete siding.These homeowners are generally married and between 25 and 54 years of age.They tend to live in suburban neighbourhoods,and most subscribe to lifestyle magazines.If you were interpreting these results,what might you suggest?

A) that SRD conduct a follow-up analysis to determine if the segments it might choose would respond Differently from other segments to its marketing strategy
B) that SRD examine the research report again to see if it can determine segment accessibility
C) that SRD not segment the concrete siding market because the only market for siding is contractors who build the homes
D) that SRD conduct additional research because it has no idea about the measurability of its segments

Question 9

A market is people or organizations that have which of the following?

A) needs and wants and an ability and willingness to buy
B) the ability,willingness,and power to buy
C) a medium of exchange and products they desire
D) unmet needs or wants and products or services that satisfy those unmet needs or wants

Question 10

If a market segment is especially motivated by coupons in newspapers,which segmentation success criterion is most influential in the success of this program?

A) functionality
B) accessibility
C) responsiveness
D) identifiability and measurability

Question 11

The marketing researcher for Chickadee,a manufacturer of designer clothing for infants and toddlers,has submitted a report on potential segments for expansion of its marketing efforts.She noted an increase of professional women over the age of 35 who are leaving their jobs to have their first babies.She described this segment as having substantiality.What does this mean?

A) This segment exhibits a response rate to marketing variables Different from the rates of other segments.
B) This segment has enough special stores,magazines,and other outlets that it will be possible to direct advertisements at this group.
C) This segment is large enough to permit a profitable market effort toward its members.
D) This segment will be

Question 12

Every six months or so,some manufacturer introduces a fancy new shape or colour for the boxes that house the hardware to run PCs.These companies contend that beige is boring,and that people are ready for "something fun." These manufacturers ignore the fact that Canadians like their technology in plain wrappers-look at how few coloured cell phones you see.These bright colours and odd shapes have failed because the market segment to which they are targeted lacks which of the following?

A) substantiality
B) accessibility
C) responsiveness
D) identifiability and measurability

Question 13

A manufacturer of lenses used in microscopes,binoculars,and telescopes has segmented its market into scientific equipment manufacturers,sporting equipment manufacturers,and retailers who sell replacement lenses.In order for this segmentation scheme to be successful,all of the following criteria must be met EXCEPT which one?

A) responsiveness
B) substantiality
C) complexity
D) accessibility

Question 14

What is the purpose of market segmentation?

A) to group a large number of markets together enabling a company to serve them simultaneously
B) to enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups
C) to reduce the market down to a specific size that the firm can handle
D) to divide the market into equal size and profit regions for sales territories

Question 15

To be useful,a segmentation scheme must produce segments that meet four basic criteria.What are they?

A) reliability,flexibility,tangibility,and accessibility
B) substantiality,identifiability and measurability,accessibility,and responsiveness
C) segmentable,targetable,reliability,and homogeneity
D) tangibility,flexibility,causality,and accessibility

Question 16

Which of the following is one of the four criteria identified in the text for successful market segmentation?

A) substantiality
B) unmeasurability
C) accountability
D) inaccessibility

Question 17

Market researchers estimate thousands of Canadians have high blood pressure and do not know it because they do not have annual medical exams.A pharmaceutical company that has developed a medicine to reduce blood pressure should not count on this group to be a good target market because the group lacks which of the following?

A) substantiality,identifiability,and measurability
B) both accessibility and substantiality
C) both reliability and responsiveness
D) both accessibility and responsiveness

Question 18

Market segmentation can assist marketers to do all of the following EXCEPT which one?

A) evaluate where and why demand is falling
B) identify where new opportunities are emerging
C) identify which variable base should be used for segmenting
D) develop more precise definitions of customer needs and wants

Question 19

What is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have relatively similar product needs?

A) a market segment
B) a segmentation base
C) a market universe
D) a population sample

Question 20

What does market segmentation help businesses do?

A) more effectively choose suppliers
B) better evaluate their performances
C) more accurately create a business plan
D) define customer needs and wants less precisely

Question 21

In 2004,T.D.Waterhouse tied one of its promotional campaigns to the Chinese New Year.The slogan used for the campaign was "Plan Now for Success during the Upcoming Year of the Monkey." Postcards were mailed to Asian-Canadians all over Canada.What was the segmentation base used for this strategy?

A) psychographic
B) Demographic
C) Geographic
D) Geodemographic

Question 22

Income,ethnic background,gender,and age are all examples of which type of segmentation bases?

