Deck 5: Market Segmentation

Question 1

) Identify the step that usually follows the 'divide markets on relevant dimensions' step.

A) Determine consumer needs and wants.
B) Decide segmentation strategy.
C) Design marketing mix strategy.
D) Develop product positioning.

Answer 1

D
Explanation: 'Develop product positioning' follows the 'Divide markets on relevant dimensions' step according to marketing segmentation analysis.

Question 2

When embarking on a new or modified marketing program, a company should conduct

A) an a priori analysis.
B) mixed contingency analysis.
C) a complete situational analysis.
D) feasibility surveys with individual prospects.

Answer 2

C
Explanation: A firm must do a complete situational analysis when embarking on a new or modified marketing program.

Question 3

In the case of segmentation for entirely new products, what approach may be more useful for determining key market dimensions?

A) An a priori approach
B) Post hoc approach
C) Empiricism approach
D) Cross-functional strategic plan approach

Answer 3

B
Explanation: In the case of segmentation for entirely new products, a post hoc approach may be useful for determining key market dimensions.

Question 4

The group or market segment that a company selects to focus on is called the

A) differentiated market.
B) customer profile.
C) target market.
D) business group.

Question 5

Identify the approach in which the marketing manager has decided on the appropriate basis for segmentation in advance of doing any research on a market?

A) A priori segmentation approach
B) Post hoc segmentation approach
C) Empiricism approach
D) Psychographic approach

Question 6

) Market segmentation, when analyzed as a six-stage process, includes all of the following stages, except the

A) delineation of the firm's current situation.
B) determination of the consumer's needs and wants.
C) development of product positioning strategies.
D) design of the sales strategies.

Question 7

Which of the following statements about market segmentation is true?

A) According to the model of market segmentation analysis, the process usually begins with deciding segmentation strategy.
B) Market segmentation analysis proceeds product positioning, the cornerstone of sound market planning.
C) The logic of market segmentation is quite simple and is based on the idea that a single product item can seldom meet the needs and wants of all consumers.
D) According to the model of market segmentation analysis, the process begins with design marketing mix strategy.

Question 8

Which of the following is true about a firm's decision to "mass market" a product?

A) This decision does not require a market segmentation analysis.
B) This decision should be reached only after a market segmentation analysis has been conducted.
C) This decision requires that a company selects on a target market first.
D) This decision can be reached only after the firm develops a marketing mix.

Question 9

Which of the following statements about market segmentation is not true?

A) Market segmentation is the process of dividing markets into groups of similar customers.
B) The decision to mass market a product does not require any market segmentation analysis.
C) Generally, the first step in market segmentation is to delineate firm's current situation.
D) Consumers are grouped on the basis of one or more similarities and treated as a homogeneous segment of a heterogeneous total market.

Question 10

What often brings about an investigation of consumer needs and wants for new or modified products and services?

A) Organizational objectives
B) Organizational portfolio
C) New technology
D) Revised marketing plan

Question 11

The industry in which the firm operates specifies the boundaries of a firm's

A) need satisfaction activities.
B) progress in research and development.
C) financial conditions.
D) reputation in the market.

Question 12

MicroBionics manufactures digital hearing aids, which unlike analog hearing aids, can be programmed to mask out external noise. The company has determined that its competitive advantage lies in its product, while its weakness is the associated manufacturing costs. Target market opportunities exist within the maturing baby boomer segment. One challenge lies in the existence of a competing, well-established brand called BelTone. In terms of the market segmentation process, MicroBionics has completed which step?

A) Development of product positioning strategy.
B) Delineation of firm's current position.
C) Division of market on relevant segmentation variables.
D) Design of marketing mix strategy.

Question 13

Consumer attitudes, preferences and benefits sought that are determined through marketing research

A) are commonly used for segmentation purposes.
B) help to implement and control promotional strategies.
C) need not always be aligned with the organization's overall objectives.
D) benefit the business by helping them in their financial planning.

Question 14

All of the following are important questions to be considered during the stage of "dividing markets on relevant dimensions" except

A) should the segmentation be a priori or post hoc?
B) how does one determine the relevant dimensions or bases to use for segmentation?
C) what is the best marketing mix and marketing strategy for the various segments?
D) what are some bases for segmenting consumer and organizational buyer markets?

Question 15

At a strategic level, consumer needs and wants are usually translated into

A) advertising concepts.
B) marketing needs.
C) primary data.
D) operational concepts.

