Question 1

Campbell Soup Co.found that its canned nacho cheese sauce,which could be heated and poured directly onto nacho chips,was too spicy for Americans in the East and not spicy enough for those in the West and Southwest.Today,Campbell's plants in Texas and California produce a spicier nacho cheese sauce than what is produced in the other plants.Campbell's is using __________ segmentation.
A) demographic
B) behavioral
C) economic
D) geographic
E) psychographic

Accepted Answer

Campbell's is using geographic segmentation by tailoring its product offerings to different regions of the United States based on taste preferences.

Question 2

More than half of all U.S.households are composed of only one or two persons,so Aunt Jemima offers one serving meals,such as its Ham & Egg Scramble and Oatmeal Pancakes.Aunt Jemima is using __________ as the basis to segment its market.
A) usage rates
B) usage patterns
C) demographic characteristics
D) behavior characteristics
E) psychographic characteristics

Accepted Answer

Aunt Jemima is using demographic characteristics, specifically household size, to segment its market.

Question 3

At a Hallmark store you can find several 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.
A) regional
B) lifestyle
C) demographic
D) geographic
E) psychographic

Accepted Answer

Demographic segmentation is based on characteristics such as age, gender, income, education, and ethnicity. In this case, Hallmark is creating a line of cards specifically targeted towards African Americans, indicating that their segmentation is based on ethnicity.

Question 4

Universal Concerts wants to bring a series of music concerts to Canada next year.In general,western Canadians prefer country music while eastern Canadians prefer rock.In fact,a country music event in eastern Canada is very likely to have lots of empty seats.To maximize revenue,Universal Concerts should segment its Canadian market according to
A) geographic characteristics.
B) demographic characteristics.
C) music format characteristics.
D) behavioral characteristics.
E) psychographic characteristics.

Accepted Answer

The best way to segment the Canadian market for concerts, based on the information provided, is through geographic characteristics. Western Canadians prefer country music while eastern Canadians prefer rock. Therefore, by segmenting the market based on geography, Universal Concerts can tailor the music format for the specific region and maximize revenue by avoiding areas where a certain music format may not be popular.

Question 5

Criteria for forming segments involve both similarities and differences.In terms of the needs of buyers,the similarities must be __________ a segment,and the differences must be __________ segments.
A) between; among
B) throughout; absent in
C) within; among
D) absent in; throughout
E) among; across

Accepted Answer

Similarities must be within a segment, as the purpose of segmentation is to group together buyers with similar needs and preferences. Differences must be among segments, as distinguishing factors between segments are what allows marketers to tailor their marketing strategies to better appeal to each group.

Question 6

Region and city size are both variables used to employ __________ segmentation.
A) geographic
B) behavioral
C) district
D) psychographic
E) demographic

Accepted Answer

Geographic segmentation is based on location and characteristics such as region and city size, making it the most appropriate choice. Behavioral segmentation is based on consumer behavior and psychographic segmentation is based on personality traits and values, neither of which are determined by regional factors. District segmentation is not a commonly used term in segmentation. Demographic segmentation is based on demographic characteristics such as age, gender, income, and education, which are related but not equivalent to geographic factors.

Question 7

All of the following are psychographic segmentation variables except which?
A) lifestyle
B) needs
C) birth era
D) PRIZM
E) personality

Accepted Answer

Birth era is a demographic segmentation variable based on age and generation, not psychographic variables like lifestyle, needs, personality, or PRIZM.

Question 8

Variables that are based on some objective physical (gender,ethnicity),measurable (age,income),or other classification attribute (occupation)of prospective customers are used in which segmentation basis?
A) personality
B) usage
C) needs
D) demographic
E) behavioral

Accepted Answer

Demographic segmentation is based on variables that are objective and measurable attributes of individuals, such as gender, ethnicity, age, and income. Occupation, mentioned in the question, is also a common demographic variable used in segmentation. Therefore, the best choice is D - demographic segmentation.

