Question 1

The purpose of market segmentation is to
A)​change consumer attitudes and beliefs toward a product
B)divide a market into submarkets of equal size and equal number of customers​
C)group a large number of markets together, enabling a company to serve them simultaneously
D)enable a marketer to tailor marketing mixes to meet the needs of one or more specific segments​

Accepted Answer

Market segmentation is the process of dividing a market into smaller groups of consumers with similar needs or characteristics. The purpose of this is to enable marketers to tailor their marketing mixes (product, price, promotion, and place) to meet the specific needs and preferences of each segment. This can help companies to better target their marketing efforts, increase customer satisfaction, and ultimately improve their bottom line.

Question 2

Cannibalization occurs when the sales of an existing product remain the same despite the introduction of a new product.

Accepted Answer

Cannibalization occurs when the introduction of a new product negatively impacts the sales of an existing product, resulting in a decrease in its revenue. Therefore, the statement "the sales of an existing product remain the same despite the introduction of a new product" is not true in the context of cannibalization.

Question 3

Promotion is one of the components that form a marketing mix.

Accepted Answer

Promotion is indeed one of the components that form a marketing mix, alongside product, price, and place. Promotion refers to the communication activities that aim to inform, persuade, and remind target audiences about a product or service and its benefits. Examples of promotional activities include advertising, sales promotion, public relations, personal selling, and direct marketing.

Question 4

Which of the following statements is true of market segmentation?
A)It helps marketers to design marketing mixes to match the characteristics of one or more segments​
B)It helps marketers to adopt a single market mix to meet the needs of customers in the market
C)It helps marketers to adopt a single market mix to meet the needs of customers in the market​
D)​It helps marketers to focus on satisfying customer needs rather than meeting the organization's objectives.

Accepted Answer

Market segmentation is the process of dividing a larger market into smaller groups of customers with similar needs, wants, or characteristics. This helps marketers to design specific marketing mixes that will match the unique characteristics of each segment, allowing for more effective targeting and customization of marketing efforts. Option B is incorrect because adopting a single market mix would not cater to the diverse needs and preferences of multiple segments. Option C is incorrect because the statement contradicts itself, stating both adopting a single market mix and meeting the needs of customers in the market. Option D is partially correct but incomplete, as market segmentation is not only about satisfying customer needs but also about maximizing profitability for the organization.

Question 5

When making a purchase,satisficers consider numerous suppliers,solicit bids,and study all proposals carefully before selecting one.

Accepted Answer

Satisficers aim to make a decision that is "good enough" rather than optimal, so they typically do not engage in extensive research or comparisons.

Question 6

Terra Corp.produces a wide range of furniture,such as cabinets,book cases,and wardrobes.It divides its consumer market into several groups of people who have similar interests in wooden furniture.In this case,dividing its consumer market:
A)enables Terra Corp. to meet the markets' need with a single marketing mix. ​
B)enables Terra Corp. to define customer needs and wants precisely
C)eliminates the need for defining marketing objectives​
D)​eliminates the need for defining marketing objectives

Accepted Answer

By dividing its consumer market into several groups of people who have similar interests in wooden furniture, Terra Corp. is able to define customer needs and wants precisely for each group. This allows for more targeted and effective marketing efforts.

Question 7

A market segment is a subgroup of people or organizations having different characteristics that cause them to have distinct product needs.

Accepted Answer

The answer of A market segment is a subgroup of...

Question 8

The distinctions between products created through product differentiation can be either real or perceived.

Accepted Answer

Products can be differentiated in terms of real differences such as features or quality, as well as perceived differences such as branding or marketing.

Question 9

Which of the following is a criterion for successful market segmentation?
A)​The market segment must comprise people with different product needs
B)The market segment must comprise people of different characteristics
C)The market segment must be large enough to warrant developing and maintaining a special marketing mix.​
D)​The market segment must be divided according to the North American Industry Classification System

Accepted Answer

For successful market segmentation, the market segment must be large enough to justify the costs associated with developing and maintaining a unique marketing mix. This means that the segment must be profitable, have growth potential and be accessible. Simply segmenting based on product needs or different characteristics is not enough if the segment is not large enough to support a unique marketing strategy. The North American Industry Classification System is a method of categorizing companies based on the industries in which they operate and is not relevant to market segmentation.

Question 10

Single-variable segmentation is clearly more precise than multiple-variable segmentation

Accepted Answer

Multiple-variable segmentation considers more factors, allowing for a more nuanced and precise understanding of segments compared to single-variable segmentation.

