Question 1

For some consumer products such as cigarettes, soft drinks, and candy that have a low per-unit cost, income is often a more valuable segmentation variable than is population.

Accepted Answer

For low per-unit cost consumer products like cigarettes, soft drinks, and candy, population (age, gender, location, etc.) often provides more valuable segmentation insights than income, because these products are affordable across a wide range of income levels and their consumption is more influenced by demographic factors.

Question 2

India has the youngest demographic profile among the world's large nations.

Accepted Answer

According to the United Nations, India has a median age of 27 years, making it the country with the youngest demographic profile among the world's large nations.

Question 3

Procter & Gamble has identified a group of consumers in Europe who are willing to pay premium prices for pet food that will improve the health of their pets. This is an example of ________ segmentation.
A) demographic
B) psychographic
C) ethnic
D) behavioral
E) benefit

Accepted Answer

This is an example of benefit segmentation, where the consumers are segmented based on the benefits they seek from the product. In this case, the company has identified a group of consumers who are looking for pet food that will improve the health of their pets and are willing to pay a premium price for it.

Question 4

According to Euromonitor International, the global market for foods that offer health benefits is currently worth about ________ billion in annual sales.
A) $300
B) $400
C) $500
D) $600
E) $700

Accepted Answer

The answer of According to Euromonitor International, the global market...

Question 5

The law of disproportionality suggests that ________ percent of the company's menu or profits are accounted for by 20 percent of a firm's products or customers.
A) 50
B) 60
C) 70
D) 80
E) 90

Accepted Answer

The law of disproportionality, also known as the Pareto principle or the 80/20 rule, suggests that 80 percent of the company's menu or profits are accounted for by 20 percent of a firm's products or customers. Therefore, the best choice is D) 80.

Question 6

Marketers know that Russians consume a great deal of vodka. This type of market segmentation can be classified as:
A) demographic.
B) behavioral.
C) psychographic.
D) occupational.
E) benefit.

Accepted Answer

Behavioral segmentation is based on patterns of behavior shown by customers in relation to a product or service, including usage rates, brand loyalty, and buying patterns. The fact that Russians consume a great deal of vodka is a clear indication of their behavior towards the product, making this an example of behavioral segmentation.

Question 7

In response to increasing worldwide concerns about obesity, diabetes, and other food-related health issues, some of the world's largest food companies are developing new products. Nestlé and Groupe Danone SA have developed several health foods, which include all of the following, except:
A) Souvenaid.
B) Activia.
C) NutriChoice.
D) Nutraceuticals.
E) Medical Foods.

Accepted Answer

The answer of In response to increasing worldwide concerns about...

Question 8

Sushi, falafel, tandoori chicken or pizza is in demand in many parts of the world. This phenomenon can be due to the pluralization of consumption and segment simultaneity.

Accepted Answer

Pluralization of consumption refers to consumers seeking out a diverse range of goods and services, including those from different cultures and regions. Segment simultaneity refers to consumers having multiple interests and desires, such as enjoying both sushi and pizza. Therefore, it is true that these types of foods are in demand in many parts of the world due to these phenomena.

Question 9

The market for computers and related products can be divided into home users, corporate ("enterprise") users, and educational users.

Accepted Answer

This is because there are different types of users with different needs and preferences for computer products, including home users, corporate users, and educational users. Each market segment may have unique buying behaviors, priorities, and budgets.

Question 10

Global marketers must determine whether a standardized or an adapted marketing mix is required to best serve the wants and needs of the consumers.

Accepted Answer

Global marketers need to consider local market conditions and cultural differences to determine whether a standardized or adapted marketing mix will be most effective in meeting customer preferences and needs.

Question 11

In the music business, 5 percent of recording artists account for ________ percent of all artist-related Facebook engagement.
A) 55
B) 65
C) 75
D) 85
E) 95

Accepted Answer

According to the passage, "just 5% of recording artists account for a staggering 90% of all artist-related Facebook engagement." Therefore, the answer is E) 95.

Question 12

After segmenting potential markets in terms of a single demographic variable, "income," a company can reach the most affluent market by targeting fewer than ________ nations.
A) 10
B) 15
C) 20
D) 25
E) 30

Accepted Answer

The answer of After segmenting potential markets in terms of...

Question 13

By 2030, 30 percent of the U.S. population will be 65 years or older versus 13 percent today.

Accepted Answer

As of the latest projections, it is expected that by 2030, around 20% of the U.S. population will be 65 years or older, not 30%. The percentage increase is significant but not as high as the claim.

Question 14

Nutraceuticals are health food products, which are manufactured by:
A) Kraft Foods.
B) General Mills.
C) Campbell's soups.
D) Nestlé foods.
E) Gerber foods.

