Question 1

Chevrolet is producing a new seven-passenger van with all-wheel drive. Which of the following would be the best variables for segmenting the market for this new model?
A)Gender and age
B)Geographic location and family life cycle
C)Income and geographic location
D)Family life cycle and gender
E)Geographic location and gender

Accepted Answer

The best variables for segmenting the market for a seven-passenger van with all-wheel drive would be geographic location and family life cycle. Geographic location can be a significant factor in determining whether all-wheel drive is necessary, as those living in areas with harsh winters or mountainous terrain may be more likely to require this feature. The family life cycle is also important as families with multiple children or those who frequently travel with extended family or friends would be the target market for a seven-passenger van.

Question 2

Which of the following products is most likely to have its market segment based on age?
A)Nike shoes
B)Lipton Iced Tea
C)Bic pens
D)Legos
E)Carpet

Accepted Answer

Legos are most likely to have a market segment based on age, as they are primarily marketed towards children and teenagers. Other products listed, such as Nike shoes, Lipton Iced Tea, Bic pens, and Carpet, may have market segments based on factors such as gender, lifestyle, or income, but not necessarily age.

Question 3

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?
A)Micromarketing
B)Population
C)Market density
D)MSA
E)PMSA

Accepted Answer

Market density refers to the number of potential customers in a defined area, which can help marketers determine the potential demand for their products and services in that area. Micromarketing refers to targeting specific individuals or households, while population, MSA, and PMSA refer to broader geographic categories.

Question 4

Seventh Generation is a company producing products that limit the amount of negative impact on the environment. Its product line includes dishwashing liquid, toilet paper, paper towels, baby wipes, and laundry detergent, to name a few. Seventh Generation is now interested in producing a new line of clothing, mostly T-shirts, shorts, and long pants for both men and women. Its research indicates that they should use psychographic segmentation in their marketing strategy. Which group of segmentation variables will Seventh Generation be using?
A)Geographic location
B)Age, sex, and socioeconomic characteristics
C)Social class variables
D)Personality characteristics, motives, and lifestyles
E)Family life cycle, social class, and religion

Accepted Answer

Psychographic segmentation focuses on personality characteristics, motives, and lifestyles, which makes D the correct choice for Seventh Generation's marketing strategy. This type of segmentation is useful when a company aims to identify the values, interests, attitudes, and personality traits of its target audience, and Seventh Generation can use it to develop a product line that aligns with their customers' values and beliefs. The other segmentation variables such as geographic location (A), age, sex, and socioeconomic characteristics (B), social class variables (C), and family life cycle, social class, and religion (E) are not as relevant when it comes to psychographic segmentation.

Question 5

If Campbell were to offer single-serving "Soup for One" packages to household markets, it would be using segmentation based on
A)income.
B)age.
C)preferences.
D)geographic considerations.
E)family life cycle.

Accepted Answer

The answer of If Campbell were to offer single-serving "Soup...

Question 6

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is
A)motive.
B)social class.
C)personality.
D)stage in family life cycle.
E)lifestyle.

Accepted Answer

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinions is commonly referred to as lifestyle. This variable encompasses a wide range of factors, including hobbies, values, attitudes, and behaviors, all of which can play a significant role in how individuals perceive and interact with products and services. While social class, personality, motive, and stage in the family life cycle can all influence consumer behavior, they do not encompass the full range of factors that are considered when defining lifestyle.

Question 7

When using personality characteristics as a market segmentation variable, marketers generally
A)conduct personality assessments of their potential target market to determine which personality characteristics they possess.
B)use research developed by clinical psychologists to determine which personality characteristics consumers using their products are most likely to have.
C)use generic characteristics that all members of the population have.
D)use a positively viewed characteristic they assume much of their target market has or would like to have.
E)conduct a series of focus groups to determine both the positive and negative characteristics members of their target market are perceived to have.