Question 16

A complete situational analysis when embarking on a new or modified marketing program aids a firm in all of the following ways, except

A) determining objectives, opportunities, and constraints to be considered when selecting target markets.
B) developing marketing mixes.
C) giving a clear idea of the amount of financial and other resources that will be available for developing and executing marketing plans.
D) developing a long-term, departmental objective within the organization.

Question 17

The primary reason for studying _____ is to provide bases for effective segmentation, and a large portion of marketing research is concerned with segmentation.

A) consumers and their relationship with the organization
B) employee relationship and organizational buyer behavior
C) consumer and organizational buyer behavior
D) organizational buyer behavior and employer relationship

Question 18

Successful marketing strategies depend on discovering and satisfying

A) employee union demands.
B) the total distribution cost.
C) consumer needs and wants.
D) management objectives.

Question 19

The logic of market segmentation is based on the idea that _____ can seldom meet the needs and wants of all consumers.

A) marketers and sales people
B) marketing communication
C) brand value
D) single product items

Question 20

The process of dividing a market into groups of similar consumers and selecting the most appropriate group(s) for the firm to serve is called

A) marketing concept.
B) marketing development.
C) market segmentation.
D) marketing communication.

Question 21

A company is entering the deodorant market. Its marketing manager decides that that the market should be divided on the basis of whether people are nonusers, light users, or heavy users of deodorants. The company is using which form of segmentation?

A) A priori segmentation
B) Empiricism segmentation
C) Post hoc segmentation
D) A posteriori segmentation

Question 22

What are the two most commonly used approaches for segmenting markets?

A) Benefit segmentation and psychographic segmentation.
B) Advertising segmentation and financial segmentation.
C) Nonprofit segmentation and profit segmentation.
D) Marketing segmentation and geodemographic segmentation.

Question 23

Post hoc segmentation is an approach in which people are grouped into segments on the basis of

A) demographic approach.
B) psychographic profiles.
C) market-orientation.
D) research findings.

Question 24

Jan Karon sold more than 10 million copies of her novels about Mitford, a fictitious town in North Carolina. Karon's series of books focus on small town life as seen through the eyes of an Episcopal priest who is honest and lovable and who believes strongly in God and the promotion of godly virtues. Viking Press, publisher of the books, initially determined the market segmentation strategy to use for the Mitford books was to target people who expressed a desire for Christian-value-based entertainment and who shopped at Christian bookstores. It conducted marketing research to determine the sizes and other characteristics of these markets across the country. Viking Press used a(n) _____ segmentation approach.

A) a priori
B) a posteriori
C) post hoc
D) empiricism

Question 25

What does "AIO" stand for?

A) Activities, interest, and organizations
B) Administration, information, and organizations
C) Activities, interest, and opinion
D) Administration, information, and opinion

Question 26

Lifestyles are measured by asking customers about their

A) financial soundness.
B) activities, interests, and opinions.
C) educational backgrounds.
D) influence on their immediate society.

Question 27

What segmentation approach is being used if a marketing manager decides on the appropriate basis for segmentation in advance of doing any research on a market?

A) Post hoc segmentation approach
B) Maintainable approach
C) A priori segmentation approach
D) Manageable approach

Question 28

A company interviews people concerning their attitudes regarding vacations. These people are then grouped according to their responses. The size of each of these groups and their demographic and psychographic profiles are then determined. Which form of segmentation is the company using?

A) A priori
B) A posteriori
C) Post hoc
D) Synthetic proposition

Question 29

Benefit segmentation focuses on the benefits sought by the consumer, whereas psychographic segmentation focuses on

A) consumer lifestyles.
B) mass merchandise.
C) relationship marketing.
D) intensive distribution.

Question 30

Benefit segmentation is clearly a

A) demographic approach.
B) behavioral approach.
C) market-oriented approach.
D) consumer-lifestyles approach.

Question 31

World Explorer Cruises advertises that it sells "Cruises for your heart, mind, and soul. Even better, it comes in a pint-sized budget!" What segmentation is the cruise line using?

A) Demographic segmentation
B) Geodemographic segmentation
C) Geographic segmentation
D) Benefit segmentation

Question 32

Goo Goo Clusters has been a favorite candy for many Southerners for years. The caramel, peanut, marshmallow, and chocolate confectionary are distributed through retail outlets in the South-Eastern regions of America. Its manufacturer recently started selling the candy in certain mail-order catalogs. Through previous research and experience, the marketing manager was able to use the _____ segmentation approach to gather information that would help determine the appropriately targeted catalog for Goo Goo Clusters candy.

