Question 1

Modern Maturity magazine is a publication that is sent to all AARP members,who by organization definition have to be at least 50 years old to join.The market segment for Modern Maturity magazine was defined by:

Accepted Answer

The market segment for Modern Maturity magazine is defined by demographic characteristics, specifically age. AARP members must be at least 50 years old, and the magazine is sent to all members. This means that age is the primary defining characteristic of the target market for this publication.

Question 2

All of the following are the main dimensions used to segment Canadian consumer segments,except:

Accepted Answer

The main dimensions used to segment Canadian consumer segments include geographic (e.g. region, urban vs. rural), behavioural (e.g. usage rate, loyalty), and demographic (e.g. age, income, education). Ethnographic segmentation, which involves identifying groups based on cultural factors such as ethnicity or religion, is not a commonly used segmentation approach in Canada.

Question 3

When the Benihana Frozen Foods Corporation began to offer its Famous Restaurant Classics meals in single serving packages,it was relying on a _____ segmentation variable to define a market based on serving size.

Accepted Answer

Demographic segmentation divides the market based on factors such as age, gender, income, education, and family size. In this case, Benihana Frozen Foods Corporation is segmenting its market based on serving size, which is a demographic factor.

Question 4

The Province of Ontario Board of Tourism ran a series of ads showing traditional families enjoying various attractions in the state.Since the apparent target of these is traditional families,it appears the Board of Tourism has segmented the market using _____ variables.

Accepted Answer

Demographic variables are used to segment the market based on characteristics such as age, gender, family size, income, and education level. Traditional families are a specific demographic group that may have unique needs and preferences, which is why the Ontario Board of Tourism targeted them in their ads.

Question 5

A local sports store is planning on using only demographic variables to segment potential customers who will purchase from the store.This will dictate the diversity of products the store will carry.Which research report is most useful to this sports store?

Accepted Answer

The answer of A local sports store is planning on...

Question 6

When Mikki asked her father for his advice about marketing software for the disabled,he told her,"Reaching a segment requires a simple but effective marketing action.If no such action exists,don't segment." Mikki's father is expressing concern about the:

Accepted Answer

Mikki's father is expressing concern about the feasibility of marketing actions to reach the segment. He is suggesting that if there isn't a simple and effective way to market to the segment, it may not be worth it to try to reach that segment. This implies that he is concerned about the feasibility of marketing actions to reach the segment.

Question 7

Which of the following is NOT a criterion used in forming market segments?

Accepted Answer

The answer of Which of the following is NOT a...

Question 8

Understanding customer needs is the ____ step in market segmentation.

Accepted Answer

Understanding customer needs is the first step in market segmentation, as it forms the basis for identifying relevant segmentation variables and determining the appropriate target market.

Question 9

Which of the following statements demonstrates the formation of a segment based on family size?

Accepted Answer

The statement about GE building a downsized microwave oven to hang under kitchen cabinets suggests a product designed for smaller family sizes or limited kitchen space, indicating segmentation based on family size.

Question 10

At a Hallmark store you can find several different product lines of greeting cards,including Fresh Ink,Nature's Sketchbook,Shoebox,Maxine,Mahogany,and Tree of Life cards - all made by Hallmark for sale in its stores and intended to appeal to different target markets.The Mahogany line is designed to appeal to African-Americans.This is an example of _____ segmentation.

Accepted Answer

The Mahogany line of cards is designed to appeal specifically to African-Americans, which is a demographic segmentation strategy.

Question 11

Which of the following is NOT a criterion used in forming segments?

Accepted Answer

All of the other options (potential for increased profit and ROI, similarity of needs of potential buyers within a segment, feasibility of marketing action to reach a segment) are commonly used criteria in forming segments, but competitive position is not typically considered a key criterion. While competition is certainly a factor to be considered in marketing, it is not an essential component of segment formation.

Question 12

A different market segment usually requires a different marketing action that in turn means greater costs.If increased revenues do not offset extra costs,a marketer should _____ to reduce the number of marketing actions.

Accepted Answer

Combining segments can help reduce costs by streamlining marketing actions and targeting a broader audience with fewer resources.

Question 13

A local coffee shop places significant value in using consumer demographic variables in segmenting their local market.Using the latest Canada Census covering topics of: education,age,and income will be important to use in which marketing step?

