Question 1

Delta, a Canadian video game manufacturer, targets teens between the ages of 13 and 18, providing free game trials and applications. The firm's marketing approach exemplifies segmentation.

Accepted Answer

Delta's marketing approach targets a specific age group, which is an example of segmentation based on age and life-cycle.

Question 2

Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called .

Accepted Answer

User status segmentation divides the market based on the different types of users, such as nonusers, ex-users, potential users, first-time users, and regular users.

Question 3

Creating market offerings that best serve targeted customers is called differentiation.

Accepted Answer

Differentiation involves creating unique market offerings that cater specifically to the needs and preferences of targeted customer segments, setting them apart from competitors.

Question 4

segmentation factors divide buyers into different groups based on social class, lifestyle, or personality characteristics.

Accepted Answer

Psychographic segmentation divides buyers based on social class, lifestyle, or personality characteristics.

Question 5

Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy?

Accepted Answer

The correct order is market segmentation, market targeting, differentiation, and positioning. This sequence involves identifying distinct groups within a market, selecting which groups to target, differentiating the product to meet the needs of the target market, and positioning the product in the minds of consumers.

Question 6

Atlantic Coast, a wholesale lobster distributor, groups its customers by regions in Canada, such as Central, Atlantic, Pacific and Prairies. For each region, Atlantic Coast tailors a different set of advertisements and promotions. The supplier is segmenting its market according to .

Accepted Answer

Atlantic Coast is segmenting its market based on geographic location, as it groups customers by different regions in Canada.

Question 7

Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged men, and the other line targets younger, up-and-coming professionals. Harry's most likely segments the consumer market based on variables.

Accepted Answer

Harry's segments the market based on demographic variables, specifically age and income, as they target affluent, middle-aged men and younger professionals.

Question 8

Bakeries and coffee bistros that offer pumpkin-flavoured items only during the autumn season target their consumers primarily through segmentation.

Accepted Answer

These businesses target consumers based on the "occasion" of the autumn season, when pumpkin-flavored items are particularly popular.

Question 9

Bass Pro Shops recognizes that outdoors enthusiasts are a diverse group. Likely segments include hunters, campers, and boaters. What is this segmentation method called?

Accepted Answer

The answer of Bass Pro Shops recognizes that outdoors enthusiasts...

Question 10

Unilever's Dove brand, Nivea, Sephora and Canadian clothing brand Lululemon are developing new products in an effort to grow sales in a market they have previously paid little attention to. Lululemon expects to reach $1billion in sales by targeting which previously untapped market?

Accepted Answer

Lululemon is targeting the men's market, which they have previously paid little attention to, in an effort to grow sales and reach $1 billion.

Question 11

Which type of market segmentation is generally used by marketers who sell luxury products targeted to the affluent segments of a population?

Accepted Answer

Income segmentation is used to target affluent segments, as luxury products are often marketed to individuals with higher income levels who can afford them.

Question 12

Dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product is called segmentation.

Accepted Answer

Behavioral segmentation involves dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product.

Question 13

By making health and fitness tracking devices aimed at three segments-Everyday Fitness; Active Fitness and Performance Fitness-Fitbit is segmenting based on which segmentation approach?

Accepted Answer

Fitbit is segmenting the market based on the benefits sought by different groups of consumers, such as everyday fitness, active fitness, and performance fitness.

Question 14

Lilly's, a furniture retailer, sells low-end furniture and accent pieces that are targeted toward lower-income consumer groups. Lilly's most likely segments the consumer market based on variables.

Accepted Answer

Lilly's targets lower-income consumer groups, which is a demographic variable related to income level.

Question 15

Pediacertain Pet Supplies, a pet-food company, divides the pet market according to the pet owners' gender, occupation, income, and family life cycle. In this case, which of the following variables has the company used for market segmentation?

Accepted Answer

The company has used demographic variables for market segmentation, as it divides the market based on gender, occupation, income, and family life cycle, which are all demographic factors.

Question 16

consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Accepted Answer

Positioning involves arranging for a market offering to occupy a clear, distinctive, and desirable place in the minds of target consumers relative to competing products.

Question 17

is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviour.

Accepted Answer

Market segmentation is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviour.

Question 18

Companies today are moving away from target marketing and toward mass marketing.

Accepted Answer

This statement is incorrect. Companies are actually moving away from mass marketing and toward target marketing, which allows them to tailor their marketing efforts to specific groups of customers.

Question 19

One reason demographic variables are the most popular bases for segmenting customer groups is because they .

Accepted Answer

Demographic variables are easier to measure than other variables, making them a popular choice for segmenting customer groups.

Question 20

Explain the four major steps in designing a customer-driven marketing strategy.

Accepted Answer

The answer of Explain the four major steps in designing...

Quiz 6: Customer Value-Driven Marketing Strategy: Creating Value for Target Customers