A) a priori
B) a posteriori
C) post hoc
D) empiricism

Question 33

_____ attempts to measure consumer value systems and consumer perceptions of various brands in product class.

A) Benefit segmentation
B) Psychographic segmentation
C) Demographic segmentation
D) Geodemographic segmentation

Question 34

'The Greedy Hand' is a book on the U.S. income tax system. Its publisher has targeted the book at people who hold Libertarian political beliefs and who listen to conservative radio talk shows. The publisher has used which segmentation base?

A) Benefit
B) Behavior
C) Psychographic
D) Person/situation

Question 35

Jan Karon has sold more than 10 million copies of her first six novels about Mitford, a fictitious town in North Carolina. Karon's series of books focus on small town life as seen through the eyes of an Episcopal priest who is honest and lovable and who believes strongly in God and the promotion of godly virtues. Viking Press, publisher of the books, initially determined the market segmentation strategy to use for the Mitford books was to target people who expressed a desire for Christian-values-based entertainment and who shopped at Christian bookstores. After copies of the first book in the Mitford series sold out extremely quickly, Viking did research and learned the Mitford series has the same appeal as Andy Taylor and Mayberry does to a mainstream audience. As a result, the books were made available to chains like Waldenbooks and Barnes & Nobles as well as independent book sellers. Viking used ______ approach to its segmentation strategy for subsequent titles in the series.

A) a priori
B) synthetic proposition
C) post hoc
D) a posteriori

Question 36

What is post hoc segmentation?

A) An approach in which the marketing manager has decided on the appropriate basis for segmentation in advance of doing any research on a market.
B) An approach in which people are grouped into segments on the basis of research findings.
C) Marketing managers finding a solution to an advertising and promotion problem.
D) Basis of a solution to challenges created by cross-functional teams within organizations.

Question 37

What does psychographic segmentation focus on?

A) Qualitative research
B) Quantitative research
C) Test marketing
D) Consumer lifestyles

Question 38

An entrepreneur has developed a self-service soda-bottling machine. Customers can fill their own plastic soda bottles with 18 regular and diet flavors by placing empty bottles under a nozzle, depositing coin, and punching a series of buttons. The machine dispenses the requested soda and a bar-coded dietary information sticker, which the customer places on the bottle. The entrepreneur must now determine where to locate the machines by studying the market and then grouping outlets on the basis of her research findings. This is an example of which segmentation approach?

A) psychographic segmentation
B) empiricism segmentation
C) benefit segmentation
D) post hoc segmentation

Question 39

Real world segmentation has followed one of two general patterns, an a priori segmentation approach and a _____ approach.

A) post hoc segmentation
B) empiricism segmentation
C) benefit segmentation
D) psychographic segmentation

Question 40

Consumers today are highly pressed for time. They're spending more time in their cars and more time eating fast food while they are driving. To such a consumer, the cup holder is of vital importance. Car manufacturers are designing cup holders that use gyroscopes to keep the cup straight and the contents from sloshing out. This type of product development is aimed at a market that can be readily defined through which segmentation?

A) Demographic
B) Behavior
C) Benefit
D) Person/situation

Question 41

As consumers, _____ are predictable; they choose familiar products and established brands. They favor American products and are generally loyal customers.

A) strivers
B) makers
C) believers
D) survivors

Question 42

Consumers who are trendy and fun loving and are motivated by achievement can be best classified as

A) strivers.
B) makers.
C) believers.
D) survivors.

Question 43

L'Oreal introduced a new L'Oreal hair care product for kids called Fast Dry Shampoo. It was guaranteed to "dry in a flash!" Any parent who had ever put his or her child to bed with wet hair and woke the next morning to find the hair totally unmanageable, or had a child late for school because the child wouldn't leave the house with wet hair is the target market for this product. L'Oreal is using which segmentation for its new shampoo?

A) Psychographic
B) Geodemographic
C) Behavior and situational
D) Demographic and benefits sought

Question 44

The best-known psychographic segmentation called _____ was originally developed in the 1970s.

A) AIO
B) VALS
C) ZIP
D) PRIZM

Question 45

_____ are successful, sophisticated, take-charge people with high self-esteem.

A) Innovators
B) Survivors
C) Thinkers
D) Believers

Question 46

What does "VALS" stand for?

A) Values and linkages
B) Values and lifestyles
C) Values and liabilities
D) Values and leverage

Question 47

The belief underlying the _____ approach is that the benefits that people are seeking in consuming a given product are the basic reasons for the existence of true market segments.

A) benefit segmentation
B) online marketing
C) post hoc segmentation
D) a priori segmentation

Question 48

All of the following are basic segments of benefit segmentation identified by Haley in context to the toothpaste market except

A) principal benefit sought.
B) replacement cost.
C) demographic strengths.
D) lifestyle characteristics.