Accepted Answer

When using personality characteristics as a market segmentation variable, marketers typically use a positively viewed characteristic that they assume much of their target market has or would like to have. This is because marketers generally want to associate their products with positive attributes and characteristics that consumers aspire to possess. Additionally, conducting personality assessments or relying on clinical psychology research can be costly and time-consuming, and generic characteristics may not be specific enough to effectively segment the target market. Lastly, focus groups may provide some useful insights, but may not be representative of the entire target market.

Question 8

Family life cycle is most typically based on
A)income.
B)geographic location.
C)marital status and age of children.
D)occupation.
E)buying power.

Accepted Answer

Family life cycle models are typically based on the marital status and age of children, as these factors tend to have the most significant impact on the behaviors, needs, and preferences of families. Different stages of the family life cycle include newlyweds, families with young children, families with teenagers, launching families (with adult children leaving home), and older couples. Income, geographic location, occupation, and buying power may also influence family life cycle, but these factors are generally not used as the primary basis for defining the stages of the family life cycle.

Question 9

A marketer that targets customers based on marital status and the presence and age of children is using
A)behavioristic segmentation.
B)lifestyle variables.
C)psychographic variables.
D)family life cycle.
E)phase of life segmentation.

Accepted Answer

The marketer is using family life cycle segmentation, which is based on the stages that families go through as they mature over time. Marital status and the presence and age of children are key criteria used in family life cycle segmentation.

Question 10

Systems such as Acorn and PRIZM provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid
A)behavioristic segmentation.
B)geodemographic segmentation.
C)market density analysis.
D)demographic segmentation.
E)geographic segmentation.

Accepted Answer

Both Acorn and PRIZM are geodemographic segmentation systems that use lifestyle and demographic information to classify neighborhoods into different segments. Therefore, the best choice is B, which refers to geodemographic segmentation.

Question 11

Demographic variables such as income and occupation, as well as how people spend their time and the importance of things in their surroundings, are all factors considered in ____ segmentation.
A)psychographic
B)social class
C)lifestyle
D)personality
E)family life cycle

Accepted Answer

Lifestyle segmentation involves examining how people live, how they spend their time, and what they consider important in their environment. This approach looks at activities, interests, and opinions to categorize consumers.

Question 12

Which of the following is the division of a market according to benefits that consumers want from the product?
A)Geodemographic segmentation
B)Market density
C)Benefit segmentation
D)Concentrated segmentation
E)Differentiated segmentation

Accepted Answer

Benefit segmentation is a type of market segmentation where consumers are divided based on the benefits they seek from a particular product. This helps in identifying the specific needs and preferences of consumers and providing targeted marketing messages to them. Geodemographic segmentation is the division of a market based on geographic and demographic characteristics, market density refers to the number of potential customers within a particular geographic area, concentrated segmentation is a strategy where a company focuses on serving a specific niche within the market, and differentiated segmentation is a strategy where a company targets multiple segments with different marketing messages.

Question 13

Which of the following is an example of a behavioristic segmentation variable?
A)Family size
B)Climate
C)Age
D)Usage rate
E)Personality characteristics

Accepted Answer

Usage rate is an example of behavioristic segmentation variable as it refers to how frequently or infrequently a customer uses a particular product or service. This variable focuses on observable behaviors and can help companies identify and target their most loyal customers, frequent buyers, and occasional users.

Question 14

Although it may seem logical to target higher-income consumers, many marketers choose to target lower-income segments because
A)higher-income consumers are harder to reach.
B)higher-income consumers require more company resources.
C)higher-income consumers represent a much larger population globally.
D)lower-income consumers require fewer company resources.
E)lower-income consumers represent a much larger population globally.

Accepted Answer

Lower-income consumers represent a much larger population globally, which makes them an attractive target market for companies. Additionally, reaching higher-income consumers may require more resources and may be more challenging, as they can be harder to persuade and may have a wider range of choices. On the other hand, lower-income consumers may be more loyal to brands that offer value for money, and may be more willing to try new products and services.

