Question 1

Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper Inc. segments its market based on:
A) customer size.
B) psychographics.
C) demographics.
D) use of product.
E) geographic location.

Accepted Answer

International Paper Inc. segments its market based on the use of the product, as they market newsprint to newspaper publishers for printing and to glass manufacturers for packing.

Question 2

If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is:
A) lifestyle.
B) motives.
C) personality.
D) benefit expectations.
E) personality attributes.

Accepted Answer

Segmenting a market based on the motives or reasons for purchasing a particular product is called psychographic segmentation, which focuses on understanding the psychological characteristics and lifestyle of the target market. Therefore, the primary segmentation variable in use would be motives.

Question 3

Alli Inc. segments its diet pills based on those who have morning cravings, those who tend to overeat near the end of the day, those who need all day long appetite suppression, and those who want appetite control and more energy. This is an example of market segmentation based on variables of:
A) demographics.
B) lifestyles.
C) psychographics.
D) behavior.
E) personality characteristics.

Accepted Answer

This is an example of behavioral segmentation, as it categorizes consumers based on their eating habits and needs related to appetite control and energy.

Question 4

Which of the following variables would most likely be used to segment a business market?
A) An attitude of the company's CEO
B) The geographic location of the company
C) The lifestyle of the company's buying agent
D) Net income generated by the company
E) Common opinions of the company's employees

Accepted Answer

Business markets are often segmented by geographic location as businesses in different regions may have different needs and preferences. The other options, such as the attitude of the CEO or the lifestyle of the buying agent, may be important considerations in the selling process, but are not effective segmentation variables for the overall market. Net income generated by the company and the common opinions of employees are also not effective segmentation variables as they do not necessarily reflect the needs and preferences of the business as a whole.

Question 5

A widely used system for classifying individuals on the basis of lifestyle is:
A) VALS.
B) PRIZM.
C) CMSA.
D) LIFO.
E) Prospect Zone.

Accepted Answer

VALS (Values, Attitudes, and Lifestyles) is a well-established system for classifying individuals based on their psychological traits, values, and behavior patterns. It was developed by SRI International and is widely used by marketers to segment and target specific consumer groups. Therefore, A is the best choice.

B) PRIZM is another popular system for classifying consumers based on their zip codes and demographic characteristics, not lifestyle explicitly.

C) CMSA and D) LIFO are not widely used systems for classifying individuals on the basis of lifestyle.

E) Prospect Zone is not a known classification system for lifestyle.

Question 6

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment markets.
A) consumer
B) business
C) government
D) international
E) most target

Accepted Answer

The segmentation variables mentioned in the statement are typically used in business (B2B) markets, rather than in consumer (B2C), government (B2G), or international markets. While some of these variables may also be used in other types of markets, such as geographic location in international markets or customer size in government markets, the combination of all four variables is most commonly associated with B2B market segmentation. "Most target" is not a valid option.

Question 7

Yvonne and Garret are looking at information about how their organization's products could fit potential customers' needs. This information deals with demographic characteristics, product benefits sought, lifestyles, geographic factors, brand preferences, and usage rates. They are most likely looking at:
A) the sales force survey results.
B) the results of sales forecasting.
C) a market trend analysis.
D) a market segmentation discrimination analysis.
E) a market segment profile.

Accepted Answer

Yvonne and Garret are most likely looking at a market segment profile, which includes information about demographic characteristics, product benefits sought, lifestyles, geographic factors, brand preferences, and usage rates for potential customers. This information can help the organization identify and target specific market segments that may be interested in their products.

Question 8

When using personality characteristics as a market segmentation variable, marketers generally:
A) conduct personality assessments of their potential target market to determine which personality characteristics they possess.
B) use research developed by clinical psychologists to determine which personality characteristics consumers using their products are most likely to have.
C) use generic characteristics that all members of the population have.
D) use a positively viewed characteristic they assume much of their target market has or would like to have.
E) conduct a series of focus groups to determine both the positive and negative characteristics members of their target market are perceived to have.

Accepted Answer

When using personality characteristics as a market segmentation variable, marketers generally use a positively viewed characteristic they assume much of their target market has or would like to have. This is because they want to appeal to their target market's aspirations and desires. Conducting personality assessments, using research developed by clinical psychologists, or using generic characteristics are not practical options for marketers. Conducting focus groups to determine positive and negative characteristics can be helpful in understanding the target market, but the question specifically asks for using personality characteristics as a segmentation variable.

Question 9

Crest toothpaste is available in several different versions, such as Crest Whitening, Crest Tartar Control, Crest Whitening with mouthwash, and Crest Total Effects. Given these different variations of the product, it appears that the marketers of Crest are segmenting the market by using segmentation.
A) psychographic
B) product usage
C) benefit
D) end-purpose
E) advantage

Accepted Answer

The different versions of Crest toothpaste are designed to offer specific benefits, such as whitening or tartar control, indicating that the market is segmented based on the benefits consumers seek.

Question 10

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is:
A) motive.
B) social class.
C) personality.
D) stage in family life cycle.
E) lifestyle.

Accepted Answer

Lifestyle includes people's behaviors, activities, interests, and opinions, which can contribute to their consumption patterns and brand preferences. Motive refers to the driving force behind people's behavior. Social class and stage in family life cycle are demographic variables, while personality is an individual's unique set of characteristics, traits, and behaviors.

Question 11

After an organization has determined which of the many segmentation variables it will use, the next Step in the target market selection process is:
A) evaluating each of the relevant market segments.
B) selecting the specific target markets.
C) reviewing the appropriate marketing strategy.
D) analyzing the interaction between segmentation variables.
E) developing market segment profiles.

