Question 1

The public transportation system in a major city conducted a survey that revealed respondents could be assigned to one of four categories: (1)people who never used mass transit, (2)people who used mass transit in the past but not now, (3)people who used mass transit occasionally,and (4)people who used mass transit regularly.These groups have significantly different perceptions about transportation alternatives.What type of segmentation is this?
A) benefit
B) demographic
C) usage-rate
D) economic

Accepted Answer

This is an example of usage-rate segmentation, which divides customers based on how frequently they use a product or service. In this case, the four groups are defined by their usage of mass transit.

Question 2

The debate over gay marriages caused a great deal of furor,but it has done little to deplete the importance of the affluent gay market to businesses.Pacific Clothing and Mitchell Gold are two companies that have implemented and maintained marketing mixes designed to meet the needs of lesbians and gays.To these companies and others,what are lesbians and gays?
A) a desirable perceived market
B) a desirable market base
C) a desirable target market
D) a desirable market sample

Accepted Answer

The companies have implemented marketing mixes designed to meet the needs of lesbians and gays, indicating that they view them as a desirable target market, rather than just a perceived market or market sample. Additionally, the word "base" does not accurately capture the concept of a target market, which refers specifically to a group of customers that a company aims to sell its products or services to.

Question 3

What is a group of people or organizations for which another organization designs,implements,and maintains a marketing mix intended to meet the needs of that group,resulting in mutually satisfying exchanges?
A) a heterogeneous segment
B) a target market
C) an undifferentiated target
D) an aggregated market

Accepted Answer

A target market is a group of people or organizations for which a company designs, implements, and maintains a marketing mix in order to meet their needs and wants, resulting in mutually satisfying exchanges. The other options either do not accurately describe the concept or are not commonly used marketing terminology.

Question 4

Train collectors Jack McCoy and Sandro Dias have decided to open a store that sells train memorabilia-everything from toy train sets to full-sized railroad signs.After 18 months in business,they have noticed that most of their sales are to the same small group of customers (about 40 people)even though they have records to show there are over 200 active train collectors within a 50-mile radius of their store.Their retailing experience is supportive of which of the following?
A) the rule of demand
B) the 80/20 principle
C) the optimizer principle
D) the min-max rule

Accepted Answer

The situation described in the scenario is consistent with the 80/20 principle, also known as the Pareto principle. This principle states that roughly 80% of effects come from 20% of causes. In the context of sales, it suggests that a small group of customers (20%) will account for a large proportion of sales (80%). In this case, 40 customers out of 200 account for a significant portion of the store's sales. Understanding this principle can help the store owners to focus their marketing efforts on the most valuable customers, and to develop strategies to attract new customers who may also fall into this high-value group.

Question 5

Ever since Hunter got his new Shell credit card,which gives him a 5 percent rebate on all purchases of Shell gas,he will buy gas only at stores that sell Shell gas.Shell introduced its credit card plan as a means of implementing what type of segmentation?
A) usage-rate
B) personality
C) lifestyle
D) motive

Accepted Answer

The fact that the Shell credit card gives Hunter a 5 percent rebate on all purchases of Shell gas suggests that Shell is targeting customers who frequently use their gas. This is an example of usage-rate segmentation, which involves dividing the market based on the level of usage of a product or service.

Question 6

Manufacturers of instant potato flakes sell to resellers,institutional food services,and movie production companies.(Instant potato flakes are typically used in movies when the scene calls for falling snow. )The manufacturers of instant potato flakes would most likely segment their market according to which of the following?
A) company characteristics
B) customer relationship objectives
C) financial terms
D) length of distribution channel

Accepted Answer

The manufacturers of instant potato flakes would most likely segment their market according to company characteristics, such as the type of the reseller, institutional food service, or movie production company. They may offer different product packages or promotions tailored to the specific needs and preferences of each type of company.

Question 7

Which of the following consider numerous,even unfamiliar,suppliers and solicit and analyze options?
A) satisficers
B) innovators
C) actualizers
D) optimizers

Accepted Answer

Optimizers are the ones who consider numerous, even unfamiliar suppliers and solicit and analyze options in order to find the best possible solution. Satisficers settle for a solution that is satisfactory, while innovators are more concerned with being the first to try something new. Actualizers strive for the best possible outcome but may not necessarily consider multiple options.