Accepted Answer

Using demographic variables in market segmentation is usually done in the second step of the marketing process, which is market segmentation or dividing the market into smaller segments of consumers with similar needs and wants. This helps the coffee shop to better understand the characteristics of its target market and cater their marketing efforts to these specific groups.

Question 14

A marketing manager must be able to put a market segmentation plan into effect.This means being able to recognize the characteristics of potential buyers and _____ without encountering excessive costs.

Accepted Answer

The question asks for the ability to recognize the characteristics of potential buyers and assign them to a segment without incurring excessive costs. This is exactly what a market segmentation plan entails - categorizing potential buyers based on various factors without spending unnecessary resources. Options A, B, and C do not address the specific task mentioned in the question.

Question 15

A new car dealer decides to open up a dealership in a region that has higher than national average income.Which characteristic is the new car dealer using to segment their market?

Accepted Answer

The new car dealer is using demographic segmentation by targeting consumers in a region with higher than national average income. Demographic segmentation divides a market based on variables such as age, gender, income, education, occupation, and other statistical characteristics. In this case, income is the variable being used to segment the market.

Question 16

When a telemarketer calls to sell a consumer vinyl siding for his or her home,the first question the telemarketer asks is if the person answering the phone is a homeowner.Whether the prospect is a homeowner indicates the use of which type of consumer segmentation variable?

Accepted Answer

Demographic segmentation divides the market into different groups based on demographic variables such as age, gender, income, occupation, education, and marital status. Asking if the person answering the phone is a homeowner shows that the telemarketer is trying to segment consumers based on their homeownership status, which is a demographic variable.

Question 17

Ford Motor Company uses the slogan "No Boundaries" for its ad campaigns for Ford SUVs.It invites people who want ultimate people-carrying and gear-storing capabilities "to be outfitted with the most far-reaching sports utility vehicle on earth." If the SUV campaign were simply geared to families with young children,it would be using _____ segmentation,but because the campaign is trying to appeal to people who do not like the restrictions of a sedan,who want to be able to pack up and leave at a moment's notice,and who enjoy freedom and independence,it is relying on _____ segmentation.

Accepted Answer

The campaign is not just targeting families (demographic) but also appealing to lifestyle and personality traits (psychographic) such as freedom and independence.

Question 18

Universal Concerts is planning on bringing a series of concerts to Canada next year.In order for its concerts to be a success,it needs to know that Western Canadians like country music and that a country music event in Eastern Canada is much more likely to have empty seats.This consumer behaviour requires Universal Concerts to segment its Canadian market according to:

Accepted Answer

Based on the given information, the most relevant segmentation variables are geographic characteristics (Western Canada vs Eastern Canada) and psychographic characteristics (preference for country music). Therefore, choice A, which includes these variables, is the best answer. Demographic characteristics (such as age, gender, and income) may also play a role in market segmentation, but they are not mentioned as being key factors in this scenario. Lifestyle and usage rate are not mentioned at all, so choices C and D are not relevant.

Question 19

Which of the following statements demonstrates geographic segmentation?

Accepted Answer

Geographic segmentation refers to dividing the market based on geographical factors like location, climate, region, etc. In this case, KFC sells a spicier chicken in its restaurants that are farther away from the coastal areas. This strategy is used to cater to the taste preferences of customers in different regions. Therefore, option A demonstrates geographic segmentation.

Option B refers to product design or usage, option C is an example of demographic segmentation (targeting customers based on age or health concerns), and option D is an example of time-based segmentation (catering to different customer needs at different times of the day/week).

Question 20

At a Hallmark store you can find several different product lines of greeting cards,including Fresh Ink,Nature's Sketchbook,Shoebox,Maxine,Mahogany,and Tree of Life cards - all cards made by Hallmark for sale in its stores and intended to appeal to different target markets.The Shoebox line sells for $0.99,which is a significantly lower price than some of the other Hallmark brands.The Shoebox line is designed to appeal to people on limited budgets.This is an example of _____ segmentation.

Accepted Answer

This is an example of demographic segmentation because Hallmark has created a product line specifically targeting consumers with limited budgets. Demographic segmentation involves dividing the market based on characteristics such as age, income, education level, and other factors that can influence purchasing behavior.

Quiz 9: Market Segmentation, Targeting, and Positioning