Accepted Answer

Developing market segment profiles is the next step after determining segmentation variables, as it involves creating detailed descriptions of the segments to better understand their needs and preferences.

Question 12

describe the similarities among potential customers within a market segment and explain the differences among people in different market segments.
A) Market segmentation variables
B) Market segment profiles
C) Segmentation grids
D) Market differentiation indexes
E) Market concentrations

Accepted Answer

Market segment profiles describe the similarities among potential customers within a market segment, such as demographic, geographic, psychographic, and behavioral characteristics. On the other hand, market differentiation indexes or concentration measures describe the differences between various market segments based on measures like market size, growth rate, and purchasing power. Segmentation grids are visual tools used to analyze and compare different market segments based on two or more criteria. Market segmentation variables are the criteria used to divide a market into distinct groups.

Question 13

Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on:
A) behavioristic variables.
B) benefits.
C) lifestyles.
D) psychographic variables.
E) demographic variables.

Accepted Answer

Segmenting the market based on heavy, moderate, and light drinkers is an example of behavioristic variables, which is a type of market segmentation based on customer behavior towards a product.

Question 14

Bethlehem Steel Corp. provides steel for a variety of uses to its various customers. Customers have different needs for the steel and thus Bethlehem has to prepare the raw steel differently depending on how customers will use it in their production processes. The primary business segmentation variable in this example is:
A) geographic location.
B) customer size.
C) product use.
D) customer importance.
E) organization classification.

Accepted Answer

The primary business segmentation variable is "product use" because Bethlehem Steel Corp. tailors its steel preparation based on how customers will use it in their production processes.

Question 15

Which of the following is an example of a behavioristic segmentation variable?
A) Family size
B) Climate
C) Age
D) Usage rate
E) Personality characteristics

Accepted Answer

Usage rate is a behavioristic segmentation variable because it focuses on the actual behavior of the consumer towards the product or service, such as the frequency of usage, the amount of usage, and the loyalty towards the product or service.

Question 16

The three most commonly used psychographic segmentation variables are:
A) personality, perception, and learning.
B) personality, perception, and behavior.
C) motives, attitudes, and lifestyles.
D) attitudes, personality, and perception.
E) personality, motives, and lifestyles.

Accepted Answer

The answer of The three most commonly used psychographic segmentation...

Question 17

Dell Inc. segments its business markets into small business, corporate, government agencies, K-12 schools, and higher education institutions. The primary segmentation variable used in this example is:
A) geographic location.
B) type of organization.
C) secondary product use.
D) customer size.
E) market potential.

Accepted Answer

The primary segmentation variable used by Dell Inc. in this example is the "type of organization," as they are categorizing their market based on different types of organizations such as small businesses, corporate, government agencies, K-12 schools, and higher education institutions.

Question 18

The Gap Inc. has recently produced a new line of athletic wear that closely competes with a designer label in its quality, utility, and appearance. However, it is about half the cost of the designer brand. Product managers for The Gap line plan to use price sensitivity, brand loyalty, and end use as variables to segment their target market. These are all variables for market segmentation.
A) psychographic
B) usage
C) demographic
D) lifecycle
E) behavioristic

Accepted Answer

The answer of The Gap Inc. has recently produced a...

Question 19

Seventh Generation is a company producing products that limit the amount of negative impact on the environment. Their product line includes dishwashing liquid, toilet paper, paper towels, baby wipes, and laundry detergent, to name a few. Seventh Generation is now interested in producing a new line of clothing; mostly t-shirts, shorts, and long pants for both men and women. Their research indicates that they should use psychographic segmentation in their marketing strategy. Which group of segmentation variables will be implemented by Seventh Generation?
A) Geographic location
B) Age, sex, and socioeconomic characteristics
C) Social class variables
D) Personality characteristics, motives, and lifestyles
E) Family life cycle, social class, and religion

Accepted Answer

Psychographic segmentation involves dividing a market based on personality characteristics, motives, and lifestyles, which aligns with Seventh Generation's interest in using psychographic segmentation for their new clothing line.

Question 20

Demographic variables such as income and occupation, as well as how people spend their time and the importance of things in their surroundings, are all factors considered in segmentation.
A) behavioristic
B) social class
C) lifestyle
D) personality
E) family life cycle

Accepted Answer

Lifestyle segmentation considers factors such as income, occupation, time spent, and the importance of surroundings, which are all mentioned in the given question.

Quiz 5: Target Markets: Segmentation and Evaluation

Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper Inc. segments its market based on:

If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is:

Alli Inc. segments its diet pills based on those who have morning cravings, those who tend to overeat near the end of the day, those who need all day long appetite suppression, and those who want appetite control and more energy. This is an example of market segmentation based on variables of:

Which of the following variables would most likely be used to segment a business market?

A widely used system for classifying individuals on the basis of lifestyle is:

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment markets.

When using personality characteristics as a market segmentation variable, marketers generally:

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is:

After an organization has determined which of the many segmentation variables it will use, the next Step in the target market selection process is:

describe the similarities among potential customers within a market segment and explain the differences among people in different market segments.

Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on:

Which of the following is an example of a behavioristic segmentation variable?

The three most commonly used psychographic segmentation variables are:

Dell Inc. segments its business markets into small business, corporate, government agencies, K-12 schools, and higher education institutions. The primary segmentation variable used in this example is:

Demographic variables such as income and occupation, as well as how people spend their time and the importance of things in their surroundings, are all factors considered in segmentation.