Question 11

Dynamic segmentation approaches adjust to fit the changes that occur in customers' lives.

Accepted Answer

Dynamic segmentation approaches, as the name suggests, are designed to adapt and account for the changes that occur in a customer's life - such as changes in purchasing behavior, demographics or lifestyle. Therefore, this statement is true.

Question 12

A market is people or organizations with needs or wants and with the ability and the willingness to buy.

Accepted Answer

This is the definition of a market.

Question 13

Which of the following is a similarity between a stock market and a labor market?
A)Both adopt a barter system to facilitate the exchange of products​
B)Both are composed of people who are unwilling to spend large sums of money for products or services.​
C)Both are composed of people with specific wants that can be satisfied by particular product categories
D)​Both deal in selling high-end, expensive products

Accepted Answer

Both markets are composed of individuals with specific wants and needs that are satisfied by certain products or services. In the stock market, investors have a specific investment objective and seek certain types of stocks that align with that objective. Similarly, in the labor market, employers have specific job requirements and seek employees with skills, knowledge, and experience that align with those requirements. Both markets involve matching the needs of one group of individuals with the offerings of another group of individuals.

Question 14

_____ refers to segmenting markets by region of a country or the world,market size,market density,or climate.
A)​Geographic segmentation
B)Benefit segmentation
C)Demographic segmentation​
D)​Usage-rate segmentation

Accepted Answer

Geographic segmentation refers to dividing a market based on geographic criteria such as region, climate, or population density. This helps companies tailor their marketing efforts to meet the specific needs and preferences of customers in different regions or climates.

Question 15

With the personal and targeted nature of customer relationship management,consumers spend more time making purchase decisions.

Accepted Answer

Customer relationship management aims to streamline and personalize the purchasing process, potentially reducing the time consumers spend on making purchase decisions by providing relevant information and offers.

Question 16

The final step in market segmentation is selecting segmentation descriptors

Accepted Answer

The answer of The final step in market segmentation is...

Question 17

A firm's marketing mix is intended to bring about a mutually satisfying exchange relationship with a market.

Accepted Answer

A firm's marketing mix includes the product, price, promotion, and place (distribution), which are all aimed at creating a mutually satisfying exchange relationship with a particular market or target audience. The goal is to provide customers with value through the product or service being offered, at a price that they are willing to pay, and through effective communication and distribution channels that reach them where and when they need it. Ultimately, a successful marketing mix should lead to customer satisfaction, loyalty, and repeat business, while also achieving the company's financial goals.

Question 18

For a successful market segmentation,one marketing mix cannot be used for another market segment.

Accepted Answer

The answer of For a successful market segmentation,one marketing mix...

Question 19

Market segmentation helps decision makers to more accurately define marketing objectives and better allocate resources.

Accepted Answer

Market segmentation involves dividing a heterogeneous market into smaller, more homogenous groups of consumers who share similar needs, characteristics, behaviors, or preferences. By doing so, decision makers can gain a deeper understanding of their target customers, tailor their marketing offerings and messages to meet their specific needs and preferences, and allocate their marketing resources more effectively and efficiently. Thus, market segmentation helps decision makers to set more clear and achievable marketing objectives, identify growth opportunities, optimize product design, pricing, promotion, and distribution strategies, and ultimately increase market success and profitability.

Question 20

Nalpas Inc.,an apparel company,manufactures clothes for men,women,and children.It further divides its core customers on the basis of demographic variables such as income,ethnic background,and family life cycle.These divisions are known as _____.
A)​positioning bases
B)market segments
C)perceptual maps
D)market positions​

Accepted Answer

Nalpas Inc. is dividing its customers into different groups based on their demographic variables, which is a common practice in market segmentation. Therefore, the correct choice is market segments. Positioning bases refer to the specific variables used by a company to create product differentiation in the eyes of its customers. Perceptual maps are used to visually represent how customers perceive competing products or brands in a particular market. Market positions refer to the specific position that a company's products or brands occupy in the minds of its target customers relative to its competitors.

Quiz 8: Segmenting and Targeting Markets

The purpose of market segmentation is to

Cannibalization occurs when the sales of an existing product remain the same despite the introduction of a new product.

Promotion is one of the components that form a marketing mix.

Which of the following statements is true of market segmentation?

When making a purchase,satisficers consider numerous suppliers,solicit bids,and study all proposals carefully before selecting one.

Terra Corp.produces a wide range of furniture,such as cabinets,book cases,and wardrobes.It divides its consumer market into several groups of people who have similar interests in wooden furniture.In this case,dividing its consumer market: