Question 1

Geographic segmentation is
A) the process of categorizing different groups of customers in a market, based on customer differences.
B) the process of separating customer groups based on location.
C) the process of separating customer groups based on lifestyle.
D) the process of separating customers based on what they do.

Accepted Answer

Geographic segmentation specifically refers to dividing the market based on location, such as countries, cities, or neighborhoods, to target customers more effectively based on where they live or work.

Question 2

Psychographic segmentation is
A) the process of categorizing different groups of customers in a market, based on customer differences.
B) the process of separating customer groups based on location.
C) the process of separating customer groups based on lifestyle.
D) the process of separating customers based on what they do.

Accepted Answer

Psychographic segmentation involves dividing a market into segments based on lifestyle, personality traits, values, opinions, and interests of consumers.

Question 3

Behavioral segmentation is
A) the process of categorizing different groups of customers in a market, based on customer differences.
B) the process of separating customer groups based on location.
C) the process of separating customer groups based on lifestyle.
D) the process of separating customers based on what they do.

Accepted Answer

Behavioral segmentation involves dividing customers into groups based on their behaviors, such as purchasing habits, product usage, and brand interactions.

Question 4

Vance, a marketing major, was helping his sister develop her retail shop. Her business was not thriving, and Vance quickly determined that trying to please everyone was pleasing no one. Together they worked out an approach where she would identify groups of customers who had similar needs, and then work with each group to meet their needs. This basic process in marketing is called
A) demographics.
B) needs response.
C) marketing segmentation.
D) market optimization.

Accepted Answer

Marketing segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics. In this scenario, Vance is applying this concept by identifying groups of customers with similar needs to tailor the business's offerings more effectively.

Question 5

A mass market approach
A) assumes the market is just one big segment.
B) assumes every customer is their own segment.
C) is the process of separating customer groups based on location.
D) is the process of separating customer groups based on lifestyle.

Accepted Answer

A mass market approach assumes the market is just one big segment, targeting the largest possible audience without differentiation.

Question 6

A micromarketing approach
A) assumes the market is just one big segment.
B) assumes every customer is their own segment.
C) is the process of separating customer groups based on location.
D) is the process of separating customer groups based on lifestyle.

Accepted Answer

Micromarketing is a strategy that treats every customer as their own segment, focusing on highly personalized and targeted approaches.

Question 7

Generally speaking, how many steps are there in the segmentation process?
A) 5
B) 6
C) 7
D) 8

Accepted Answer

The answer of Generally speaking, how many steps are there...

Question 8

Demographic segmentation is
A) the process of categorizing different groups of customers in a market based personal characteristics such as age, race, and so on.
B) the process of separating customer groups based on location.
C) the process of separating customer groups based on lifestyle.
D) the process of separating customers based on what they do.

Accepted Answer

Demographic segmentation involves categorizing customer groups based on personal characteristics such as age, gender, income, race, and education, which helps businesses tailor their products and marketing efforts to meet the specific needs of different demographic groups.

Question 9

A key variable to demographic segmentation is
A) gender.
B) social class.
C) brand loyalty.
D) usage rate.

Accepted Answer

Gender is a key variable in demographic segmentation because it can be used to identify different groups of consumers with different needs and wants.

Question 10

Which of the following is NOT a criterion needed for a market segmentation approach to be effective?
A) Measurable
B) Substantial
C) Responsive
D) Marketable

Accepted Answer

Market segmentation must be measurable, substantial, and responsive to be effective. "Marketable" is not a recognized criterion for effective market segmentation. Effective segmentation requires that segments are identifiable and sizable (measurable), large or profitable enough to serve (substantial), and likely to respond positively to marketing efforts (responsive).

Question 11

A target market is
A) the group of customers a company decides to focus its marketing efforts on.
B) the group of companies a given company must take customers away from.
C) a group of customers loyal to another company.
D) a group of customers a company doesn't want to market to because those customers are the least profitable.

Accepted Answer

A target market is defined as the specific group of potential customers towards whom a company directs its marketing efforts. This group is selected based on factors like demographics, interests, and behaviors, with the aim of focusing resources on the audience most likely to purchase the company's products or services.

Question 12

Positioning is
A) the act of categorizing different groups of customers in a market, based on customer differences.
B) is used externally to give customers a sense of the company's brand.
C) the act of creating a specific perception in the customer's mind relative to other options.
D) the act of strategically locating products with a given geographic area.

