Question 1

Fisher-Price is identifying Asian markets that are interested in their line of talking toys.Fisher-Price is engaged in the process of market segmentation.

Accepted Answer

Fisher-Price is targeting a specific market (Asian markets) based on their interest in a specific product line (talking toys). This is an example of market segmentation, where a company identifies subgroups within a larger market that have similar characteristics and needs, and tailors their marketing efforts towards those subgroups.

Question 2

The business market consists of four broad segments: producers,resellers,governments,and regions.

Accepted Answer

The four segments are producers,resellers,governments,and institutions.

Question 3

Clearing Skies Press published a book by Robert Ruark entitled Keeping the Baby Alive Till Your Wife Gets Home.It is an advice book for new fathers.The market for this book is based on demographics.

Accepted Answer

The book is targeted towards new fathers, which is a demographic market.

Question 4

Markets are always segmented by at least two variables.

Accepted Answer

Although it is less precise,single-variable segmentation is possible;it has the advantage of being simpler and easier to use than multiple-variable segmentation.

Question 5

Company characteristics,such as geographic location,type of company,company size,and product use,can be important segmentation variables.

Accepted Answer

Company characteristics such as geographic location, type of company, company size, and product use are commonly used as segmentation variables in marketing. These variables help marketers to identify and target different segments of customers with tailored marketing messages or products.

Question 6

The slogan used by Apple to promote the iPhone,"There's an app for that," indicates the company relies heavily on benefit segmentation variables.

Accepted Answer

Benefit segmentation involves dividing a market into groups based on the different benefits that customers seek from a product or service. Apple's slogan "There's an app for that" implies that there is a wide range of apps available to meet the different needs and wants of iPhone users, indicating that the company relies heavily on benefit segmentation variables.

Question 7

A segmentation plan must produce segments that are accessible-that is,the firm must be able to reach members of targeted segments with customized marketing mixes.

Accepted Answer

This statement is true. In order for a segmentation plan to be effective, the segments identified must be accessible, which means that the company must be able to reach and communicate with members of the targeted segments in order to provide customized marketing mixes that resonate with their specific needs and preferences. Without access to the target audience, the segmentation strategy will not yield the desired results.

Question 8

The 80/20 principle implies that the majority of all demand is due to a minority of the customers.

Accepted Answer

The 80/20 principle, also known as the Pareto principle, states that roughly 80% of effects come from 20% of causes. In terms of business or sales, this can mean that 80% of a company's revenue comes from just 20% of its customers. Therefore, the majority of all demand is due to a minority of the customers.

Question 9

U.S.paint manufacturers traditionally use different formulae for developing paint to be used in the humid Southeast,the frigid Midwest,and the hot and dry Southwest.This is an example of how demographic segmentation is used.

Accepted Answer

Regional marketing is an example of using geographic segmentation variables.

Question 10

Geodemographic segmentation combines geographic,demographic,and lifestyle segmentations.

Accepted Answer

Geodemographic segmentation utilizes a combination of geographic information, demographic information, and information about individuals' lifestyles to create targeted marketing strategies.

Question 11

Clorox describes individuals who buy lots of cleaning products as heavy users.This is an example of how companies use benefit segmentation.

Accepted Answer

Usage-rate segmentation usually describes product usage with categories like heavy and light.

Question 12

Until the 1990s,few firms practiced market segmentation.

Accepted Answer

Firms practiced market segmentation after the 1960s.

Question 13

In the United States,women tend to be the key household decision-makers for many products,such as home furnishing purchases,vacations,and autos.

Accepted Answer

This statement is true. Studies have shown that women make most household purchase decisions, including home furnishing purchases, vacation choices, and the selection of autos.

Question 14

Fisher-Price developed a line of toys for infants in China.Babies make up the market for these products.

Accepted Answer

Infants can't make purchases and,therefore,cannot be called a market.Their parents would constitute a market.

Question 15

In market segmentation,individual psychographic variables can be combined with other variables to provide more detailed descriptions of market segments.

Accepted Answer

This statement is true. Psychographic variables can be combined with demographic, geographic, and behavioral variables to create richer, more comprehensive market segments. For example, a company might combine psychographic variables such as values, lifestyles, and personality traits with demographic variables such as age, income, and education level to create a segment of environmentally conscious consumers who are also affluent and well-educated.

Question 16

Generation Xers account for half of all spending in the United States.

Accepted Answer

That distinction belongs to Baby Boomers,those born between 1946 and 1964.

Question 17

Research has shown that most Hispanic Americans are insulted when retailers attempt to serve them in Spanish.Hispanic Americans overwhelmingly prefer to conduct business in English-even if they are bilingual-in order to demonstrate that they are "true Americans."

Accepted Answer

Research actually indicates that one-fourth of Hispanic Americans must be served in Spanish if retailers want their business.

Question 18

A market segmentation study done by the University of Thessaly in Greece classified recreational skiers in terms of their gender,age,and income levels.The study used psychographic segmentation variables.

Accepted Answer

These are examples of demographic segmentation variables.

Question 19

A market segment is deemed to have substantiality if it contains a large number of potential customers.

Accepted Answer

Substantiality of a segment refers to a segment being large enough to warrant developing and maintaining a special marketing mix.This does not necessarily require large numbers of potential customers.

Question 20

While it is important to understand potential business customers' buying processes,this is not a helpful segmentation basis.

Accepted Answer

Many business marketers find it helpful to segment customers and prospective customers on the basis of how they buy.

Quiz 8: Segmenting and Targeting Markets