A) demographic
B) geodemographic
C) socioeconomic
D) psychographic

Question 23

Which of the following businesses would be most likely to use family life-cycle segmentation?

A) wedding planners,couples-only resorts,and daycare centres
B) businesses that produce and market computer software and hardware
C) fast-food restaurants
D) business-to-business marketers

Question 24

For the launch of its new 1-series sports coupe in North America,BMW has targeted young urban male professionals with income in excess of $50,000 per year.BMW is basing its segmentation on which variable?

A) Demographic
B) Psychographic
C) usage occasion
D) geographic

Question 25

The Canuck Insurance Company has developed a website for Chinese Canadians.The site is written in both Mandarin and Cantonese and reflects the Chinese culture with its use of the traditional colours of red and gold.According to the text,why would Canuck have developed a site specifically targeted to Chinese Canadians instead of the Asian Canadian market?

A) The Asian Canadian market is homogeneous.
B) While Asian Canadians have substantial buying power,average household income is substandard.
C) Canuck Life has targeted one of the Asian Canadian submarkets.
D) Asian Canadians comprise the largest minority in Canada.

Question 26

A manufacturer of blankets knows heavy 100 percent wool blankets sell better in Winnipeg where the winters are harsh and that lighter-weight blankets sell better in Victoria where mild winters require fewer and lighter covers for the bed.Segmenting the market according to climate is an example of which of the following types of segmentation?

A) psychographic
B) demographic
C) lifestyle
D) geographic

Question 27

Which of the following is the term for the segmenting of markets based on the region of the country or the world,market size,market density (number of people within a certain unit of land),or climate?

A) demonstratable regionalization
B) geographic segmentation
C) community segmentation
D) geodemographic segmentation

Question 28

Alexa Ling,the new owner of a stationary shop,understands the need to segment her market.Available marketing research indicates there is much demand in the community for personalized gifts.Ling has few resources and cannot engage in intensive consumer research to precisely identify a segment.Which of the following strategies would you suggest she employ?

A) use a single-variable strategy because it offers an inexpensive alternative that would not require much experience to employ
B) develop an undifferentiated strategy,because it is not a large community and she could create a single marketing mix that would serve the entire community
C) use a multiple-variable segmentation strategy because it is easier to use than single-variable segmentation
D) employ a macro segmentation strategy because the data needed for such a strategy is both easy to get and fits her needs exactly

Question 29

Which of the following do marketers use to segment markets because the information is widely available and factors such as age and gender are often related to consumer purchasing and consumption behaviour?

A) demographics
B) benefits
C) psychographics
D) usage rates

Question 30

In Toronto,a radio station starts broadcasting in Russian for two hours daily to reach the 300,000 Russian-speaking people who live in Southern Ontario.What type of segmentation is the radio station using?

A) Geographic
B) Ethnic
C) usage rate
D) Socioeconomic

Question 31

Which of the following segmentation dimensions constitutes "demographic"?

A) household income
B) area of city lived in
C) Personality
D) rate of use

Question 32

Finding that having to pester mom to take them to get their film processed inhibited children from taking pictures,Kodak introduced a camera set that included a single-use camera packaged with an envelope to mail the film back to Kodak for developing.What type of segmentation did Kodak's segmentation plan use?

A) age
B) gender
C) ethnicity
D) occupation

Question 33

What is the term for the characteristics of individuals,groups,or organizations that marketers use to divide a total market into segments?

A) Differentiation guides
B) segmentation bases
C) responsiveness quotients
D) accessibility quotients

Question 34

Elle magazine is targeted to women under 30 years of age.The magazine's segmentation plan is based on which type of segmentation?

A) psychographic
B) demographic
C) geodemographic
D) sociocultural attributes

Question 35

You would expect to find more stores targeting hunters in Alberta than in Nova Scotia because hunting is a more popular pastime in western Canada than it is in the maritime provinces.A national chain of stores targeted to hunters would likely use which of the following segmentation when stocking merchandise in a particular store?

A) benefit
B) demographic
C) economic
D) geographic

Question 36

Women have been treated as second-class citizens by the sporting goods industry,but in 2002,sporting goods manufacturers and retailers began aggressively pursuing this market.Nike opened two women-only boutiques called Nike Goddess to test how receptive women are to its new merchandising concepts.Which type of demographic segmentation is Nike using?

A) usage rate
B) gender
C) Benefit
D) Lifestyle

Question 37

Listerine Essential Care toothpaste is designed to reduce plaque and to prevent gingivitis.Its ads state,"After age 35,3 out of 4 adults have some form of gum disease." The toothpaste is targeted to the market segment over the age of 35.This age variable that has been used to distinguish the market for this toothpaste is an example of which of the following?