Question 8

After selecting a market for study,and choosing a basis for segmenting that market,what is the next step?
A) Design a marketing mix.
B) Implement and maintain a marketing mix.
C) Select target markets.
D) Select segmentation descriptors.

Accepted Answer

The answer of After selecting a market for study,and choosing...

Question 9

Why are many retail firms interested in customer loyalty cards and programs?
A) Sales are equally divided among heavy,medium,and light users,but they all need slightly different products.
B) Roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product.
C) Roughly 80 percent of the profit comes from 20 percent of the sales.
D) Roughly 80 percent of a firm's customers are repeat business.

Accepted Answer

Retail firms are interested in customer loyalty cards and programs because roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product, which means they want to retain these valuable customers and encourage them to continue purchasing from the company. Customer loyalty programs can also incentivize customers to increase their purchases, which can further drive sales and revenue.

Question 10

Hotels that cater to frequent business travellers are using what type of segmentation?
A) psychographic
B) benefit
C) geographic
D) usage rate

Accepted Answer

Hotels that cater to frequent business travellers are using usage rate segmentation, which aims to divide customers based on how frequently they use the product or service. In this case, the hotel is targeting customers who travel frequently for business, rather than those who only travel occasionally or for leisure purposes.

Question 11

After dividing his catering customers into three segments based on income range and selecting segmentation descriptors,Kai Stein wrote out a description of each segment's size,expected growth,frequency of parties,and overall profit potential.What did Kai engage in?
A) Differentiating his market segments
B) positioning his products to his market segments
C) profiling and analyzing his segments
D) concentrating his marketing mix on the most profitable marketing segments

Accepted Answer

Kai engaged in profiling and analyzing his segments by dividing his customers into segments based on income range and selecting segmentation descriptors (which are characteristics that help define each segment). He then wrote out a description of each segment's size, expected growth, frequency of parties, and overall profit potential. This shows that Kai analyzed each segment to better understand their characteristics and potential profitability.

Question 12

The Hudson Company manufactures and installs above-ground swimming pools.When the company began in 1989,it completed a thorough examination of its business customers.It grouped the customers into three segments based on size,geographic region,and benefits sought.Would you recommend a new segmentation analysis this year?
A) Yes,I would recommend one be done regularly because of the rapidly changing nature of most markets.
B) Yes,a new analysis would be in order,but it should use Different bases to get some variety.
C) No,once every 20 years is about average.
D) No,consumer markets are not rapidly changing or developing like business goods markets.

Accepted Answer

It is recommended to conduct regular segmentation analysis as markets are rapidly changing over time. This can help the company stay up-to-date with customers' needs and preferences and adjust their marketing strategies accordingly.

Question 13

General Mills offers a deal where its cereal users can collect box tops and submit them to General Mills to earn money for their children's schools.This program,called the Box Tops for Education Program,is a means of changing light users into heavier users.In other words,it is a form of what type of segmentation?
A) personality
B) demographic
C) lifestyle
D) usage-rate

Accepted Answer

The Box Tops for Education Program is a means of changing light users (those who only buy cereal occasionally) into heavier users (those who buy cereal more frequently to collect more box tops). This is an example of usage-rate segmentation, which divides the market based on how much customers use or consume a product.

Question 14

Firms can be categorized by the type of purchasing strategy they use.Which of the following usually contact familiar suppliers and place an order with the first that can meet product and delivery requirements?
A) optimizers
B) experiencers
C) satisficers
D) actualizers

Accepted Answer

Satisficers are firms that have established relationships with familiar suppliers and place orders with the first supplier that meets their product and delivery requirements. They do not spend a significant amount of time searching for alternative suppliers or negotiating prices.