Question 9

The State of Alabama Board of Tourism ran a series of ads showing traditional families enjoying various attractions in the state.Since the apparent target of these ads is the traditional family,it appears that the State of Alabama Board of Tourism has segmented the market using __________ variables.
A) demographic
B) regional
C) socioeconomic
D) geographic
E) psychographic

Accepted Answer

The State of Alabama Board of Tourism is targeting a specific group of people based on their demographic characteristics, specifically traditional families. Demographic variables include aspects such as age, gender, income, education level, family size, and other characteristics that describe a group of people. In this case, the traditional family is the demographic variable being targeted.

Question 10

Which of the following statements regarding segmentation bases is most accurate?
A) The identification of demographic variables is more objective than the identification of psychographic variables, which is more subjective.
B) Marketers should use segmentation bases in this order to reduce potential costs: behavioral, demographic, psychographic, and geographic.
C) The identification of psychographic variables is more objective than the identification of demographic variables, which is more subjective.
D) Behavioral segmentation is based primarily on personality.
E) Psychographic segmentation is based primarily on product features.

Accepted Answer

Demographic variables, such as age and income, can be objectively measured, while psychographic variables, such as values and attitudes, are more subjective and depend on self-reported information.

Question 11

Criteria for forming segments involve both similarities and differences.Which of the following statements is most accurate?
A) Within a segment, the needs of potential buyers should be different; among segments, the needs of buyers should be similar.
B) Within a segment, the needs of potential buyers should be similar; among segments, the needs of buyers should be different.
C) The needs of buyers should be different, both between segments and within segments.
D) The needs of buyers should be the same, both between segments and within segments.
E) If there are any differences at all, you should forgo any segmentation.

Accepted Answer

The criteria for forming segments involve both similarities and differences. Within a segment, the needs of potential buyers should be similar as this allows for targeted marketing efforts to be more effective. Meanwhile, among segments, the needs of buyers should be different to differentiate the segments and to offer unique value propositions to each segment.

Question 12

Which of the following statements best illustrates geographic segmentation?
A) GE builds a smaller microwave oven to hang under kitchen cabinets.
B) Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners.
C) In China, KFC sells a spicier chicken the farther away its restaurants are from the coastal areas.
D) A fast-food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays.
E) A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area.

Accepted Answer

Geographic segmentation involves tailoring products or marketing strategies to specific geographic regions. In this example, KFC sells a spicier chicken in regions that are further away from the coast, suggesting that they are targeting consumers in those areas who may have different taste preferences.

Question 13

Which of the following statements demonstrate the formation of a segment based on household size?
A) Campbell's makes a spicier nacho cheese sauce for its distributors in Texas than it does in Maine.
B) GE built a smaller microwave oven to hang under kitchen cabinets.
C) Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners.
D) A fast-food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays.
E) A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area.

Accepted Answer

GE's smaller microwave oven is specifically designed for households with limited counter space, which indicates a segmentation based on household size. The other options do not relate to household size segmentation.

Question 14

Which of the following is a consumer market demographic segmentation variable?
A) personality
B) occupation
C) usage rate
D) needs
E) region

Accepted Answer

Demographic segmentation is based on some objective physical (gender,race),measurable (age,income),or other classification attribute (birth era,occupation)of prospective customers.

Question 15

Grouping potential buyers into meaningful segments involves meeting some specific criteria that answer the following question:
A) Is this product useful on a global scale?
B) Is it possible to reposition this product?
C) Is there too much competition for this product?
D) Is the market loyal to the product?
E) Would segmentation be worth doing and is it possible?

Accepted Answer

The question is specifically asking about the criteria for grouping potential buyers into meaningful segments. Therefore, the choice that addresses segmentation directly is the best one. The other choices are not necessarily relevant to segmentation or are too broad.

Question 16

About 3 percent of the population has some degree of allergic reaction,usually mild,to preservatives used in salad bars.Restaurants might consider people with these allergies as a separate segment.To implement this segmentation strategy,restaurants would have to prepare a regular salad bar and a special salad bar for the allergies segment.This multiple product,multiple market segment strategy would have the greatest difficulty meeting which of the following criteria used to form market segments?
A) different needs of buyers among different segments
B) similarity of needs of potential buyers within a segment
C) simplicity and cost-effectiveness of assigning potential buyers to segments
D) potential for increased profit and ROI
E) potential of a marketing action to reach a segment

Accepted Answer

The answer of About 3 percent of the population has...

