Florida International University

MAR 3023

Chapter 7-Market Segmentation and Targeting

Multiple Choice Questions

1)Which of the following represents the new way of developing market segment strategy and positioning?

a.) Many small segments

b.) Crude segmentation

c.) Intuition-driven segmentation d.) Few large segments

2. All of the following represent new ways of developing market segment strategy and positioning EXCEPT:

a.) Market segments based mainly on demographics

b.) Precise segmentation

c.) Analytically driven segmentation d.) Databases central to segmentation

3.                                           is the conceptual process of grouping together actual and potential customers in a market for the purpose of selecting targets for effort and for designing marketing programs.

a.) Market penetration b.) Market expansion

c.) Market segmentation

d.) Market extension

4. The end result of

a.) market penetration

is the identification of a number of market segments.

b.) market segmentation

c.) market expansion d.) market extension

5. A well-executed market segment strategy provides a firm with all of the following EXCEPT:

a.) secures better insight into strengths and weaknesses of the firm’s internal resources

b.) develops a clearer focus on market strategy

c.) identifies opportunities for customization to target segments d.) secures higher levels of customer satisfaction and loyalty

6. A proper market segmentation perspective assumes                                     of needs and wants for all product categories.

a.) homogeneity

b.) heterogeneity

c.) cultural bias

d.) factor similarities

7. Which of the following is NOT mentioned in the text as an improper approach to market segmentation?

a.) “That’s the way we’ve always done it.” b.) “That’s the way the data are available.”

c.) “That’s that way we can afford to do it.”

d.) “That’s the way we’re organized.”

8. Which of the following approaches to market segmentation ignores the impact of changes in the environment, customers, and competitors?

a.) “That’s the way we’ve always done it.”

b.) “That’s the way the data are available.” c.) “That’s that way we can afford to do it.” d.) “That’s the way we’re organized.”

9. Which of the following best describes the approach to market segmentation that assumes that independent data-gatherers had the firm’s market segmentation problem as their prime goal when devising data collection instruments?

a.) “That’s the way we’ve always done it.”

b.) “That’s the way the data are available.”

c.) “That’s that way we can afford to do it.” d.) “That’s the way we’re organized.”

10. When the market segmentation methods of                                     is used, it commonly involves government or trade association data used by several competitors in the same industry.

a.) “That’s the way we’ve always done it”

b.) “That’s the way the data are available”

c.) “That’s that way we can afford to do it” d.) “That’s the way we’re organized”

11. The firm can approach the market segmentation process from two different directions:

                                 or                                 .

a.) customer needs first or candidate descriptor variables first

b.) competitor analysis first or customer needs first

c.) candidate descriptor variables first or competitor analysis first

d.) internal resources first or external resources first

12. All of the following are mentioned in the text as examples of candidate descriptor variables used to segment markets EXCEPT:

a.) Demographic variables b.) Behavioral variables

c.) Social/psychological variables

d.) Technological variables

13.     include country, region, county size, city or SMSA size, population density, and climate.

a.) Geographic variables

b.) Demographic variables c.) Behavioral variables

d.) Social/psychological variables

14. According to the text,                                          are physical descriptors of customers.

a.) geographic variables

b.) demographic variables

c.) behavioral variables

d.) social/psychological variables

15. For consumers, demographic variables include all of the following EXCEPT: a.) Age

b.)   Gender c.) Education

d.) Personality

16. Which of the following is NOT an example of a consumer’s demographic variable? a.) Age

b.) Language

c.) Lifestyle characteristics

d.) Nationality

17. All of the following are examples of demographic variables for organizations EXCEPT: a.) Firm size

b.) Profitability

c.) Power structure

d.) Legal entity

18.     include use occasion, decision-making practices, user situation, composition of the decision-making unit, and type of purchase decision.

a.) Geographic variables

b.) Demographic variables

c.) Behavioral variables

d.) Social/psychological variables

19. Which of the following is NOT an example of a social/psychological variable? a.) Personality

b.) Attitudes

c.) Social class

d.) Life stage

20. All of the following are examples of social/psychological variables EXCEPT: a.) Activities

b.) Interests c.) Opinions

d.) Family life cycle stage

21. The many methodological approaches to forming market segments fall into two main categories, which are    and                                                .

a.) qualitative and quantitative

b.) qualitative and judgmental

c.) quantitative and data-crunching d.) intuitive and qualitative

22. PRIZM is a                                           segmentation system fo, developed by Claritas Inc., a leading marketing services firm.

a.) geographic

b.) lifestyle

c.) demographic d.) technological

23. According to PRIZM’s clusters with the Rustic Living social group,                                     are described as middle –aged, blue-collar couples and families with rural lifestyles.

a.) Crossroad Villagers

b.) Golden Ponds c.) Old Milltowns

d.) Young and Rustic

24. Which of the following groups based on PRIZM’s clusers with Rustic Living social group, is described as young, economically challenged, modestly educated, sprawling families with blue- collar jobs in isolated towns?.

a.) Crossroad Villagers b.) Golden Ponds

c.) Old Milltowns

d.) Bedrock America

25. Which of the following is NOT mentioned in the text as a criterion of good market segments? a.) Measurable

b.) Differentiated

c.) Wealthy

d.) Identifiable

26. Which of the following market segment criteria refers to whether customers will stay in the segment for a reasonable period of time?

a.) Stable

b.) Measurable c.) Accessible d.) Actionable

27. Which of the following market segment criteria refers to being able to evaluate size and growth? a.) Stable

b.) Measurable

c.) Accessible d.) Actionable

28. Which of the following market segment criteria refers to whether the firm can reach the segment via communications and distribution channels?

a.) Stable

b.) Measurable

c.) Accessible

d.) Actionable

29. Firms experienced in market segmentation typically opt for                                   segments. a.) one to three

b.) three to five

c.) five to eight

d.) eight to eleven

30. Firms that address B2B markets, or sell consumer good through large retail chains, often focus their efforts on individual customers, known as                                                          .

a.) mass customization b.) modularity

c.) mass standardization

d.) segments-of-one

31. When a firm has many customers and has placed purchase transactions in a data warehouse, it can then use    techniques to identify groups based on purchasing patterns and tailor offers to individual customers based on those patterns.

a.) linear extrapolation b.) multiple regression c.) perceptual mapping

d.) data mining