A) Differentiation guide
B) segmentation base
C) perceived variable
D) accessibility quotient

Question 38

General Mills,Inc. ,is the owner of the Betty Crocker brand.The Betty Crocker catalogue sells cooking equipment and tableware and was initially targeted to women 45 and older.In 2001,General Mills decided to revamp the catalogue to reach women between the ages of 25 and 45.What demographic variables did General Mills use to segment its market?

A) gender and age
B) gender,age,benefit,and family life cycle
C) benefit and age
D) benefit and gender

Question 39

The Middleton Health Club has a new fitness program for expectant mothers.After placing flyers at the offices of area obstetricians,Middleton's class filled up within two days.Which segmentation success criterion was most influential in the success of this promotion?

A) identifiability
B) causality
C) measurability
D) responsiveness

Question 40

Almost all cell phones sold in North America are black.Almost all cell phones sold in Europe are colourful,and very few black phones are sold.A cell phone manufacturer knowing this information could use what type of segmentation when selling its phones internationally?

A) economic
B) geographic
C) benefit
D) demographic

Question 41

What is the process of grouping customers into market segments according to the different needs and wants sought from the product?

A) psychographic segmentation
B) Macrosegmentation
C) lifestyle segmentation
D) benefit segmentation

Question 42

NASCAR racing fans are some of the most diverse and loyal fans in the world.They will stand in the pouring rain,the freezing cold,or the blistering heat for hours to shake the hand and get the autograph of a NASCAR driver.These fans are not concentrated in any one area,but are dispersed throughout North America.A website designed to market NASCAR memorabilia would be most likely to be successful if it used which type of segmentation to determine its target market?

A) Geodemographic
B) Psychographic
C) Demographic
D) family life cycle

Question 43

The Grief Store sells keepsake urns,cremation urns,funeral jewellery,and books on how to cope with the grief caused by a loved one dying.Demographically,the Grief Store is probably using which type of segmentation?

A) Benefit
B) family lifestyle
C) Lifestyle
D) Motive

Question 44

What divides individuals into groups according to the way they spend their time,the importance of items in their surroundings,their beliefs,and socioeconomic characteristics?

A) macrosegmentation
B) life-cycle segmentation
C) lifestyle segmentation
D) Microsegmentation

Question 45

Kraft Foods plans to tailor different ads for different neighbourhoods in the same region.For example,viewers watching a cable show in a black neighbourhood in Toronto would see different ads during the same commercial breaks as whites living in a different neighbourhood.What type of segmentation does Kraft's strategy best exemplify?

A) systematic geographic
B) geodemographics
C) sociocultural
D) Lifestyle

Question 46

If you wanted to introduce a magazine devoted to providing information on how to live off the land in Canada,you would be likely to target Western Canadian men who have a strong need for individualism and limited government regulations.What type of segmentation would you probably use?

A) Sociocultural
B) situational
C) Attitudinal
D) Geodemographic

Question 47

When asked to name a brand of sports drink,most people will answer Gatorade,and some will respond with Powerade also.But people with diabetes who still need to replenish electrolytes lost during activity or illness cannot drink these sports drinks because they are high in sugar.As a result,a manufacturer has developed Champion Lyte,which contains no sugar.What type of segmentation has the manufacturer of Champion Lyte used to identify its market?

A) Demographic
B) benefit
C) Geodemographic
D) Psychographic

Question 48

An 18-year-old student might be a "party animal" living in a dorm.Another 18-year-old student might be a husband with a small child and a full-time job.If you were in charge of a marketing program aimed at these men,what segmentation technique would be the easiest to employ that might help you to distinguish between them?

A) age cohort analysis
B) gender
C) benefit
D) concentration

Question 49

Renegades Inc.is a startup company selling specialty sporting outerwear.The company has hired you,ace marketing consultant,to determine who their best target audience might be.Your research has determined that a prime target market for Renegades is people who enjoy bungee jumping,skydiving,and mountain climbing.What type of target market segmentation is this?

A) Behavioural
B) Demographic
C) lifecycle
D) Psychographic

Question 50

In Saskatoon,Saskatchewan,everyone who is anyone in society can't wait to get a copy of Soiree magazine.The magazine is targeted to the upper middle and upper classes in Saskatoon and features articles on how they work and play.What type of segmentation is the editor of Soiree magazine relying on?

