Question 1

Teen Mania Inc., a company marketing adventure sports merchandise for teenagers, targets the world's teenagers, who have similar needs and buying behavior even though they are located in different countries. Which market segmentation is evident here?

Accepted Answer

Intermarket segmentation is evident, as the company is targeting teenagers with similar needs and buying behavior across different countries. This is different from other types of segmentation such as income, psychographic, gender, or occasion segmentation which would be based on more specific characteristics such as income level, personality traits, gender, or specific occasions.

Question 2

Double Drill Inc. segments its foreign markets by per capita income. This firm segments the international markets based on ________.

Accepted Answer

Double Drill Inc. segments its foreign markets by per capita income, which is an economic factor.

Question 3

Anchor Tractors focuses on selling its farm equipment in North America and Europe. It has not yet considered expanding into the Middle East. Which factor is likely most important in this decision regarding expansion?

Accepted Answer

Political factors such as stability, trade regulations, and government policies play a crucial role in international expansion decisions. The Middle East region is known for its political instability and geopolitical conflicts, making it a risky market for businesses to expand into. Therefore, Anchor Tractors may have considered the political situation in the region and decided not to expand there.

Question 4

Using ________ segmentation, marketers form segments of consumers who have similar needs and buying behaviors even though they are located in different countries.

Accepted Answer

Intermarket segmentation involves forming segments of consumers who have similar needs and buying behaviors but are located in different countries. This approach is useful for global companies looking to expand their market reach and tailor their products or services to specific regions or cultures. Psychographic segmentation is based on consumers' interests, values, and attitudes, while demographic segmentation uses characteristics such as age, gender, income, and education to form segments. Occasion segmentation is based on specific occasions or events that trigger a consumer's need for a product or service, and benefit segmentation segments consumers based on the benefits they seek from a product or service.

Question 5

________ segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.

Accepted Answer

Differentiable segments are those that are distinct from one another and respond differently to marketing mix elements. This is important for companies to target specific segments with tailored marketing efforts that will resonate with their unique needs and preferences.

Question 6

Marketers often segment international markets according to the type and stability of government. In such instances, they segment markets based on ________.

Accepted Answer

Marketers segment international markets according to the type and stability of government, which falls under political factors. This is because political factors can greatly affect a company's ability to do business within a country.

Question 7

Market segments that can be effectively reached and served are ________.

Accepted Answer

Market segments that can be effectively reached and served are described as "accessible," meaning they can be reached and served through marketing efforts.

Question 8

Papillon, a popular retailer of chic women's clothing, segments its market according to consumer lifestyles. Papillon most likely uses ________ segmentation for segmenting its market.

Accepted Answer

Papillon segments its market according to consumer lifestyles, which is an example of psychographic segmentation. This involves dividing the market based on personality characteristics, values, interests, and attitudes rather than demographic or geographic factors. By targeting consumers with similar psychographic profiles, Papillon can tailor its products and marketing messages to better meet their needs and preferences.

Question 9

Orion Inc. markets luxury watches. It targets the wealthy global elite segment, regardless of their geographic location. Orion most likely uses ________ segmentation.

Accepted Answer

Orion Inc. targets a specific segment of wealthy individuals across different geographic locations, which is characteristic of cross-market (or intermarket) segmentation.

Question 10

Business information services such as Experian Marketing Services and Nielsen help marketers to ________.

Accepted Answer

Business information services such as Experian Marketing Services and Nielsen help marketers to segment people and locations into marketable groups of like-minded consumers, allowing for targeted and more effective marketing strategies.

Question 11

Venus Inc., a company designing and marketing branded diamond jewelry, targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________ segmentation.

Accepted Answer

Intermarket segmentation refers to dividing consumers into groups based on different countries or regions, targeting them with similar marketing strategies. Venus Inc. is targeting wealthy consumers in different countries with similar needs and behaviors, making it an example of intermarket segmentation. Loyalty, life-cycle, income, and psychographic segmentation are based on different criteria.

Question 12

________ segmentation assumes that nations close to one another will have many common traits and behaviors.

Accepted Answer

Geographic segmentation is based on the physical location of customers and assumes that people who live in close proximity have similar needs and wants based on environmental and cultural factors.

Question 13

Bailey's Burgers promotes the Bailey's Jumbo Burger as a fun snack for teens and young adults. In this instance, Bailey's Burgers is practicing ________ segmentation.

Accepted Answer

Bailey's Burgers is segmenting its market based on age and life-cycle by targeting teens and young adults with their promotion of the Bailey's Jumbo Burger as a fun snack.

Question 14

Pacific Fisheries divides its customers into different regional units, such as Asia, Australia, and the Americas. This is an example of ________ segmentation.

Accepted Answer

Pacific Fisheries is dividing its customers based on their geographic location, hence this is an example of geographic segmentation. Demographic segmentation is based on customer's characteristics such as age, gender, income, etc. Psychographic segmentation is based on customer's lifestyle and personality. Occasion segmentation is based on the timing of customer’s purchasing, while benefit segmentation is based on how the customer values the benefits that the product or service provides.

Question 15

When an effective program can be designed for attracting and serving a particular segment, the segment is best described as ________.

Accepted Answer

The answer of When an effective program can be designed...

Question 16

A market segment that is large enough or profitable enough to serve is ________.

Accepted Answer

A market segment must be substantial, meaning it is large enough or profitable enough to serve, in order for it to be a viable target for a company. Measurable, accessible, profitable, and differentiable are also important characteristics of a market segment, but they do not necessarily indicate its overall size or potential profitability.

Question 17

An American cola-manufacturing company that primarily targets rebellious and adventurous people most likely uses ________ segmentation.

Accepted Answer

Psychographic segmentation categorizes consumers based on their personal characteristics, values, and lifestyles. The cola company's targeting of rebellious and adventurous individuals suggests they are using psychographic segmentation to target consumers with similar personalities and behaviors.

Question 18

When the size, purchasing power, and profile of a market segment can be calculated, the market is ________.

Accepted Answer

The term "measurable" refers to the ability to quantify the characteristics of a market segment, such as its size, purchasing power, and profile. Once these characteristics are determined, companies can develop strategies to effectively target and serve this segment.

Question 19

Which of the following refers to a cultural factor in the context of segmenting international markets?

Accepted Answer

Values and attitudes are cultural factors that influence consumer behavior in international markets. These include beliefs, customs, traditions, religion, and social norms. For example, some cultures place a high value on individualism, while others prioritize collectivism. Understanding these cultural differences can help companies tailor their marketing strategies to appeal to local consumers. Choices A, B, C, and D are all economic or political factors that can impact a country's business environment but are not directly related to cultural segmentation.

Question 20

An Irish company that manufactures umbrellas and ponchos primarily targeting consumers during the winter months is using ________ segmentation.

Accepted Answer

The company is targeting consumers based on the specific occasion of winter, which is a time when there is increased demand for umbrellas and ponchos due to weather conditions.

Quiz 7: Customer Value-Driven Marketing Strategy: Creating Value for Target Customers