Question 1

For some consumer products such as cigarettes, soft drinks, and candy that have a low per-unit cost, income is often a more valuable segmentation variable than population.

Accepted Answer

False

Question 2

Ideally, GDP and other measures of national income converted to U.S.dollars should be calculated on the basis of purchasing power parities or through direct comparisons of actual prices for a given product.

Accepted Answer

Calculating GDP and other measures of national income based on purchasing power parities or actual price comparisons provides a more accurate reflection of the real value of goods and services produced in different countries, compared to just converting to U.S. dollars at market exchange rates which can distort the picture due to currency fluctuations.

Question 3

A fact found by demographic segmentation is that by the year 2030, 20% of the U.S.population or 70 million will be 65 years old or older.

Accepted Answer

This is a true fact found by demographic segmentation.

Question 4

About two-thirds of world GNI is generated in the Triad countries, whereas only about 12% of the world's population is located in those countries.

Accepted Answer

This statement is true. The Triad countries (United States, European Union, and Japan) account for about 66% of the world's Gross National Income (GNI), while only having around 12% of the world's population.

Question 5

The fact that significant numbers of pizza-loving consumers are found in many countries indicates that they are eating the exact same thing in all parts of the world.

Accepted Answer

Pizza can vary significantly in ingredients, preparation, and style across different regions and cultures, even though it is popular worldwide.

Question 6

Categories such as "successful idealists" and "affluent materialists" can be used to describe psychographic segments.

Accepted Answer

Yes, psychographic segments are often categorized based on a combination of demographic and psychographic characteristics such as attitudes, values, interests, and behaviors. Categories such as "successful idealists" and "affluent materialists" are examples of psychographic segments.

Question 7

The vast majority of India's population comprises a "bullock cart" segment whose households lack most comforts but typically own a television.

Accepted Answer

The statement says that the vast majority of India's population belongs to a "bullock cart" segment, which means they lack most comforts but typically own a television. This implies that the majority of the population does not have access to basic amenities but still owns a television, which is a form of entertainment.

Question 8

Sushi, Falafel, Tandoori Chicken or Pizza are in demand in many parts of the world.This phenomenon can be due to pluralization of consumption and segment simultaneity.

Accepted Answer

Pluralization of consumption refers to the increasing diversity of consumer preferences and the tendency for individuals to seek out a variety of different experiences and products. Segment simultaneity refers to the fact that individuals may have multiple identities or roles that influence their consumption preferences. Both of these factors contribute to the demand for diverse cuisines such as sushi, falafel, tandoori chicken, and pizza in many parts of the world.

Question 9

"Frugal Engineering" and "Reverse Innovation" are some of the terms that GE, Proctor & Gamble, Siemens, and Unilever are using to describe efforts to penetrate more deeply into emerging markets.

Accepted Answer

The statement is true as these terms have been used by various companies to describe their efforts to expand their presence in emerging markets.

Question 10

The process of global market segmentation begins with the choice of one or more variables to use as a basis for grouping customers.

Accepted Answer

This statement is true. The first step in global market segmentation is to select one or more variables such as customer demographics or psychographics to group customers.

Question 11

Using averages alone, it is possible to underestimate a market's potential, for example, fast-growing, higher-income segments are present both in India and China.

Accepted Answer

Averages can mask the presence of various subgroups with different characteristics and thus restrict our understanding of market potential. In the case of India and China, although they may have lower-level averages, they possess a lucrative fast-growing and higher-income group that would not be captured by the averages alone.

Question 12

The United States ranks number one among nations in terms of both per capita income and in terms of income adjusted for purchasing power for the year 2009.

Accepted Answer

In 2009, the United States did not rank number one in terms of per capita income or income adjusted for purchasing power. Other countries, such as Luxembourg and Norway, often rank higher in these measures.

Question 13

The concentration of income in the high-income and large-population countries means that a company can be "global" by targeting buyers in 10 or fewer countries.

Accepted Answer

This statement is true as the concentration of income in high-income and large-population countries means that targeting buyers in just a few countries can be enough for a company to achieve global success. This is because these countries have a large consumer base and high purchasing power, making them attractive markets for companies.

Question 14

For behavior segmentation, marketers use the 80/20 rule when assessing the consumers' usage rate, which means that 20% of the company's revenues or profits are accounted for by 80% of the firm's products or customers.

Accepted Answer

The 80/20 rule, or Pareto Principle, in the context of behavior segmentation suggests that 80% of a company's revenues or profits are accounted for by 20% of its customers, not its products.

Question 15

In 2009, the 10 most populous countries in the world account for just under 50% of world income; whereas the 10 most populous countries in the world account for roughly 60% of the world's population.

Accepted Answer

The statement is true as it correctly states that the top 10 most populous countries account for around 60% of the world's population, while they account for just under 50% of the world's income.

Question 16

A psychographic study showed that Porsche buyers could be divided into several distinct categories, one consisting of "Top Guns" who buy Porsches and expect to be noticed.

Accepted Answer

This statement presents a finding from a psychographic study about Porsche buyers and their distinct categories, including a group called "Top Guns" who purchase Porsches with the expectation of being noticed.

Question 17

Global marketers must determine whether a standardized or an adapted marketing mix is required to best serve the wants and needs of the consumers.

Accepted Answer

Global marketers must consider cultural and regional differences when determining the appropriate marketing mix, and may need to adapt elements of their strategy to effectively reach their target audience in different markets. However, there may be instances where a standardized approach is appropriate, particularly if the product or service being offered has universal appeal. Ultimately, the decision between a standardized or adapted marketing mix will depend on the specific product or service, the target market, and the company's overall global marketing strategy.

Question 18

In industrialized countries, a significant portion of national income is the value of goods and services that would be free in a poor country.

Accepted Answer

This statement is true. In industrialized countries, many basic goods and services such as healthcare, education, and clean water are often provided by the government and are free or heavily subsidized for the population. In contrast, in poorer countries, access to these same goods and services may be limited or require payment, which can make them inaccessible for many people living in poverty. Therefore, the value of these free or subsidized goods and services in industrialized countries represents a significant portion of national income in comparison to poorer countries.

Question 19

Global market segmentation is based on the premise that companies should attempt to identify consumers in different countries who share similar needs and desires.

Accepted Answer

This statement is true. Global market segmentation involves dividing the world market into distinct groups of consumers who have similar needs and wants, in order to develop targeted marketing strategies for each group.

Question 20

Sometimes it is preferable to market to a particular age group rather than a mind-set; in such an instance psychographic studies can help marketers arrive at a deeper understanding of consumer behavior than is possible with traditional segmentation variables.

Accepted Answer

The answer of Sometimes it is preferable to market to...

Quiz 7: Segmentation, Targeting, and Positioning