A) Socioeconomic
B) Geodemographic
C) Benefit
D) income

Question 51

What is a segmentation approach that groups consumers based on their values,attitudes,and beliefs?

A) Behavioural
B) usage occasion
C) Psychographic
D) Geodemographic

Question 52

ThermaCare air-activated heat wraps are meant to be wrapped around sore muscles and joints.The product is advertised as a powerful pain reliever and a source of deep muscle relaxation.Its soothing warm can work at night while you sleep to restore your body.What type of segmentation is the manufacturer of ThermaCare heat wraps using?

A) Benefit
B) Functional
C) Geodemographic
D) Socioeconomic

Question 53

Ten Thousand Villages is a nonprofit retail store that sells gift items made by artisans from over 30 Different countries.This store provides employment to craftspeople in developing nations and markets their handiwork at a fair price.The store defines its market segment as people who believe in helping others and who feel good about helping others whenever possible.What type of segmentation does the store use?

A) Geodemographic
B) Psychographic
C) Demographic
D) Ethnic

Question 54

Which method clusters potential customers into neighbourhood lifestyle categories and is a combination of geographic,demographic,and lifestyle segmentation?

A) Microsegmentation
B) geodemographic segmentation
C) lifestyle segmentation
D) sociocultural clustering

Question 55

Reader's Digest magazine plans to send millions of people with different medical conditions,such as high blood pressure,or high cholesterol,a booklet filled with articles and prescription-drug ads,all about the very condition each subscriber has.Reader's Digest is applying benefit segmentation.Which of the following BEST describes benefit segmentation?

A) It is developed on the basis of what a product will do for the customer rather than on buyer characteristics.
B) It means simply choosing the most economical and beneficial demographic variable as a segmentation variable,to keep company costs low.
C) It does not permit marketing managers to build consumer profiles.
D) It is the strategy of building a competitive advantage over the competition.

Question 56

You are an advertising manager for a company that sells health and fitness equipment to upscale professionals between the ages of 25 and 45.Your firm advertises during drive time on easy listening radio stations and on A&E and the Discovery Channel.On which of the following are you most likely to segment this market?

A) Usage
B) stage of family life cycle
C) gender
D) Lifestyle

Question 57

What type of segmentation do magazines such as Martha Stewart Living,Better Homes & Gardens,and other magazines targeted to people who are interested in improving their personal spaces rely on?

A) Psychographic
B) family life cycle
C) usage rate
D) Demographic

Question 58

Which segmentation is based on personality,motives,and lifestyle?

A) Demographic
B) Psychographic
C) family life cycle
D) character

Question 59

Which of the following is an example of a psychographic variable?

A) Personality
B) Age
C) Ethnicity
D) income

Question 60

There are many furniture manufacturers.Tall Paul's Tall Mall is the only one that makes furniture to meet the needs of people who are over 6'6" tall.These people find furniture designed for average-sized people to be cramped and uncomfortable.What type of segmentation does Tall Paul's use?

A) Demographic
B) Psychographic
C) benefit
D) Geodemographic

Question 61

The public transportation system in a major city conducted a survey that revealed respondents could be assigned to one of four categories: (1)people who never used mass transit, (2)people who used mass transit in the past but not now, (3)people who used mass transit occasionally,and (4)people who used mass transit regularly.These groups have significantly different perceptions about transportation alternatives.What type of segmentation is this?

A) benefit
B) demographic
C) usage-rate
D) economic

Question 62

The debate over gay marriages caused a great deal of furor,but it has done little to deplete the importance of the affluent gay market to businesses.Pacific Clothing and Mitchell Gold are two companies that have implemented and maintained marketing mixes designed to meet the needs of lesbians and gays.To these companies and others,what are lesbians and gays?

A) a desirable perceived market
B) a desirable market base
C) a desirable target market
D) a desirable market sample

Question 63

What is a group of people or organizations for which another organization designs,implements,and maintains a marketing mix intended to meet the needs of that group,resulting in mutually satisfying exchanges?

A) a heterogeneous segment
B) a target market
C) an undifferentiated target
D) an aggregated market

Question 64

Train collectors Jack McCoy and Sandro Dias have decided to open a store that sells train memorabilia-everything from toy train sets to full-sized railroad signs.After 18 months in business,they have noticed that most of their sales are to the same small group of customers (about 40 people)even though they have records to show there are over 200 active train collectors within a 50-mile radius of their store.Their retailing experience is supportive of which of the following?