Question 49

A firm that segments its consumer buyer market on the basis of product awareness, and interest, and on their income is using which of the following segmentation bases?

A) Geographic, and demographic
B) Thoughts and feelings, and demographic
C) Behavior, and social
D) Demographic, and social

Question 50

The consumers who are change leaders and are most receptive to new ideas and technologies are the

A) innovators.
B) survivors.
C) thinkers.
D) believers.

Question 51

A manufacturer of a new biodegradable cat litter learned from its research that a lot of cat owners were not buying ordinary litter because of the difficulty in disposing the used clay-based litter. It cannot be flushed due to the build up in pipes, and certain municipalities have decreed that cat litter is a hazardous waste and must be disposed of in a specified matter. Cat owners want litter that is easily disposed of and more absorbent than newspaper, which is a common make-do method. The cat manufacturer has used which of the following segmentation approaches to identify the stated information?

A) Benefit segmentation
B) Psychographic segmentation
C) A priori segmentation
D) Post hoc segmentation

Question 52

Much of the data gathered by the media research company Arbitron, has determined that one radio station has a strong listener base composed of males between the ages of 18 and 25, while another has its strongest appeal to females between the ages of 25 and 40. The company is using which of the following segmentation bases?

A) Person/situation
B) Demographics
C) Psychographics
D) Social

Question 53

A handbag manufacturer has segmented its market according to how women use them. For instance, some women want large handbags so they can carry everything they could possibly need. Other women want small, attractive handbags as accessories for their outfits. Some women want handbags with lots of pockets to help them better organize. The purse manufacturer uses which segmentation base?

A) Thoughts and feelings
B) Geographic
C) Person/situation
D) Geodemographic

Question 54

Which of the following statements about psychographic segmentation is true?

A) According to the psychographic information provided by VALS, the group in the U.S. with the highest incomes is fulfilled.
B) Psychographic segmentation typically follows the a priori model of segmentation.
C) Psychographic segmentation focuses on the benefits sought by the consumer.
D) Psychographic segmentation focuses on consumer lifestyles.

Question 55

What does the term "horizontal dimension" in VALS refer to?

A) Secondary needs
B) Resources
C) After-sale service
D) Primary motivation

Question 56

Research studies showed Procter & Gamble that vacuum brick-packs of coffee sell much better in the urban uptown than coffee in cans. As a result, Procter & Gamble repackaged their Folgers coffee for the urban uptown and developed an advertising campaign to market them to the region. Sales of Folgers coffee in this region increased by 32 percent. In this example, Procter & Gamble used which segmentation to market its coffee?

A) Demographics
B) Psychographics
C) Person/situation
D) Geodemographic

Question 57

A furniture manufacturer sells sofas in the broad price range of $500 to $10,000. The sofas can be customized to fit into small urban efficiency apartments or large suburban dwellings with huge family rooms. What kind of segmentation bases would the furniture manufacturer be most likely using?

A) Benefit and source loyalty
B) Geographic and demographic
C) Psychographic and geographic
D) Person/situation and attributes desired

Question 58

Consumers who buy from the Crossing Pointe retail catalog are described as between the ages of 35 and 50, with average incomes of more than $50,000, and buy on average $95 worth of merchandise with each order they place with the retailer. What segmentation bases are being described here?

A) Social and demographic
B) Behavior and geodemographic
C) Person/situation
D) Demographic and behavior

Question 59

According to VALS™, _____ are the type of consumers that have few resources, are more concerned with safety and security, and do not show a very strong primary motivation.

A) Achievers
B) Strivers
C) Makers
D) Survivors

Question 60

Thinkers, according to the VALS^TM model, are motivated by

A) self-expression.
B) ideals.
C) achievement.
D) image.

Question 61

Which of the following observations about geodemographic segmentation is true?

A) It does not identify specific individuals of households within a market.
B) It creates classifications of actual, addressable, mappable neighborhoods where consumers live and shop.
C) It is based on the assumptions that consumers in particular neighborhoods are similar in many respects.
D) It identifies consumer needs and wants and to satisfy them by providing products and services with the desired benefits.

Question 62

Let's say you wanted to build a bowling alley in Canada. Market research shows you that western Canadians enjoy bowling and similar pastimes significantly more than those in eastern Canada. By locating your alley in the western province of Alberta, you would have used a _____ segmentation strategy.

A) benefit
B) behavior
C) psychographic
D) geodemographic

Question 63

What assumption is the PRIZM NE system based on?

