Deck 3: Segmentation

Question 1

Collectively, a marketplace of consumers is homogeneous.

Answer 1

False

Question 2

Income is a psychological variable.

Answer 2

False

Question 3

Families with higher household incomes hire more service workers.

Answer 3

True

Question 4

Age is an easily identifiable demographic variable.

Question 5

Coupons that are printed at grocery checkouts are a function of items the customer just purchased.

Question 6

Segments become more homogeneous as they increase in size.

Question 7

The mass marketing approach is usually realistic.

Question 8

Maslow's hierarchy ranges from satisfaction of basic biological needs to more abstract needs regarding well-being.

Question 9

On a continuum from mass marketing to one-to-one marketing, market segmentation is in the middle.

Question 10

In marketing, we deal with customer differences through segmentation.

Question 11

Opinion leaders, innovators, or market mavens are known for their expertise and involvement in a category.

Question 12

Urban living affords certain elements of entertainment, and smaller towns offer different kinds of amusement.

Question 13

Older couples who are empty nesters dream of spending their greater discretionary income on technology and furniture.

Question 14

The goal of homogeneity in customers' likes or dislikes is more achievable as the segment size gets smaller, but if the segment is too small, it might not be profitable to serve.

Question 15

It is useful for marketers to understand the psychological and lifestyle choices that are relevant to the brand(s) the marketer is pitching.

Question 16

Economists note that imperfect competition occurs because consumers have unique needs and desires.

Question 17

Since most marketplaces are international, country and cultural differences can be tremendous.

Question 18

A market segment is an individual customer who shares similar inclinations toward your brand.

Question 19

Some companies that tried mass customization have scaled back their attempts because it is not cost-effective.

Question 20

One reason celebrity spokespeople are thought to be effective is that ordinary people aspire to be like the celebrity, in whatever manner that is achievable.

Question 21

All of the qualities that marketers care about may be mapped onto segments in any product category.

Question 22

We can directly observe attitudes, but we cannot use behaviors to infer attitudes and psychological states.

Question 23

An increasingly popular means of using co-purchasing patterns to generate cross-selling suggestions are Internet recommendation agents.

Question 24

"Current users" are relatively difficult to communicate with.

Question 25

A set of segments may be very clear from a statistical perspective, but they need to be useful from a managerial point of view.

Question 26

The ideal goal for the marketer is to find an untapped (or at least relatively underserved) group of customers whose needs can easily and profitably be met.

Question 27

The 80:20 rule is where 20% (or so) of your sales come from 80% (or so) of your customers.

Question 28

Profitability means number of customers.

Question 29

It is easier to identify, obtain information on, and woo customers who are currently using a competitor's brand or who aren't even purchasers in the category.

Question 30

Marketers identify segments best when iterating between a managerial top-down approach and a customer-based assessment.

Question 31

An upscale segment is always a tempting one for marketers to target because marketers assume that those customers can afford to purchase their goods or services, with a little less price sensitivity than other customers.

Question 32

Sometimes segments appear small only because the clustering was done too finely.

Question 33

To marketers, the most important feature of segments is their size, not their profitability.

Question 34

Lots of segmentation schemes fail because marketers focus on the wrong criteria.

Question 35

Sometimes a marketing manager might hold beliefs that are not consistent with the customer data.

Question 36

Data sources for segmenting businesses and consumers tend to be the same.

Question 37

Businesses treat all clients the same way-whether large or small.

Question 38

Size does not always correlate with future growth potential.

Question 39

The least common marketing research technique used to segment customer data is cluster analysis.

Question 40

Political party identifications have a clear and predictable effect on cereal consumption and cell phone plans.

Question 41

Consumers have unique needs and desires.Economists call this

A) imperfect competence.
B) imperfect competition.
C) diverse demand.
D) diverse marketing.

Question 42

Considering a continuum from mass marketing to one-to-one marketing, marketing segmentation is

A) very close to mass marketing.
B) very close to one-to-one marketing.
C) in the middle.
D) on a different continuum.

Question 43

The fact that snow-blowers tend to sell better in the North than in the South illustrates the importance of considering __________ in marketing planning.

A) climate
B) urban living
C) culture
D) age

Question 44

Gender, age and income are all qualities of what segmentation base?

A) geographic
B) psychological
C) education
D) demographic

Question 45

Instead of trying to appeal to the entire marketplace, smart marketers and smart companies will try to find out

A) what will appeal to high-end customers.
B) which customers might like their product, and how to get the product into their hands.
C) which customers are price sensitive.
D) which customers have brand loyalty and seek a brand image similar to other brands they like.

Question 46

Who created the hierarchy of needs?

A) Maslow
B) Watson
C) Skinner
D) Freud

Question 47

As segments increase in size, it becomes __________ to satisfy them with the same product.

A) more difficult
B) easier
C) cheaper
D) more fun

Question 48

Newlyweds are most likely to spend money on which of the following?

A) charitable giving
B) furniture
C) music
D) health care

Question 49

Company ABC segments customers by gender, age, education, and income.Company ABC's segmentation is based on __________ factors.

A) demographic
B) geographic
C) psychological
D) behavioral

Question 50

Which of the following is a geographic factor?

A) price
B) income
C) market size
D) media

Question 51

Which of the following is NOT a demographic variable?

A) gender
B) age
C) culture
D) education

Question 52

Company ABC is interested in better understanding how different groups of customers feel about its product.In order to do this, Company ABC will need to

A) position its product in the market.
B) segment the market.
C) mass market.
D) target market.

