Question 1

HealthPro cereal ads show the cereal being used as a topping on yogurt,as a snack when topped with honey,and served hot as an alternative to oatmeal.In this case,HealthPro is using a positioning strategy based on:

Accepted Answer

HealthPro is positioning their cereal based on its use/application, showing how it can be used as a topping for yogurt, a snack with honey, and a hot alternative to oatmeal. This suggests that the brand is targeting consumers who are looking for versatile, convenient, and healthy breakfast options.

Question 2

Which of the following describes the function of geodemographic segmentation?

Accepted Answer

Geodemographic segmentation focuses on identifying specific households in a market by analyzing local neighborhood areas and creating classifications of neighborhoods where people live and shop. This approach allows marketers to understand consumer behavior and tailor their marketing efforts based on the characteristics of the neighborhoods where their target audience lives.

Question 3

Indie Frost is a website that sells snowboarding gear.A common strategy the website employs is to offer a high discount on one of its products for a short period of time.The website has found this strategy to have a high success rate since consumers tend to buy the product impulsively due to its low cost.The nature of the website and its marketing strategy suggests that Indie Frost targets the _____ of the VALS™ framework.

Accepted Answer

Indie Frost's marketing strategy of offering high discounts on snowboarding gear for a short period of time suggests that it targets the Experiencers segment of the VALS™ framework. Experiencers are young, enthusiastic, and impulsive consumers who are open to new experiences and seek excitement and variety. They are likely to be attracted to the thrill of snowboarding and may be more likely to make impulsive purchases based on discounts and deals.

Question 4

What is the function of the Nielsen PRIZM?

Accepted Answer

Nielsen PRIZM is a geodemographic segmentation tool that classifies U.S. neighborhoods into distinct groups based on demographic and lifestyle characteristics.

Question 5

In the context of geodemographic segmentation,which of the following is true of the Nielsen PRIZM system?

Accepted Answer

The Nielsen PRIZM system includes maps of different areas that rank neighborhoods on their potential to purchase specific products and services, thus making it a useful tool for geodemographic segmentation. Option A pertains to an industry analysis, option B to product positioning, and option C to perceptual mapping, none of which are directly related to geodemographic segmentation.

Question 6

Mike wanted to build a bowling alley in Canada.Market research shows that Western Canadians enjoy bowling and similar pastimes significantly more than those in Eastern Canada.By locating his alley in the Western province of Alberta,Mike used a _____ segmentation strategy.

Accepted Answer

Geodemographic segmentation is a strategy that divides markets into smaller homogeneous groups based on geographic location, demographics, and lifestyle characteristics. In this case, Mike used geodemographic segmentation by targeting Western Canada, where people have a strong inclination towards bowling and similar pastimes.

Question 7

Identify the step in the market segmentation process that involves focusing on a product's superiority to competitive products based on one or more attributes.

Accepted Answer

Developing the product positioning plan involves focusing on a product's superiority to competitive products based on one or more attributes. This step involves identifying the unique selling proposition (USP) of the product and creating a positioning statement that communicates this USP to the target market.

Question 8

In the VALS™ framework,_____ can be viewed as the opposite of Innovators in terms of resources and innovations.

Accepted Answer

Survivors, in the VALS™ framework, are defined as having low resources and as being the least involved in society. They are not likely to be innovators, but rather tend to conserve what resources they have and focus on meeting their basic needs. This is the opposite of Innovators, who are characterized by high resources and a tendency towards being early adopters of new ideas and products. Therefore, D) Survivors is the correct answer.

Question 9

A store that sells art supplies has established the Makers segment of the VALS™ framework to be the most ideal segment to target.According to the market segmentation process,which of the following steps must the store undertake next?

Accepted Answer

Positioning the product favorably in the minds of its customers is the next step after identifying the target segment, which in this case is the Makers segment of the VALS™ framework.

Question 10

An ad for Concordia kitchen cabinets states "For an exceptional look in cabinetry that you won't find anywhere else,buy Concordia cabinets." This is an example of positioning:

Accepted Answer

The ad positions Concordia kitchen cabinets as having an exceptional look that cannot be found anywhere else, which suggests superiority to competitive products.

