Question 1

Few companies use only demographic variables in segmenting the market. Typically, they also add psychographic and geographic variables to the demographic information to determine the best approach to reach their target markets.

Accepted Answer

Companies tend to add psychographic and behavioral variables to the demographic information to determine the best approach to reach their target market.

Question 2

Two very popular classification systems based on zip codes are PRIZM and ACORN.

Accepted Answer

PRIZM and ACORN are popular classification systems based on zip codes.

Question 3

Business markets can be segmented based on similar variables as those used with consumer markets.

Accepted Answer

Business markets can be segmented using variables such as demographics, geographic location, and behavioral characteristics, similar to consumer markets.

Question 4

In assessing the effectiveness of a market segmentation approach, differential response is the extent to which marketers are capable of designing programs that can effectively serve the market segment.

Accepted Answer

Differential response is the extent to which market segments are easy to distinguish from each other and respond differently to company marketing strategies. If consumers are similar and/or have identical preferences-and this is hardly ever the case-there is no need for target marketing.

Question 5

In assessing the effectiveness of a market segmentation approach, actionability is the extent to which marketers are capable of designing programs that can effectively serve the market segment.

Accepted Answer

Actionability is the extent to which marketers are capable of designing programs that can effectively serve the market segment.

Question 6

In assessing the effectiveness of a market segmentation approach, accessibility is the ability to communicate with and reach the target market.

Accepted Answer

Accessibility is the ability to communicate with and reach the target market.

Question 7

In assessing the effectiveness of a market segmentation approach, measurability is the degree to which individual market segments are easy to identify and measure.

Accepted Answer

Measurability is the degree to which individual market segments are easy to identify and measure.

Question 8

In assessing the effectiveness of a market segmentation approach, substantiality is the degree to which individual market segments are easy to identify and measure.

Accepted Answer

Substantiality is the degree to which individual market segments are large enough to warrant investment.

Question 9

In assessing the effectiveness of a market segmentation approach, stability is the degree to which segment consumer preferences are stable over time.

Accepted Answer

Stability is the degree to which segment consumer preferences are stable over time.

Question 10

Frequently, small-and medium-size businesses are quite successful by best addressing the needs of a single market segment, or a niche.

Accepted Answer

Small and medium-sized businesses often thrive by focusing on a specific market segment, allowing them to tailor their products or services to meet the unique needs of that niche, leading to greater customer satisfaction and loyalty.

Question 11

Companies can use three main strategies to target their markets: differentiated, concentrated, and undifferentiated.

Accepted Answer

Companies can indeed use differentiated, concentrated, and undifferentiated strategies to target their markets, each focusing on different approaches to segment and address potential customers.

Question 12

Differentiated marketing is where the product is aimed at the entire market using a single marketing strategy.

Accepted Answer

Undifferentiated marketing is where the product is aimed at the entire market using a single marketing strategy. Differentiated marketing is a targeting strategy identifying market segments with different preferences for a particular product category and targeting each segment with different brands and different marketing strategies.

Question 13

Concentrated marketing is the process of selecting only one market segment and targeting it with one single brand and marketing strategy.

Accepted Answer

Concentrated marketing focuses on a single market segment, allowing a company to tailor its marketing efforts to meet the specific needs of that segment effectively.

Question 14

Undifferentiated marketing is the process of selecting only one market segment and targeting it with one single brand and marketing strategy.

Accepted Answer

Undifferentiated marketing is the process of targeting the broad market with one single brand and marketing strategy.

Question 15

While the undifferentiated marketing strategy may appear as the most efficient, marketers are aware that segment needs may be better served by tailoring their offering to a particular market segment.

Accepted Answer

Segment needs may be better served by tailoring their offering to a particular market segment, rather than using an undifferentiated marketing strategy.

Question 16

An attribute/benefit positioning strategy used a product's attributes and benefits to position it in the mind of a consumer relative to the product's price.

Accepted Answer

The attribute/benefit positioning strategy positions the product's attributes and benefits relative to competing brands, not relative to price.

Question 17

The price/quality positioning strategy position goods and services in terms of price and quality.

Accepted Answer

The price/quality positioning strategy involves placing products or services on a spectrum based on their price and perceived quality, helping consumers make purchasing decisions.

Question 18

The product user strategy focuses on a particular product use rather than on the product itself.

Accepted Answer

It focuses on the product user, not how the product is used.

Question 19

Products using a product class positioning strategy differentiates themselves as leaders in a product category, as they define it.

Accepted Answer

A product class positioning strategy involves positioning a product as a leader within a specific category by defining and differentiating it from competitors within that category.

Question 20

When a firm compares its brand to a competitor's brand, it is using a competitor positioning strategy.

Accepted Answer

A competitor positioning strategy involves the comparison of a brand to one or more competing brands.

Quiz 6: Marketing Segmentation