Question 15

Terri LaVoile operates a plumbing and electrical supply store.He has categorized its business customers by their purchasing strategy.LaVoile has found it much easier to serve and satisfy one group who usually recontact familiar suppliers and place an order immediately if product and delivery requirements are acceptable.What is this group?
A) adaptors
B) adopters
C) satisficers
D) innovators

Accepted Answer

The group described in the scenario is satisficers, who are customers that are satisfied with finding an acceptable option and do not seek out the best possible option.

Question 16

Business marketers focus on four broad market segments.Which of the following is one of those segments?
A) sellers
B) raw material suppliers
C) households
D) institutions

Accepted Answer

The four broad market segments for business marketers are institutions (such as hospitals or schools), resellers (such as wholesalers or retailers), government entities (such as local or state governments), and commercial enterprises (such as manufacturers or service providers). Raw material suppliers and sellers may be considered part of the commercial enterprise segment, while households are not typically considered a target market for business marketers.

Question 17

Which of the following proposes that a minority of a firm's customers purchase a majority of the volume of the product?
A) the equity fallacy
B) the majority fallacy
C) the cannibalization rule
D) the 80/20 principle

Accepted Answer

The 80/20 principle, also known as the Pareto principle, proposes that 20% of a firm's customers purchase 80% of the volume of the product. It is important for firms to target and cater to these top customers in order to maximize profits.

Question 18

Sure Fit Inc.has begun a rebranding strategy to let customers know that it no longer only produces slipcovers,but also carries a line of rugs,windows treatments,and bedding.In this scenario,what are women with average annual household incomes of $60,000 or more?
A) its target market
B) its aggregated market
C) its market Differentiation
D) its market audience

Accepted Answer

The women with average annual household incomes of $60,000 or more are the target market for Sure Fit Inc.'s rebranding strategy.

Question 19

Which type of segmentation is Aeroplan,Air Canada's flyer loyalty program,based on?
A) lifestyles
B) usage rate
C) personality
D) motives

Accepted Answer

Aeroplan is based on usage rate segmentation, as it rewards frequent flyers with points and benefits for their continued loyalty to Air Canada.

Question 20

Tower Fasteners developed a commanding position in the fastener industry by carrying in stock over 150,000 different types of fasteners.Tower's primary market is defined as companies with a need for specialized fasteners.All of the following are characteristics of the buying organization that Tower can use for segmentation EXCEPT which one?
A) company size
B) psychographic variables
C) geographic location
D) the method the company uses to make purchases

Accepted Answer

Psychographic variables are related to the personality, values, attitudes, interests, and lifestyles of buyers, which are not relevant factors for Tower Fasteners to segment its market. All other options, such as company size, geographic location, and purchasing method, are relevant criteria for segmentation as they can provide useful insights to develop targeted marketing strategies.

Quiz 6: Segmenting and Targeting Markets

What is a group of people or organizations for which another organization designs,implements,and maintains a marketing mix intended to meet the needs of that group,resulting in mutually satisfying exchanges?

Ever since Hunter got his new Shell credit card,which gives him a 5 percent rebate on all purchases of Shell gas,he will buy gas only at stores that sell Shell gas.Shell introduced its credit card plan as a means of implementing what type of segmentation?

Which of the following consider numerous,even unfamiliar,suppliers and solicit and analyze options?

After selecting a market for study,and choosing a basis for segmenting that market,what is the next step?

Why are many retail firms interested in customer loyalty cards and programs?

Hotels that cater to frequent business travellers are using what type of segmentation?

After dividing his catering customers into three segments based on income range and selecting segmentation descriptors,Kai Stein wrote out a description of each segment's size,expected growth,frequency of parties,and overall profit potential.What did Kai engage in?

Firms can be categorized by the type of purchasing strategy they use.Which of the following usually contact familiar suppliers and place an order with the first that can meet product and delivery requirements?

Business marketers focus on four broad market segments.Which of the following is one of those segments?

Which of the following proposes that a minority of a firm's customers purchase a majority of the volume of the product?

Sure Fit Inc.has begun a rebranding strategy to let customers know that it no longer only produces slipcovers,but also carries a line of rugs,windows treatments,and bedding.In this scenario,what are women with average annual household incomes of $60,000 or more?

Which type of segmentation is Aeroplan,Air Canada's flyer loyalty program,based on?