Accepted Answer

The answer of Positioning is
A) the act of categorizing different...

Question 13

How many steps are typically involved in developing a target market?
A) 5
B) 4
C) 2
D) 3

Accepted Answer

There are typically three steps involved in developing a target market: segmentation, targeting, and positioning.

Question 14

What is the first step in developing a target market?
A) Selecting a variable within the base.
B) Narrowing the market.
C) Rank the segments in order of attractiveness.
D) Decide which segments to target.

Accepted Answer

The answer of What is the first step in developing...

Question 15

What is the third step in developing a target market?
A) Selecting a variable within the base.
B) Narrowing the market.
C) Rank the segments in order of attractiveness.
D) Decide which segments to target.

Accepted Answer

Decide which segments to target.

Question 16

Bragg Company is going through the market segmentation process. They divide customers into two groups: 1) those over 50, and 2) those under 50. This is an example of
A) geographic segmentation.
B) demographic segmentation.
C) psychographic segmentation.
D) behavioral segmentation.

Accepted Answer

Dividing customers based on age falls under demographic segmentation, which categorizes markets by demographic information like age, gender, income, etc.

Question 17

Riley Surf Company is going through the market segmentation process. They divide customers into two groups: 1) those who live in California, and 2) those who don't. This is an example of
A) geographic segmentation.
B) demographic segmentation.
C) psychographic segmentation.
D) behavioral segmentation.

Accepted Answer

Geographic segmentation involves dividing a market into different geographical units such as nations, states, regions, cities, or neighborhoods. In this case, Riley Surf Company is segmenting the market based on the geographical location of the customers (those who live in California vs. those who don't), which is a classic example of geographic segmentation.

Question 18

Shredville Company is going through the market segmentation process. They divide customers into two groups: 1) those who prefer snow skiing, and 2) those who prefer snowboarding. This is an example of
A) geographic segmentation.
B) demographic segmentation.
C) psychographic segmentation.
D) behavioral segmentation.

Accepted Answer

This is an example of psychographic segmentation, which involves dividing a market into different segments based on social class, lifestyle, or personality characteristics. In this case, the preference for snow skiing versus snowboarding reflects a lifestyle or interest, which fits into psychographic segmentation.

Question 19

Brag Company is going through the market segmentation process. They divide customers into two groups: 1) those who snow ski 0-4 times a year, and 2) those who snow ski more than 4 times a year. This is an example of
A) geographic segmentation.
B) demographic segmentation.
C) psychographic segmentation.
D) behavioral segmentation.

Accepted Answer

This is an example of behavioral segmentation because it categorizes customers based on their behavior, specifically how often they engage in snow skiing. Behavioral segmentation looks at patterns of behavior displayed by customers, such as usage rate, loyalty, and benefits sought, to create more targeted marketing strategies.

Question 20

Gnarly Company makes shoes designed for skateboarding. What is the most likely demographic variable Gnarly will segment the market on?
A) Climate
B) Physical location
C) Lifestyle
D) Age

Accepted Answer

The answer of Gnarly Company makes shoes designed for skateboarding....

Quiz 6: Segmentation, Targeting, and Positioning

Geographic segmentation is

Psychographic segmentation is

Behavioral segmentation is

A mass market approach

A micromarketing approach

Generally speaking, how many steps are there in the segmentation process?

Demographic segmentation is

A key variable to demographic segmentation is

Which of the following is NOT a criterion needed for a market segmentation approach to be effective?

A target market is

Positioning is

How many steps are typically involved in developing a target market?

What is the first step in developing a target market?

What is the third step in developing a target market?

Bragg Company is going through the market segmentation process. They divide customers into two groups: 1) those over 50, and 2) those under 50. This is an example of

Riley Surf Company is going through the market segmentation process. They divide customers into two groups: 1) those who live in California, and 2) those who don't. This is an example of

Shredville Company is going through the market segmentation process. They divide customers into two groups: 1) those who prefer snow skiing, and 2) those who prefer snowboarding. This is an example of

Brag Company is going through the market segmentation process. They divide customers into two groups: 1) those who snow ski 0-4 times a year, and 2) those who snow ski more than 4 times a year. This is an example of

Gnarly Company makes shoes designed for skateboarding. What is the most likely demographic variable Gnarly will segment the market on?