Question 1

Universal Concerts is planning on bringing a series of concerts to Canada next year. In order for its concerts to be a success, it needs to know that Western Canadians like country music and that a country music event in Eastern Canada is much more likely to have empty seats. This consumer behaviour requires Universal Concerts to segment its Canadian market according to:

Accepted Answer

The segmentation mentioned in the scenario is based on geographic characteristics (Western Canada vs. Eastern Canada) and potentially psychographic characteristics (preference for country music). This suggests that geographic and psychographic segmentation would be the most appropriate approach for Universal Concerts in Canada. The other options (B, C, and D) do not fully capture these factors.

Question 2

When Mikki asked her father for his advice about marketing software for the disabled, he told her, "Reaching a segment requires a simple but effective marketing action. If no such action exists, don't segment." Mikki's father is expressing concern about the:

Accepted Answer

Mikki's father is emphasizing the importance of a simple and effective marketing action, implying that if such an action is not feasible, then it may not be worth segmenting the market. This suggests concern about the feasibility of marketing actions to reach a particular segment.

Question 3

Which of the following statements demonstrates the formation of a segment based on family size?

Accepted Answer

GE's creation of a downsized microwave oven specifically caters to smaller households or those with limited kitchen space, indicating segmentation based on family size or living space constraints.

Question 4

Which of the following statements demonstrates geographic segmentation?

Accepted Answer

Geographic segmentation involves dividing a market based on geographical boundaries. In this case, KFC is selling a spicier chicken in restaurants farther from coastal areas, indicating they are segmenting their market based on geographic location.

Question 5

Understanding customer needs is the _________ step in market segmentation.

Accepted Answer

Understanding customer needs is the first step in market segmentation, as it sets the foundation for identifying and targeting specific groups of customers with similar needs and characteristics.

Question 6

Doris Lewis owns Lewis Edibles Inc., a company that makes Tongue Tinglin' B.B.Q. sauce. She wants to target local people who like the special blend of flavours found only in North Carolina mustard-based barbecue sauce. The easiest method for segmenting her market is to use ______ segmentation variables.

Accepted Answer

The best choice for segmenting the market in this scenario is geographic segmentation as Doris is targeting local people who like the specific taste of North Carolina mustard-based barbecue sauce. This means that she can benefit from using location-based tactics to reach her desired audience.

Question 7

Which of the following is NOT a criterion used in forming segments?

Accepted Answer

Competitive position is not a criterion used in forming segments. The other three criteria (potential for increased profit and ROI, similarity of needs of potential buyers within a segment, and feasibility of marketing action to reach a segment) are commonly used in segmenting a market.

Question 8

When a telemarketer calls to sell a consumer vinyl siding for his or her home, the first question the telemarketer asks is if the person answering the phone is a homeowner. Whether the prospect is a homeowner indicates the use of which type of consumer segmentation variable?

Accepted Answer

The question refers to the telemarketer asking whether the person answering the phone is a homeowner, which is a characteristic related to demographics, specifically home ownership status. Therefore, the use of the segmentation variable is demographic.

Question 9

Which of the following is NOT a criterion used in forming market segments?

Accepted Answer

Cost of reaching the segment is not a criterion used in forming market segments. The other choices, such as difference of needs between segments, similarity of needs within a segment, and potential for increased profit and ROI, are all common criteria used in market segmentation.

Question 10

Modern Maturity magazine is a publication that is sent to all AARP members, who by organization definition have to be at least 50 years old to join. The market segment for Modern Maturity magazine was defined by:

Accepted Answer

The age requirement of 50 years old to join AARP is a demographic characteristic, which defines the market segment for Modern Maturity magazine.

Question 11

At a Hallmark store you can find several different product lines of greeting cards, including Fresh Ink, Nature's Sketchbook, Shoebox, Maxine, Mahogany, and Tree of Life cards - all made by Hallmark for sale in its stores and intended to appeal to Different target markets. The Mahogany line is designed to appeal to African-Americans. This is an example of ________segmentation.