Question 15

With its Venus razor, Gillette was the first marketer to offer a triple blade razor specifically designed for women. This is an example of market segmentation using ____ variables.
A)demographic
B)psychographic
C)geographic
D)family life cycle
E)product-use

Accepted Answer

Demographic variables are characteristics of a population such as age, gender, income, education level, etc. In this case, Gillette segmented the market based on gender, specifically designing a razor for women.

Question 16

Which of the following is the biggest drawback to using psychographic variables?
A)They are very costly to collect.
B)They are difficult to measure.
C)They give poor information about consumer needs.
D)They do not reflect socioeconomic characteristics of consumers.
E)The resulting segments are difficult to be reached.

Accepted Answer

Psychographic variables are difficult to measure as they rely on complex measures of personality, values, lifestyles, and attitudes, which are subjective and susceptible to biases. Due to this, there may be limitations in the accuracy and reliability of the data collected, which would undermine the use of these variables to segment consumers.

Question 17

Population density and city size are ____ variables used for market segmentation.
A)geographic
B)demographic
C)psychographic
D)environmental
E)geodemographic

Accepted Answer

The answer of Population density and city size are ____...

Question 18

Kelly's Kids is a home-based business that sells high-quality children's clothing at premium prices using in-home parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income. Kelly's Kids is using ____ variables to segment its market.
A)demographic
B)psychographic
C)sociographic
D)behavioristic
E)geographic

Accepted Answer

Kelly's Kids is segmenting its market based on demographic variables such as age of children, income level of families, and potentially even geographic location of its target market. This allows the company to tailor its messaging and products to a specific group of consumers with similar characteristics and needs.

Question 19

Micromarketing is
A)a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets.
B)developing a very specific marketing mix that will effectively meet the needs of only a small segment of the market.
C)marketing efforts that are tightly controlled by high-level executives in the organization.
D)a way to segment the market to meet the needs of individuals with the same motives and personality attributes.
E)creating advertising that is so specific to a certain type of individual that few people outside that micromarket will respond to the message.

Accepted Answer

Micromarketing involves targeting very small geographic markets, as opposed to broader segments, in order to more precisely meet the needs of consumers in those markets.

Question 20

If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is
A)lifestyle.
B)motives.
C)personality.
D)benefit expectations.
E)personality attributes.

Accepted Answer

Segmenting a market on the basis of reasons for purchasing a particular product refers to segmenting by motives. Customers have different motives for purchasing products, and companies can use this as a segmentation variable to create targeted marketing strategies. For example, a company may segment its market based on customers' motives for buying a car, such as fuel efficiency, comfort, or design.

Quiz 5: Target Market Segmentation and Evaluation

Chevrolet is producing a new seven-passenger van with all-wheel drive. Which of the following would be the best variables for segmenting the market for this new model?

Which of the following products is most likely to have its market segment based on age?

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?

If Campbell were to offer single-serving "Soup for One" packages to household markets, it would be using segmentation based on

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is

When using personality characteristics as a market segmentation variable, marketers generally

Family life cycle is most typically based on

A marketer that targets customers based on marital status and the presence and age of children is using

Systems such as Acorn and PRIZM provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid

Demographic variables such as income and occupation, as well as how people spend their time and the importance of things in their surroundings, are all factors considered in ____ segmentation.

Which of the following is the division of a market according to benefits that consumers want from the product?

Which of the following is an example of a behavioristic segmentation variable?

Although it may seem logical to target higher-income consumers, many marketers choose to target lower-income segments because

With its Venus razor, Gillette was the first marketer to offer a triple blade razor specifically designed for women. This is an example of market segmentation using ____ variables.

Which of the following is the biggest drawback to using psychographic variables?

Population density and city size are ____ variables used for market segmentation.

Kelly's Kids is a home-based business that sells high-quality children's clothing at premium prices using in-home parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income. Kelly's Kids is using ____ variables to segment its market.

Micromarketing is

If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is