Question 11

Storm in Bowl is a noodle manufacturer in Texas.It advertises the ingredients used for its product to convince customers that it is safe for consumption.The company has also slashed its prices to ensure affordability for low-income consumers.According to the VALS™ framework,Storm in Bowl is most likely targeting _____.

Accepted Answer

Storm in Bowl's emphasis on ingredient safety and affordable pricing suggests a focus on practicality and cost-saving, which aligns with the Survivor VALS™ segment.

Question 12

According to the VALS™ framework,consumers who are classified as _____ are predictable,and they choose familiar products and established brands.

Accepted Answer

Believers are characterized as being conservative, relying on family and community for guidance, and looking for familiar products and established brands. They are not interested in change or taking risks, and therefore their choices are predictable. Strivers and Experiencers are more open to trying new things and taking risks, while Makers are focused on creating and building things rather than sticking to familiar products and brands.

Question 13

The Nielsen PRIZM system includes maps of different areas that:

Accepted Answer

The Nielsen PRIZM system is a tool used for market segmentation and helps rank neighborhoods based on their potential to purchase specific products. The maps provided by the system aid in identifying target markets and developing marketing strategies.

Question 14

Which of the following observations about geodemographic segmentation is true?

Accepted Answer

Geodemographic segmentation creates classifications of actual, addressable, mappable neighborhoods where consumers live and shop. It is based on the assumption that consumers in a particular neighborhood share similar characteristics and consumption patterns. It is used to target marketing efforts to specific neighborhoods or regions. It does not identify specific individuals or households within a market, nor does it necessarily identify consumer needs and wants in new markets or for new products.

Question 15

The Nielsen PRIZM system is based on the assumptions that:

Accepted Answer

The Nielsen PRIZM system is based on the assumption that consumers in particular neighborhoods are similar in many respects, and the best prospects are those who actually use a product or other consumers like them. This is the basis of geodemographic segmentation, which is the main approach used by the PRIZM system. The other options are not related to the assumptions underlying the PRIZM system.

Question 16

Danko Inc.has manufactured a new line of wristwatches that can withstand extreme conditions such as below-freezing temperatures.The watches are also waterproof and heat resistant.The company is marketing these watches specifically to adventurers and extreme sports enthusiasts,such as mountain climbers and scuba divers.Danko has positioned its line of wristwatches:

Accepted Answer

The company is targeting adventurers and extreme sports enthusiasts as their specific target market, indicating that they have positioned their product in terms of particular types of product users.

Question 17

According to the market segmentation process model,which of the following steps is a company likely to undertake after it has determined the basic segments of the market that could potentially be satisfied with its product?

Accepted Answer

Developing the product positioning plan is the next step in the market segmentation process model after determining the basic segments of the market that could potentially be satisfied with the product.

Question 18

The Hector & Gable Corporation conducted a research study and found that vacuum brick packs of coffee sell much better in the urban uptown than coffee that is canned.As a result,Hector & Gable repackaged their Danver brand of coffee for the urban uptown and developed an advertising campaign to market it to the region.Sales of Danver coffee in this region were found to have increased by 32 percent.In this example,Hector & Gable used _____ segmentation to market its coffee.

Accepted Answer

Hector & Gable used geodemographic segmentation to market its coffee by analyzing the characteristics and preferences of the urban uptown region and tailoring their product and advertising campaign to meet the specific needs of that demographic.

Question 19

_____ segmentation refers to an approach that identifies specific households in a market by focusing on local neighborhood areas to create classifications of actual,addressable,mappable neighborhoods where consumers live and shop.

Accepted Answer

Geodemographic segmentation uses geographical information, such as ZIP codes or census data, to group people into neighborhoods with similar demographics, lifestyles, and preferences. This allows companies to target their marketing efforts to specific areas with a higher concentration of potential customers.

Question 20

Johnson & Coleman has created a new line of premium quality writing desks.The company marketed the product by highlighting its durability and functionality.According to the VALS™ framework,to which of the following psychographic groups would the writing desk appeal the most?

Accepted Answer

According to the VALS™ framework, Thinkers are motivated by ideals and knowledge. They are practical and seek durability and functionality in products. Therefore, the premium quality writing desk marketed by Johnson & Coleman would most likely appeal to the Thinkers psychographic group.

Quiz 5: Market Segmentation