Accepted Answer

Nestlé is known to manufacture nutraceuticals through its subsidiary Nestlé Health Science. The other companies mentioned primarily focus on traditional food products, rather than specialized health food products.

Question 15

After convening worldwide employee conferences to study women's shaving preferences, Schick-Wilkinson Sword introduced a shaving system for women that features a replaceable blade cartridge.

Accepted Answer

The statement accurately describes Schick-Wilkinson Sword's introduction of a shaving system for women with a replaceable blade cartridge after studying women's shaving preferences.

Question 16

There is considerable income disparity between western and eastern provinces in China.

Accepted Answer

This is true. The provinces in the western part of China tend to have lower average incomes than those in the eastern part. This is due to a variety of factors, including differences in economic development, infrastructure, and government policies.

Question 17

Dove, a division of Unilever, traditionally targeted men and women with its Dove-branded skin care products.

Accepted Answer

Dove, a division of Unilever, has traditionally targeted women with its Dove-branded skin care products, focusing on real beauty and self-esteem. It was only later that Dove expanded its market to include products specifically designed for men with the launch of Dove Men+Care in 2010.

Question 18

Global market segmentation is based on the premise that companies should attempt to identify consumers in different countries who share similar needs and desires.

Accepted Answer

Global market segmentation involves identifying similar groups of consumers across different countries based on their needs and desires. This allows companies to tailor their marketing efforts and products to meet the specific preferences of each group, leading to more effective and efficient international marketing strategies.

Question 19

Campbell Soup is making significant inroads into Japan's $500 million soup market as time-pressed homemakers place a premium on convenience. This type of consumer segmentation by Campbell Soup is referred to as ________ segmentation.
A) demographic
B) occupational
C) psychographic
D) benefit
E) behavioral

Accepted Answer

The description of the market segment ("time-pressed homemakers place a premium on convenience") refers to the benefits that consumers are seeking, indicating that the segmentation is benefit-based.

Question 20

"Usage rates" and "user status" are important criteria for which segmentation variable?
A) demographic
B) occupational
C) psychographic
D) behavioral
E) benefit

Accepted Answer

Usage rates and user status are behavioral segmentation variables. Behavioral segmentation separates consumers based on their behavior, usage, and decision-making patterns. It includes variables such as usage rate, user status, loyalty status, and occasion segmentation.

Quiz 7: Segmentation, Targeting, and Positioning

For some consumer products such as cigarettes, soft drinks, and candy that have a low per-unit cost, income is often a more valuable segmentation variable than is population.

India has the youngest demographic profile among the world's large nations.

Procter & Gamble has identified a group of consumers in Europe who are willing to pay premium prices for pet food that will improve the health of their pets. This is an example of ________ segmentation.

According to Euromonitor International, the global market for foods that offer health benefits is currently worth about ________ billion in annual sales.

The law of disproportionality suggests that ________ percent of the company's menu or profits are accounted for by 20 percent of a firm's products or customers.

Marketers know that Russians consume a great deal of vodka. This type of market segmentation can be classified as:

In response to increasing worldwide concerns about obesity, diabetes, and other food-related health issues, some of the world's largest food companies are developing new products. Nestlé and Groupe Danone SA have developed several health foods, which include all of the following, except:

Sushi, falafel, tandoori chicken or pizza is in demand in many parts of the world. This phenomenon can be due to the pluralization of consumption and segment simultaneity.

The market for computers and related products can be divided into home users, corporate ("enterprise") users, and educational users.

Global marketers must determine whether a standardized or an adapted marketing mix is required to best serve the wants and needs of the consumers.

In the music business, 5 percent of recording artists account for ________ percent of all artist-related Facebook engagement.

After segmenting potential markets in terms of a single demographic variable, "income," a company can reach the most affluent market by targeting fewer than ________ nations.

By 2030, 30 percent of the U.S. population will be 65 years or older versus 13 percent today.

Nutraceuticals are health food products, which are manufactured by:

After convening worldwide employee conferences to study women's shaving preferences, Schick-Wilkinson Sword introduced a shaving system for women that features a replaceable blade cartridge.

There is considerable income disparity between western and eastern provinces in China.

Dove, a division of Unilever, traditionally targeted men and women with its Dove-branded skin care products.

Global market segmentation is based on the premise that companies should attempt to identify consumers in different countries who share similar needs and desires.

Campbell Soup is making significant inroads into Japan's $500 million soup market as time-pressed homemakers place a premium on convenience. This type of consumer segmentation by Campbell Soup is referred to as ________ segmentation.

"Usage rates" and "user status" are important criteria for which segmentation variable?