A) Degree to which consumers are active is directly related to occupational and educational factors.
B) Consumers in particular neighborhoods are similar in many respects and that the best prospects are those who actually use a product or other consumers like them.
C) Implementing and control of the marketing plan requires segmentation based on psychographic lines.
D) Achievement oriented targets need to be made in order to increase sales of an organization.

Question 64

Consumers driven by knowledge and principles are motivated primarily by

A) ideals.
B) achievement.
C) self-expression.
D) success.

Question 65

Pepsi-Cola and Coca Cola have come up with their own brands of bottled water and each claim that their brand is better than the other. The positioning strategy used here is

A) is based on consumer mapping.
B) in terms of superior product users.
C) relative to a product class.
D) positioned directly against particular competitors.

Question 66

What does geodemographic segmentation identify?

A) The belief that the benefits people are seeking in consuming a given product are the basic reasons for the existence of true market segments.
B) Specific households in a market by focusing on local neighborhood geography to create classifications of actual, addressable, mappable neighborhoods where people live and shop.
C) The type of lifestyles, which are measured by asking consumers about their activities, interests, and opinions.
D) Primary motivation, and whether consumers are driven by ideals, achievement and/or self-expression.

Question 67

The basis of _____ segmentation is that consumers in particular neighborhoods are similar in many respects

A) benefit
B) psychographic
C) person/situation
D) geodemographic

Question 68

Claritas PRIZM NE is most closely associated with _____ segmentation.

A) demographic
B) psychographic
C) person/situation
D) geodemographic

Question 69

When Post Grape-Nuts cereal ads show the cereal being used as a topping on yogurt, served hot as an alternative to oatmeal, and as a snack food, Post is using a positioning strategy

A) based on superiority to competitive products.
B) in terms of superior product users.
C) relative to a product class.
D) by use or application.

Question 70

Consumers driven by a desire for social or physical activity, variety, and risk taking are motivated primarily by

A) ideals.
B) achievements.
C) self-expression.
D) self-motivation.

Question 71

The slogan used by Miele vacuum cleaners is "Anything else is a compromise." The manufacturer of Miele vacuum cleaners uses positioning

A) based on superiority to competitive products.
B) in terms of use or application.
C) in terms of particular types of product users.
D) relative to a product class.

Question 72

Identify the system that classifies every U.S. neighborhood into one of 15 groups. Each group is further divided into 3 to 6 segments, with a total of 66 distinct segments in the system. Each group and segment is based on zip codes.

A) AIO
B) VALS™
C) ZIP
D) PRIZM NE

Question 73

The PRIZM NE system includes maps of different areas that

A) rank neighborhoods on their potential to purchase specific products or services.
B) group consumers in particular countries that are similar in many respects.
C) help implement and control the strategic plan of that area.
D) are used for slotting allowances.

Question 74

Consumers driven by a goal of demonstrating success to their peers are motivated primarily by

A) ideals.
B) achievements.
C) role models.
D) self-expression.

Question 75

The 2002 ad campaign for Carnival cruises emphasized the number of activities offered; including hang gliding, mountaineering, hiking, and scuba diving that people taking any of the Carnival line cruises could participate in. The cruise line was trying to negate the concept that all people do on a cruise was eat and sleep as well as the idea that only older, more conservative people take cruises. Carnival's ads would appeal most to which of the following consumers?

A) Survivors
B) Believers
C) Experiencers
D) Thinkers

Question 76

According to the PRIZM NE social group U1, the "urban uptown" group consists of all of the following segments, except

A) young digerati.
B) money and brains.
C) bohemian mix.
D) survivors.

Question 77

What does "PRIZM NE" stand for?

A) Potential Ratings for Industries by Zones and Markets - New Edition
B) Predicted Ratings Index for Zonal Management - North East
C) Potential Ranking Index of Zip Markets - New Evolution
D) Permanent Reauthorization Integrated Zooming Markets - New England

Question 78

The ad for Canac kitchen cabinets states, "For an exceptional look in cabinetry that you won't find anywhere else, buy Canac cabinets." This is an example of positioning

A) based on superiority to competitive products.
B) in terms of superior product users.
C) relative to a product class.
D) by use or application.

Question 79

Each PRIZM NE cluster is based on zip codes, demographic information from the U.S. census, and information on _____, media usage, and lifestyle preferences to create profiles of the people who live in specific neighborhoods.

A) product usage
B) resale value
C) word-of-mouth publicity
D) odd-even pricing

Question 80

Why do marketers use PRIZM NE?

A) To satisfy their consumers with better products.
B) To better understand consumers in various markets.
C) To market a product faster.
D) To market their products and get better profit.