Question 1

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

Accepted Answer

Population density and city size are geographic variables because they are based on the physical location and spatial distribution of people. Demographic variables relate to characteristics of the population such as age, income, and education. Psychographic variables relate to personality traits, values, attitudes, and interests. Environmental variables relate to factors such as climate, natural resources, and pollution. Geodemographic variables combine geographic and demographic information to create a more targeted segmentation approach. However, only geographic variables are mentioned in the question.

Question 2

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 refer to segmentation based on characteristics such as age, gender, income, education, etc. In this case, Gillette has segmented the market based on gender and designed a product specifically for women.

Question 3

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 is a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets. It involves identifying specific segments of the market and tailoring the marketing mix to meet the unique needs and preferences of these segments. This approach allows companies to create targeted marketing campaigns that can be more effective in reaching and converting these small groups of consumers.

Question 4

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...

Question 5

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

The segmentation variable that refers to the number of potential customers within a certain area of land is called market density. This variable helps marketers determine the size and location of their target market, as areas with high market density may require different strategies than areas with low market density. Additionally, population and MSA/PMSA (metropolitan statistical area/primary metropolitan statistical area) are related to market density but do not specifically refer to the number of potential customers within a certain area of land. Micromarketing is a broader term that encompasses a variety of strategies and techniques for targeting specific groups of customers, including segmentation by market density.

Question 6

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 its market segment based on age. Lego sets are primarily marketed towards children between the ages of 3-12 years old.

Question 7

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

When a company segments its market on the basis of the customers' reasons for purchasing a particular product, they are using motive segmentation. This involves identifying and understanding the underlying motives or reasons that drive customers to make their purchasing decisions. By doing so, companies can tailor their marketing messages and strategies to effectively appeal to these different motives and attract a larger customer base.

Question 8

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 people's activities, interests, and opinions is their lifestyle. Lifestyle encompasses a wide range of behaviors, values, and attitudes that reflect how people spend their time, what they enjoy doing, and what they think is important in life. It is a useful segmentation tool for marketers who want to better understand and target their customers based on shared interests and values.

Question 9

Subaru 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 income
E)Geographic location and gender

Accepted Answer

Geographic location is important because Subaru's all-wheel drive vehicles are especially popular in areas with harsh weather conditions. Family life cycle is also important because the van is designed as a family vehicle with seven-passenger capacity.

Question 10

Systems such as PRIZM and Acorn 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

The systems PRIZM and Acorn use geodemographic segmentation, which combines geographic and demographic data to identify common characteristics and lifestyles of consumers in specific neighborhoods. This information can aid companies in targeting their marketing efforts to specific segments based on their shared traits and behaviors.

Question 11

Justin Franklin's company is interested in locating areas where the average income is high, the average age range is 25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His company would most likely find possible markets through
A)U.S. Census Bureau information.
B)geographic segmentation variables.
C)geodemographic segmentation.
D)climate information.
E)psychographic segmentation.

Accepted Answer

Geodemographic segmentation combines geographic and demographic information to identify target markets based on their shared behaviors and attitudes. This approach would be the best fit for Justin Franklin's company in locating areas where the average income is high, the average age range is 25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. U.S. Census Bureau information and climate information may not provide the specific details about lifestyles and leisure activities that are needed for the company's research, while geographic segmentation variables may not take into account the demographic factors that would be relevant. Psychographic segmentation may be useful in identifying consumers' attitudes and values related to adventure and risk-taking, but it may not provide the geographic and demographic data needed to identify specific target markets.

Question 12

TimeWarner Cable uses a segmentation strategy for its cable TV packages based on market characteristics such as age, gender, or income. Which of the following segmentation variables is TimeWarner using?
A)Demographic
B)Geographic
C)Psychographic
D)Product-related
E)Education

Accepted Answer

TimeWarner Cable is segmenting based on demographic characteristics such as age, gender, or income. This falls under the category of demographic segmentation.

Question 13

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 stage of life the customer is in, such as being single, married with no children, married with young children, etc. This type of segmentation takes into account demographic variables, such as marital status and the presence and age of children.

Question 14

Seventh Generation is a company producing products that limit the amount of negative impact on the environment. Their 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. Their 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

Seventh Generation will be using psychographic segmentation variables, which include personality characteristics, motives, and lifestyles, to develop their marketing strategy for their new line of clothing. This type of segmentation focuses on understanding the attitudes, interests, and beliefs of their target audience, which is likely to be environmentally conscious individuals who prioritize sustainability and ethical production in their lifestyle choices. Age, sex, and socioeconomic characteristics (B) are demographic variables, while social class variables (C) and family life cycle, social class, and religion (E) are also demographic and/or geographic segmentation variables that are not as relevant to Seventh Generation's product line.

Question 15

A widely used system for classifying individuals on the basis of lifestyle is
A)CMSA.
B)PRIZM.
C)CMSA
D)LIFO.
E)Prospect Zone.

Accepted Answer

PRIZM (Potential Rating Index by ZIP Markets) is a widely used system for classifying individuals on the basis of lifestyle. It categorizes people into 66 different segments based on factors such as demographics, behavior, and consumer preferences. This system is used by marketers to target specific groups with tailored advertising and promotional campaigns. The other options listed (CMSA, LIFO, and Prospect Zone) are not commonly used lifestyle classification systems.

Question 16

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 is based on the different stages in a family's life, which are typically determined by the marital status of the adults and the age of their children. These stages include newlyweds without children, families with young children, families with teenagers, and empty nesters. Income, geographic location, occupation, and buying power may impact a family's lifestyle and spending habits, but they are not used to define the family life cycle.

Question 17

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 generally use a positively viewed characteristic they assume much of their target market has or would like to have. This is because marketers want their target audience to identify positively with their product or service, and using a personality characteristic that is appealing to the market can help achieve this goal.

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 characteristics such as age, income, and family status, which are all demographic variables.

Question 19

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 and are based on consumer attitudes, interests, and opinions. This makes it challenging to accurately collect and analyze data for market segmentation.

Question 20

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.

Quiz 6: Target Markets Segmentation and Evaluation

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

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.

Micromarketing is

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

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?

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

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

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

Subaru 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?

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

Justin Franklin's company is interested in locating areas where the average income is high, the average age range is 25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His company would most likely find possible markets through

TimeWarner Cable uses a segmentation strategy for its cable TV packages based on market characteristics such as age, gender, or income. Which of the following segmentation variables is TimeWarner using?

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

A widely used system for classifying individuals on the basis of lifestyle is

Family life cycle is most typically based on

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

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.

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

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.