Chapter 7 Multiple-choice questions

Why is market segmentation carried out?

To break down large markets into smaller markets.

Provides an opportunity to surpass competitors.

By grouping together customers with similar needs, it provides a commercially viable method of serving these customers.

Allows the achievement of greater market share.

The ________________method is one of the main approaches to segmenting markets by adopting the view that the market consists of customers that are essentially the same, so the task is to identify groups which share particular differences.

sample design

breakdown

build up

profile identification

To segment consumer good and service markets we use market information we have collected classified as segmentation bases. These bases include profile, behavioural, and psychological criteria. Examples of profile criteria include:

occupation, income, product usage, and lifestyle (psychographics).

media usage, transaction history, age, and geographics.

gender, age, occupation, life stage, and benefits sought criteria.

demographic, life stage, geographic, and geo-demographic criteria.

To be effective, the process of market segmentation must meet which of the following basic requirements?

The firm must avoid focusing on non-variables such as profitability and volume.

The market segment must have measurable purchasing power and size.

The company must expand beyond its marketing capabilities to capture growing markets.

The market segment must reflect the population's changing attitudes and lifestyles.

Which of the following are the three broad groups of consumer segmentation criteria?

Behavioural, psychological and profile criteria.

Behavioural-, gender- and industry- type variables.

Organizational size, demographic and behavioural variables.

Psychographic, sociological and price variables.

_____________ is based on the principle that we should provide customers with exactly what they want, based on the benefits they derive from using a particular proposition.

Lifestyle analysis

Benefits sought approach

Media usage

Perceptual mapping

Which of the following is not an example of a behavioural variable?

Product usage.

Media usage.

Purchase occasion.

Personality.

ACORN, a segmentation analysis technique, stands for which of the following?

A Corresponding Official Residential Notation.

A Classification of Reported Nationals.

A Classification of Residential Neighbourhoods.

A Countrywide Official Resources Navigation.

Which of the following is not one of the criteria of the behavioural segmentation base used for consumer markets?

Consumption.

Life stage.

Product usage.

Media usage.

Psychographic segmentation is based on:

the quantitative side of consumer demographic analysis.

the quantitative side of consumer geographic analysis.

individuals' residential patterns and life-cycle preferences.

grouping people according to their psychological characteristics, values, and lifestyles.

Segmentation by benefits sought is a type of product-related segmentation:

to determine the marketer's effectiveness in satisfying the consumer.

used to create a psychographic profile of the benefit of having the product as a common alternative.

as a post-consumption evaluation tool.

that focuses on the attributes that people seek in a product.

Which of the following are the three broad groups of organizational characteristics segmentation criteria?

Organizational size, industry type and gender.

Psychographics, purchaser, and behavioural criteria.

Organizational size, industry type, and geographical location.

None of the above.

Which of the following is not a useful base for segmenting organizational characteristics?

By turnover.

By geographical location.

By organizational size.

By industry type.

Ultimately, managerial discretion and judgment determine which markets are selected and targeted and which others are ignored. In order for market segmentation to be effective, all segments must be:

Distinct, Accessible, Measurable and Profitable.

Desperate, Accessible, Many, and Profitable.

Distinct, Accessible, Measurable and Popular.

Distinct, Artistic, Measurable and Profitable.

The purpose of evaluating the attractiveness of the different market segments identified in the second stage of the market segmentation process is to:

identify the specific members of each segment to be able to contact each of them directly.

determine the level of resources that must be committed to each segment.

evaluate the market potential within each segment.

design marketing strategy and tactics to reinforce the firm's image.

A key benefit of the STP process is:

more effective and efficient matching of company resources to targeted market segments promising the greatest ROMI.

enhancing a company's competitive position by providing direction and focus on marketing strategies.

examining and identifying growth opportunities in the market through the identification of new customers, growth segments, or new product uses.

all of the above.

_____________ is a natural outcome when combining demographic and geographic variables.

Geodemographics

Product differentiation.

ANSOFF matrix.

Brand management.

In order for market segmentation to be effective, all segments must be ________.

DAMP.

SWOT.

ACORN

STP.

_______________ are used in the positioning process to illustrate differing attributes of a selection of brands.

Product features.

SIC code.

Perceptual maps.

Organizational characteristics.

Which of the following is the investigation of the hedonic consumption of products?

Social interaction perspective.

Functional utilization perspective.

Experiential consumption.

Brand management perspective.

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