Question 1

The first step of the segmentation process is to ________.
A) select the target segments
B) identify segmentation variables
C) develop a profile of individual segments
D) group customers into homogeneous segments

Accepted Answer

The first step of the segmentation process is to identify segmentation variables, which are characteristics that can be used to separate customers into different groups or segments. This step lays the foundation for the rest of the segmentation process, as it determines how customers will be grouped and targeted based on their needs, preferences, and behaviors. Once segmentation variables have been identified, the next steps involve grouping customers into homogeneous segments, developing profiles of individual segments, and selecting target segments for marketing efforts.

Question 2

Which of the following is a micro variable used for market segmentation?
A) purchasing approaches
B) personal characteristics
C) operating variables
D) demographics

Accepted Answer

Personal characteristics such as age, gender, income, education level, and personality traits are examples of micro variables used for market segmentation. Purchasing approaches, operating variables, and demographics are considered macro variables.

Question 3

What is the primary purpose of market segmentation? What characteristics should segments possess for a firm to make a profit?

Accepted Answer

The overall objective of market segmentation is to tailor products and services (and the overall marketing program)to the needs of the individual segments.To do that profitably,all identified segments should possess specific characteristics.Segments should be internally homogeneous,externally heterogeneous,be accessible,be measurable,be substantial,and be actionable.

Question 4

Why have geographic variables become less important in market segmentation?
A) inconsistent findings
B) costly market research
C) increasing market globalization
D) ineffective for business-to-business markets

Accepted Answer

With increasing market globalization, consumers are becoming more similar across geographic regions, making geographic variables less relevant for market segmentation.

Question 5

Which type of segmentation is most related to the use of the word when,such as when consumers get the idea to buy,when they actually make their purchase,or when they use the purchased item?
A) psychographic
B) demographic
C) geographic
D) behavioral

Accepted Answer

Behavioral segmentation involves dividing the market based on how consumers behave towards or use a product, including the timing of when they purchase and use it. Therefore, the use of the word "when" in this context suggests that the segmentation is based on consumer behavior, making D (behavioral) the best choice.

Question 6

Your new employer has asked you,as a new marketing graduate,to identify a group of potential customers who might respond in a similar way to a given set of marketing efforts.You have been asked to identify a(n)________.
A) market segment
B) target market
C) market strategy
D) market

Accepted Answer

A market segment is a group of potential customers with similar characteristics and needs who are likely to respond similarly to a particular marketing strategy. Therefore, identifying a group of potential customers who might respond in a similar way to a given set of marketing efforts falls under the realm of market segmentation.

Question 7

Market segmentation is based on either benefits sought or observable customer characteristics.

Accepted Answer

Market segmentation can be based on either benefits sought by customers or observable characteristics such as demographic, geographic, psychographic, and behavioral variables.

Question 8

Geographic variables remain a significant factor in market segmentation,while behavioral variables have declined become less useful.

Accepted Answer

Geographic variables continue to be important in market segmentation because they help identify consumer preferences and behaviors based on location. However, behavioral variables have not declined in usefulness; they are increasingly valuable for understanding consumer habits, loyalty, and purchasing patterns, allowing for more targeted marketing strategies.

Question 9

The division of buyers into groups based on lifestyle,class,or personality characteristics is ________ segmentation.
A) psychographic
B) demographic
C) behavioral
D) needs

Accepted Answer

Psychographic segmentation divides consumers into groups based on their lifestyle, values, personality, interests, and attitudes. This type of segmentation is based on the belief that people's buying behavior is not only influenced by their demographics, but also by their psychological and social factors. It helps marketers to understand their customers' motivations, preferences, and behaviors, and to develop targeted marketing campaigns that resonate with their target audience.

Question 10

Which of the following criteria is it most important that a segment meet in order to be profitable for a firm?
A) be underserved by competitors
B) be demographically diverse
C) have similar loyalty rates
D) have measurable needs

Accepted Answer

It is most important that a segment have measurable needs that can be addressed by the firm's products or services. Without measurable needs, the firm will not be able to generate revenue or have a profitable segment. While being underserved by competitors and having similar loyalty rates are important factors for success, they are not as crucial as having measurable needs. Demographic diversity may or may not be important, depending on the specific product or service being offered.

Question 11

A ________ segmentation focuses on customer desires such as service support,cutting-edge technology,or financial terms.
A) personal characteristic
B) psychographic
C) benefits-sought
D) mass market

Accepted Answer

Benefits-sought segmentation is a form of market segmentation based on identifying the benefits that consumers are seeking in a product or service. This type of segmentation is based on customer desires or preferences, which may include service support, cutting-edge technology, or financial terms. This approach helps businesses to tailor their marketing efforts to the specific needs and wants of different groups of consumers.

Question 12

A benefits-sought segmentation is based on ________ variables.
A) causal
B) position
C) descriptive
D) heterogeneous

Accepted Answer

Benefits-sought segmentation is based on causal variables because it segments the market based on the specific benefits consumers are seeking in a product or service.

Question 13

A marketer in the process of segmenting a B2B market should begin with macro variables before assessing micro variables.

Accepted Answer

A marketer should begin with macro variables, such as industry type, company size, and geographic location, to determine broad segments of the market before assessing micro variables, such as customer needs and behaviors. This approach helps to identify the most significant and meaningful differences between B2B customers and can inform the development of more targeted marketing strategies.

Question 14

The importance of demographic variables in market segmentation has declined in recent years because such variables ________.
A) cannot be quantified accurately
B) change as markets become global
C) fail to predict consumer behavior
D) require sophisticated market research methods

Accepted Answer

Demographic variables have become less central in market segmentation because they often do not accurately predict consumer behavior. Advances in data analytics and understanding of consumer psychology have shown that factors like interests, attitudes, and behaviors can be more predictive of consumer choices than traditional demographic factors like age, gender, or income.

Quiz 21: Note : Market Segmentation

The first step of the segmentation process is to ________.

Which of the following is a micro variable used for market segmentation?

What is the primary purpose of market segmentation? What characteristics should segments possess for a firm to make a profit?

Why have geographic variables become less important in market segmentation?

Which type of segmentation is most related to the use of the word when,such as when consumers get the idea to buy,when they actually make their purchase,or when they use the purchased item?

Your new employer has asked you,as a new marketing graduate,to identify a group of potential customers who might respond in a similar way to a given set of marketing efforts.You have been asked to identify a(n) ________.

Market segmentation is based on either benefits sought or observable customer characteristics.

Geographic variables remain a significant factor in market segmentation,while behavioral variables have declined become less useful.

The division of buyers into groups based on lifestyle,class,or personality characteristics is ________ segmentation.

Which of the following criteria is it most important that a segment meet in order to be profitable for a firm?

A ________ segmentation focuses on customer desires such as service support,cutting-edge technology,or financial terms.

A benefits-sought segmentation is based on ________ variables.

A marketer in the process of segmenting a B2B market should begin with macro variables before assessing micro variables.

The importance of demographic variables in market segmentation has declined in recent years because such variables ________.