Accepted Answer

The Mahogany line of cards is designed specifically to appeal to African-Americans, a specific demographic group. Therefore, this is an example of demographic segmentation.

Question 12

The Province of Ontario Board of Tourism ran a series of ads showing traditional families enjoying various attractions in the state. Since the apparent target of these is traditional families, it appears the Board of Tourism has segmented the market using
________ variables.

Accepted Answer

Demographic variables refer to characteristics such as age, gender, income, education, and family size. In this case, the Board of Tourism is targeting traditional families, which is a demographic variable. Regional and geographic variables would refer to location and physical characteristics of an area, while socioeconomic variables would refer to income and status.

Question 13

A different market segment usually requires a different marketing action that in turn means greater costs. If increased revenues do not offset extra costs, a marketer should ________ to reduce the number of marketing actions.

Accepted Answer

Combining segments allows a marketer to streamline marketing efforts and reduce the number of distinct marketing actions needed, potentially lowering costs while maintaining or increasing revenues. This approach contrasts with options like changing advertising strategies or adjusting budgets, which don't directly address the issue of segment-specific marketing actions.

Question 14

When the Benihana Frozen Foods Corporation began to offer its Famous Restaurant Classics meals in single serving packages, it was relying on a________ segmentation variable to define a market based on serving size.

Accepted Answer

The segmentation variable used by Benihana Frozen Foods Corporation to define a market based on serving size is demographic, which relates to characteristics such as age, gender, income, and family size. Single serving packages are targeted towards consumers who live alone or have smaller households and would prefer a more convenient, portion-controlled option.

Question 15

The best segmentation approach is the one that:

Accepted Answer

The answer of The best segmentation approach is the one...

Question 16

Ford Motor Company uses the slogan "No Boundaries" for its ad campaigns for Ford SUVs. It invites people who want ultimate people-carrying and gear-storing capabilities "to be outfitted with the most far-reaching sports utility vehicle on earth." If the SUV campaign were simply geared to families with young children, it would be using________ segmentation, but because the campaign is trying to appeal to people who do not like the restrictions of a sedan, who want to be able to pack up and leave at a moment's notice, and who enjoy freedom and independence, it is relying on
________ segmentation.

Accepted Answer

The correct answer is demographic segmentation when targeting families with young children, as this approach categorizes the market based on demographic variables such as age, family size, or life cycle stage. The campaign's broader appeal to those desiring freedom, independence, and the ability to leave at a moment's notice aligns with psychographic segmentation, which divides the market based on personality traits, values, attitudes, interests, or lifestyles.

Question 17

A marketing manager must be able to put a market segmentation plan into effect. This means being able to recognize the characteristics of potential buyers and_________ without encountering excessive costs.

Accepted Answer

A marketing manager must be able to recognize the characteristics of potential buyers and assign them to a segment based on these characteristics. This helps in creating targeted marketing strategies that are more likely to be successful. The manager must also ensure that the cost of segmentation does not become too high, thereby maximizing profits. The other options are not directly related to market segmentation.

Question 18

A new car dealer decides to open up a dealership in a region that has higher than national average income. Which characteristic is the new car dealer using to segment their market?

Accepted Answer

The new car dealer is using demographic segmentation by targeting customers based on their income level in a specific region.

Question 19

A local coffee shop places significant value in using consumer demographic variables in segmenting their local market. Using the latest Canada Census covering topics of: education, age, and income will be important to use in which marketing step?

Accepted Answer

The correct answer is A because the first step in market segmentation is to identify and profile different customer groups. Demographic variables such as education, age, and income are commonly used to segment markets.

Question 20

A local sports store is planning on using only demographic variables to segment potential customers who will purchase from the store. This will dictate the diversity of products the store will carry. Which research report is most useful to this sports store?

Accepted Answer

The answer of A local sports store is planning on...

Quiz 9: Market Segmentation, Targeting, and Positioning