Baines, Fill, & Rosengren: Marketing 4e Chapter 6: Multiple choice questions Instructions Answer the following questions and then press 'Submit' to get your score. Question 1 Why is market segmentation carried out? a) To break down large markets into smaller markets. b) Provides an opportunity to surpass competitors. c) By grouping together customers with similar needs, it provides a commercially viable method of serving these customers. d) Allows the achievement of greater market share. Question 2 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. a) sample design b) breakdown c) build up d) profile identification Question 3 An example of a segmented market would be: a) Phillips marketing its product to all residents of the European Union with one marketing mix based on the concept 'Sense and Sensibility'. b) high-income and low-income consumers being treated the same at Marks and Spencer (M&S). c) a garden nursery seeing residents of urban areas and rural areas as one market needing trees. d) Honda separating its potential customers into economy car buyers and luxury car buyers. Question 4 To be effective, the process of market segmentation must meet which of the following basic requirements? a) The firm must avoid focusing on non-variables such as profitability and volume. b) The market segment must have measurable purchasing power and size. c) The company must expand beyond its marketing capabilities to capture growing markets. d) The market segment must reflect the population's changing attitudes and lifestyles. Question 5 Which of the following are the three broad groups of consumer segmentation criteria? a) Behavioural, psychological and profile criteria. b) Behavioural-, gender- and industry- type variables. c) Organizational size, demographic and behavioural variables. d) Psychographic, sociological and price variables. Question 6 A commonly used basis for segmenting consumer markets is: a) organizational size. b) demographics. c) product type. d) price. Question 7 Which of the following is not an example of a behavioural variable? a) Product usage. b) Media usage. c) Purchase occasion. d) Personality. Question 8 ACORN, a segmentation analysis technique, stands for which of the following? a) A Corresponding Official Residential Notation. b) A Classification of Reported Nationals. c) A Classification of Residential Neighbourhoods. d) A Countrywide Official Resources Navigation. Question 9 The family life cycle: a) is a way to apply psychographic segmentation. b) refers to the process of family formation and dissolution. c) provides insights into the relationships among age, occupation, income, and housing. d) is composed of the 11 stages of personal growth from infancy to retirement. Question 10 Psychographic segmentation is based on: a) the quantitative side of consumer demographic analysis. b) the quantitative side of consumer geographic analysis. c) individuals' residential patterns and life-cycle preferences. d) grouping people according to their psychological characteristics, values, and lifestyles. Question 11 Segmentation by benefits sought is a type of product-related segmentation: a) to determine the marketer's effectiveness in satisfying the consumer. b) used to create a psychographic profile of the benefit of having the product as a common alternative. c) as a post-consumption evaluation tool. d) that focuses on the attributes that people seek in a product. Question 12 Which of the following are the three broad groups of organizational characteristics segmentation criteria? a) Organizational size, industry type and gender. b) Psychographics, purchaser, and behavioural criteria. c) Organizational size, industry type, and geographical location. d) None of the above. Question 13 Which of the following is not a useful base for segmenting organizational characteristics? a) By turnover. b) By geographical location. c) By organizational size. d) By industry type. Question 14 Before beginning the market segmentation process, a firm should: a) identify bases for segmenting markets. b) forecast total market potential. c) forecast market share. d) select target market segments. Question 15 The purpose of evaluating the attractiveness of the differing market segments identified in the second stage of the market segmentation process is to: a) identify the specific members of each segment to be able to contact each of them directly. b) determine the level of resources that must be committed to each segment. c) evaluate the market potential within each segment. d) design marketing strategy and tactics to reinforce the firm's image. Question 16 A key benefit of the STP process is: a) more effective and efficient matching of company resources to targeted market segments promising the greatest ROMI. b) enhancing a company's competitive position by providing direction and focus for marketing strategies. c) examining and identifying growth opportunities in the market through the identification of new customers, growth segments, or new product uses. d) all of the above. Question 17 _____________ is a natural outcome when combining demographic and geographic variables. a) Geodemographics b) Product differentiation. c) ANSOFF matrix. d) Brand management. Question 18 Organizational characteristics, such as organizational size and location, sometimes referred to as___________. a) DMU. b) firmographics. c) ACORN d) product usage . Question 19 _______________ are used in the positioning process to illustrate differing attributes of a selection of brands. a) Product features. b) SIC code. c) Perceptual maps. d) Organizational characteristics. Question 20 Which of the following is the investigation of the hedonic consumption of products? a) Social interaction perspective. b) Functional utilization perspective. c) Experiential consumption. d) Brand management perspective.