Question 53

__________ is a type of segmentation in which the company strategically focuses on targeting a smaller market with particular needs that the company can serve well.

A) Mass marketing
B) Demographic marketing
C) Niche marketing
D) One-to-one marketing

Question 54

Young adults are most likely to be interested in which of the following?

A) music technologies
B) diapers
C) health care options
D) travel

Question 55

__________ means that all customers are treated the same.

A) One-to-one marketing
B) Gender marketing
C) Group marketing
D) Mass marketing

Question 56

Empty nesters tend to start dreaming of spending their greater discretionary income on

A) music and movies.
B) furniture and remodeling.
C) higher education.
D) travel and hobbies.

Question 57

__________ means that each customer serves as his or her own segment.

A) Geographic marketing
B) One-to-one marketing
C) Mass marketing
D) Psychological marketing

Question 58

Differences in __________ and preferences require that different products be provided to satisfy the different segments' needs.

A) companies
B) targets
C) perceptions
D) consumers

Question 59

The contrast between mass marketing and one-to-one marketing illustrates that segments become more __________ as they increase in size.

A) heterogeneous
B) favorable
C) homogeneous
D) unfavorable

Question 60

Regarding the phrase "time is money," what type of effect does time seemingly have on money?

A) positive effect
B) no effect
C) little effect
D) negative effect

Question 61

The managerial perspective is important with respect to assessing whether serving a specific __________ is consistent with overall corporate goals.

A) market segment
B) product
C) provider
D) competitor

Question 62

An important element of an iterative segmentation is

A) a good company.
B) quality products.
C) good customer data.
D) good management.

Question 63

Entrepreneurs may need to approximate Prizm and VALS data, because they are

A) not available to the public.
B) difficult to understand.
C) expensive.
D) not interesting to consumers.

Question 64

Some customers are currently using a competitor's brand or don't purchase a certain type of product.It is __________ for marketers to identify, obtain information on, and woo these people.

A) easy
B) moderately difficult
C) challenging
D) impossible

Question 65

Marketers identify segments best when iterating between two approaches.What are the two approaches?

A) customer, market
B) managerial, customer
C) managerial, company
D) market, company

Question 66

Some customers are __________, caring about new developments in their category and seeking out new products.

A) opinion leaders
B) early adopters
C) market mavens
D) innovators

Question 67

A(n) __________ segment is always a tempting one for marketers to target because marketers assume that those customers can afford to purchase their goods or services.

A) international
B) upscale
C) small
D) large

Question 68

Which of the following questions best helps a marketer determine the profitability of a market segment?

A) How many customers are in the segment?
B) Is a database available to identify potential customers?
C) Does the segment fit corporate goals?
D) How frequently do the customers purchase?

Question 69

One behavioral segment of great importance to the marketer is the __________ of the focal brand because it is relatively easy to communicate to this group.

A) past user
B) future user
C) current user
D) non-user

Question 70

A popular tool for segmenting that uses psychographic data, and that is based on the belief that one's attitudes and value system determine one's orientation to certain products and/or brands is called

A) Experian.
B) VALS.
C) Mals.
D) Prizm.

Question 71

Businesses plan for and interact differently with their larger clients than with their smaller ones.They assign more client service personnel and extend more relationship management efforts because these customers tend to be

A) more profitable.
B) cheaper.
C) less profitable.
D) higher quality.

Question 72

Which of the following examples is based on a psychological factor?

A) Sam purchases school clothes for his son.
B) Louise purchases furniture for her new house.
C) Macie purchases equipment for playing soccer.
D) Jalen purchases a new automobile that is good in snow.

Question 73

The ideal goal for the marketer is to find a(n) __________ group of customers whose needs it can easily and profitably meet.

A) quality
B) overserved
C) untapped
D) competing

Question 74

Some customers are known for their expertise and involvement in a category and are willing to share information and give advice, making them likely to generate word of mouth.These people are knows as market

A) tenders.
B) mavens.
C) sharers.
D) sellers.

Question 75

Which of the following is a psychological factor?

A) attitude
B) education
C) age
D) country

Question 76

What term refers to people who are trendy and fashionable in order to impress others and are often impulse buyers?

A) stretchers
B) aficionados
C) innovators
D) strivers

Question 77

There is a rule of thumb that says it costs _____ times more to acquire a new customer compared to maintaining a loyal one.

A) 3
B) 6
C) 9
D) 12

Question 78

It's not unusual to see a segmentation study comprised of some usage variable (e.g., heavy vs.light users) or some attitudinal variable (e.g., positively inclined toward our brand vs.loyal to a competitor).What type of variable is it usually cross-tabbed with?

A) demographic
B) geographic
C) psychological
D) physical

Question 79

A service called Prizm posits that MBAs who live in New York have a lot more in common with their counterparts in London, Saö Paulo, and Tokyo, than they do with their neighbors in New York who are relatively less educated or wealthy.What types of information are combined in this example?

A) geographic and demographic
B) geographic and psychological
C) psychological and demographic
D) psychological and behavioral

Question 80

What does the 80:20 rule say?

A) Eighty percent of sales will come from 20% of customers.
B) For every 80 people who look at a product, 20 will buy it.
C) For every 80 customers, 20 will be repeat customers.
D) Eight percent of customers are only interested in 20% of available merchandise.