Question 17

Segmentation based on some subjective mental or emotional attributes,aspirations,or needs of prospective customers is referred to as
A) behavioral segmentation.
B) affective segmentation.
C) socioeconomic segmentation.
D) psychographic segmentation.
E) sociocultural segmentation.

Accepted Answer

Psychographic segmentation is the process of dividing a market into segments based on factors such as personality traits, values, lifestyles, interests, and attitudes. This segmentation strategy enables marketers to better understand consumers' subjective mental or emotional attributes, aspirations, or needs, and create targeted marketing messages to appeal to these segments.

Question 18

Segmentation based on where prospective customers live or work is referred to as
A) zip code segmentation.
B) geographic segmentation.
C) trade area segmentation.
D) MSA segmentation.
E) NAICS code segmentation.

Accepted Answer

Geographic segmentation refers to dividing a market based on where prospective customers live or work, such as their country, region, city, or neighborhood. Zip code segmentation is a specific type of geographic segmentation that focuses on customers' postal codes. Trade area segmentation and MSA segmentation are also types of geographic segmentation that focus on customers' shopping or living areas and metropolitan statistical areas, respectively. NAICS code segmentation, on the other hand, is based on the industry or sector that prospective customers work in rather than their location.

Question 19

Procter & Gamble (P&G)decided to skip a generation of consumers when it began to market Old Spice deodorant.The target market consists of men aged 18 to 34 years old (Generation Y)who don't remember the Old Spice brand sold to their grandfathers (pre-baby boomer)many years ago.P&G is using which type of segmentation variable?
A) behavioral
B) demographic
C) lifestyle
D) geographic
E) psychographic

Accepted Answer

P&G is targeting a specific age group (18-34 years old) which is a demographic segmentation variable. They are not using any other variables such as behavior or psychographics to define their target market.

Question 20

Four general categories are used to segment consumer markets.Which of these is one of them?
A) supplier segmentation
B) demand segmentation
C) industry segmentation
D) behavioral segmentation
E) product segmentation

Accepted Answer

The four general categories used to segment consumer markets are geographic segmentation, demographic segmentation, psychographic segmentation, and behavioral segmentation. "Behavioral segmentation" is one of them, while the other options listed (supplier segmentation, demand segmentation, industry segmentation, and product segmentation) do not accurately describe the categories used to segment consumer markets.

Quiz 8: Market Segmentation, targeting, and Positioning

More than half of all U.S.households are composed of only one or two persons,so Aunt Jemima offers one serving meals,such as its Ham & Egg Scramble and Oatmeal Pancakes.Aunt Jemima is using __________ as the basis to segment its market.

Criteria for forming segments involve both similarities and differences.In terms of the needs of buyers,the similarities must be a segment,and the differences must be segments.

Region and city size are both variables used to employ __________ segmentation.

All of the following are psychographic segmentation variables except which?

Variables that are based on some objective physical (gender,ethnicity) ,measurable (age,income) ,or other classification attribute (occupation) of prospective customers are used in which segmentation basis?

The State of Alabama Board of Tourism ran a series of ads showing traditional families enjoying various attractions in the state.Since the apparent target of these ads is the traditional family,it appears that the State of Alabama Board of Tourism has segmented the market using __________ variables.

Which of the following statements regarding segmentation bases is most accurate?

Criteria for forming segments involve both similarities and differences.Which of the following statements is most accurate?

Which of the following statements best illustrates geographic segmentation?

Which of the following statements demonstrate the formation of a segment based on household size?

Which of the following is a consumer market demographic segmentation variable?

Grouping potential buyers into meaningful segments involves meeting some specific criteria that answer the following question:

Segmentation based on some subjective mental or emotional attributes,aspirations,or needs of prospective customers is referred to as

Segmentation based on where prospective customers live or work is referred to as

Four general categories are used to segment consumer markets.Which of these is one of them?