A) the rule of demand
B) the 80/20 principle
C) the optimizer principle
D) the min-max rule

Question 65

Ever since Hunter got his new Shell credit card,which gives him a 5 percent rebate on all purchases of Shell gas,he will buy gas only at stores that sell Shell gas.Shell introduced its credit card plan as a means of implementing what type of segmentation?

A) usage-rate
B) personality
C) lifestyle
D) motive

Question 66

Manufacturers of instant potato flakes sell to resellers,institutional food services,and movie production companies.(Instant potato flakes are typically used in movies when the scene calls for falling snow. )The manufacturers of instant potato flakes would most likely segment their market according to which of the following?

A) company characteristics
B) customer relationship objectives
C) financial terms
D) length of distribution channel

Question 67

Which of the following consider numerous,even unfamiliar,suppliers and solicit and analyze options?

A) satisficers
B) innovators
C) actualizers
D) optimizers

Question 68

After selecting a market for study,and choosing a basis for segmenting that market,what is the next step?

A) Design a marketing mix.
B) Implement and maintain a marketing mix.
C) Select target markets.
D) Select segmentation descriptors.

Question 69

Why are many retail firms interested in customer loyalty cards and programs?

A) Sales are equally divided among heavy,medium,and light users,but they all need slightly different products.
B) Roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product.
C) Roughly 80 percent of the profit comes from 20 percent of the sales.
D) Roughly 80 percent of a firm's customers are repeat business.

Question 70

Hotels that cater to frequent business travellers are using what type of segmentation?

A) psychographic
B) benefit
C) geographic
D) usage rate

Question 71

After dividing his catering customers into three segments based on income range and selecting segmentation descriptors,Kai Stein wrote out a description of each segment's size,expected growth,frequency of parties,and overall profit potential.What did Kai engage in?

A) Differentiating his market segments
B) positioning his products to his market segments
C) profiling and analyzing his segments
D) concentrating his marketing mix on the most profitable marketing segments

Question 72

The Hudson Company manufactures and installs above-ground swimming pools.When the company began in 1989,it completed a thorough examination of its business customers.It grouped the customers into three segments based on size,geographic region,and benefits sought.Would you recommend a new segmentation analysis this year?

A) Yes,I would recommend one be done regularly because of the rapidly changing nature of most markets.
B) Yes,a new analysis would be in order,but it should use Different bases to get some variety.
C) No,once every 20 years is about average.
D) No,consumer markets are not rapidly changing or developing like business goods markets.

Question 73

General Mills offers a deal where its cereal users can collect box tops and submit them to General Mills to earn money for their children's schools.This program,called the Box Tops for Education Program,is a means of changing light users into heavier users.In other words,it is a form of what type of segmentation?

A) personality
B) demographic
C) lifestyle
D) usage-rate

Question 74

Firms can be categorized by the type of purchasing strategy they use.Which of the following usually contact familiar suppliers and place an order with the first that can meet product and delivery requirements?

A) optimizers
B) experiencers
C) satisficers
D) actualizers

Question 75

Terri LaVoile operates a plumbing and electrical supply store.He has categorized its business customers by their purchasing strategy.LaVoile has found it much easier to serve and satisfy one group who usually recontact familiar suppliers and place an order immediately if product and delivery requirements are acceptable.What is this group?

A) adaptors
B) adopters
C) satisficers
D) innovators

Question 76

Business marketers focus on four broad market segments.Which of the following is one of those segments?

A) sellers
B) raw material suppliers
C) households
D) institutions

Question 77

Which of the following proposes that a minority of a firm's customers purchase a majority of the volume of the product?

A) the equity fallacy
B) the majority fallacy
C) the cannibalization rule
D) the 80/20 principle

Question 78

Sure Fit Inc.has begun a rebranding strategy to let customers know that it no longer only produces slipcovers,but also carries a line of rugs,windows treatments,and bedding.In this scenario,what are women with average annual household incomes of $60,000 or more?

A) its target market
B) its aggregated market
C) its market Differentiation
D) its market audience

Question 79

Which type of segmentation is Aeroplan,Air Canada's flyer loyalty program,based on?

A) lifestyles
B) usage rate
C) personality
D) motives

Question 80

Tower Fasteners developed a commanding position in the fastener industry by carrying in stock over 150,000 different types of fasteners.Tower's primary market is defined as companies with a need for specialized fasteners.All of the following are characteristics of the buying organization that Tower can use for segmentation EXCEPT which one?

A) company size
B) psychographic variables
C) geographic location
D) the method the company uses to make purchases