Unit 6: Segmentation Decisions - Practice Quiz

DEMKT503 — Marketing Management 60 Questions
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1 What is market segmentation?

Market segmentation Easy
A. Selling one product to everyone
B. Dividing a market into smaller groups
C. Choosing a company logo
D. Increasing the price of a product

2 Why do marketers use market segmentation?

Market segmentation Easy
A. To eliminate all competitors
B. To serve customer groups more effectively
C. To produce identical products only
D. To avoid studying customer needs

3 A group of consumers with similar needs and responses to marketing activities is called a:

Market segmentation Easy
A. Market segment
B. Distribution channel
C. Product line
D. Sales territory

4 Which activity is most closely related to market segmentation?

Market segmentation Easy
A. Printing invoices for customers
B. Calculating employee salaries
C. Transporting products to stores
D. Grouping customers by shared needs

5 Which characteristic makes a market segment measurable?

Characteristics of a segment Easy
A. Its competitors are completely absent
B. Its products are never changed
C. Its size can be estimated
D. Its members are always identical

6 A segment is accessible when a company can:

Characteristics of a segment Easy
A. Reach and serve its members
B. Prevent other companies from entering
C. Guarantee that members never switch brands
D. Sell every product at the same price

7 A segment is substantial when it is:

Characteristics of a segment Easy
A. Large enough to be profitable
B. Difficult to identify and measure
C. Made up of unrelated customers
D. Located in only one small shop

8 Which characteristic means that a segment can be acted upon with a marketing program?

Characteristics of a segment Easy
A. Seasonal
B. Geographical
C. Actionable
D. Temporary

9 A segment should be internally similar, meaning its members should have:

Characteristics of a segment Easy
A. Identical personal incomes
B. Different responses to every product
C. The same brand loyalty level
D. Similar needs or characteristics

10 Which of the following is a demographic basis for segmentation?

Bases for segmenting a consumer market Easy
A. Brand loyalty
B. Usage rate
C. Lifestyle
D. Age

11 Geographic segmentation divides a market according to:

Bases for segmenting a consumer market Easy
A. Location
B. Brand preference
C. Purchase frequency
D. Personality

12 Which variable is commonly used in psychographic segmentation?

Bases for segmenting a consumer market Easy
A. Gender
B. Lifestyle
C. Purchase quantity
D. Postal code

13 Behavioral segmentation focuses mainly on consumers':

Bases for segmenting a consumer market Easy
A. Family size
B. Physical location
C. Age group
D. Buying behavior

14 Income is an example of which consumer market segmentation basis?

Bases for segmenting a consumer market Easy
A. Demographic
B. Geographic
C. Behavioral
D. Psychographic

15 Mass marketing involves:

Levels of market segmentation Easy
A. Serving only a very small niche
B. A separate product for every customer
C. Marketing only to former customers
D. One marketing program for the whole market

16 Segment marketing targets:

Levels of market segmentation Easy
A. A group with similar needs
B. Only one individual customer
C. Only the company's employees
D. Every possible market worldwide

17 Niche marketing focuses on:

Levels of market segmentation Easy
A. The entire population
B. All product categories
C. A smaller specialized group
D. A company's internal departments

18 Micromarketing means tailoring marketing efforts to:

Levels of market segmentation Easy
A. All consumers in the same way
B. Products with no target market
C. Specific individuals or local areas
D. Only international corporations

19 Which factor is important when evaluating the attractiveness of a market segment?

Factors influencing the selection of market segments Easy
A. Company parking capacity
B. Office furniture style
C. Segment size and growth
D. Employee dress code

20 A company should consider its resources when selecting a market segment because resources determine whether it can:

Factors influencing the selection of market segments Easy
A. Guarantee permanent demand
B. Make customer needs identical
C. Remove all market competition
D. Serve the segment effectively

21 A sportswear company identifies customers who regularly participate in marathon running and designs a product range specifically for them. Which marketing activity is illustrated?

Market segmentation Medium
A. Mass marketing
B. Market segmentation
C. Market repositioning
D. Product diversification

22 A restaurant observes that office employees prefer quick meals at lunchtime, while families prefer larger meals during evenings and weekends. What should the restaurant do first to use this information effectively?

Market segmentation Medium
A. Offer one menu at one price
B. Remove less popular menu items
C. Divide customers by usage occasion
D. Increase advertising to everyone

23 A firm finds that customers in several countries have similar preferences for environmentally friendly packaging. Which segmentation approach is most appropriate?

Market segmentation Medium
A. Target only the largest country
B. Segment customers by sales territory
C. Use a cross-market segment
D. Ignore national differences

24 A company identifies a group of consumers interested in premium fitness equipment, but the group is too small to generate sufficient sales. Which segment characteristic is weakest?

Characteristics of a segment Medium
A. Substantiality
B. Measurability
C. Differentiability
D. Accessibility

25 A retailer creates a segment called "people who like good products," but cannot estimate its size or purchasing power. Which requirement for effective segmentation is missing?

Characteristics of a segment Medium
A. Responsiveness
B. Measurability
C. Stability
D. Actionability

26 Two identified customer groups respond in almost the same way to identical advertising and pricing. Why may treating them as separate segments be inappropriate?

Characteristics of a segment Medium
A. They are not substantial
B. They lack differentiability
C. They lack geographic identity
D. They are not accessible

27 A company can clearly identify a segment and estimate its size, but it lacks the sales staff and distribution partners needed to reach the segment. Which characteristic is absent?

Characteristics of a segment Medium
A. Homogeneity
B. Measurability
C. Substantiality
D. Accessibility

28 A business discovers a profitable customer group but has no suitable product, budget, or marketing program for serving it. Which characteristic is most directly affected?

Characteristics of a segment Medium
A. Actionability
B. Measurability
C. Internal similarity
D. Geographic stability

29 A packaged-food company develops separate products for children, young adults, and older consumers. Which segmentation base is being used?

Bases for segmenting a consumer market Medium
A. Psychographic
B. Behavioral
C. Geographic
D. Demographic

30 A clothing brand offers different styles for customers who prefer minimalist, traditional, or adventurous fashion. Which base is most relevant?

Bases for segmenting a consumer market Medium
A. Geographic
B. Psychographic
C. Demographic
D. Behavioral

31 A mobile-service provider offers special plans to customers who use unusually large amounts of mobile data. Which behavioral variable is being applied?

Bases for segmenting a consumer market Medium
A. Purchase occasion
B. Usage rate
C. Brand loyalty
D. Benefit sought

32 A toothpaste company promotes one product for cavity protection and another for whitening. Which segmentation base is primarily being used?

Bases for segmenting a consumer market Medium
A. Benefits sought
B. Income level
C. Family life cycle
D. Residential location

33 A supermarket sends different offers to customers based on their previous purchases and frequency of visits. Which combination of bases is being used?

Bases for segmenting a consumer market Medium
A. Behavioral and database-based
B. Geographic and demographic
C. Psychographic and geographic
D. Demographic and cultural

34 A company sells the same basic bottled water to the entire market with one general marketing program. Which level of market segmentation does this represent?

Levels of market segmentation Medium
A. Segment marketing
B. Mass marketing
C. Niche marketing
D. Individual marketing

35 A furniture company creates separate living-room collections for students, young families, and retired couples. Which level is illustrated?

Levels of market segmentation Medium
A. Individual marketing
B. Segment marketing
C. Mass marketing
D. Local marketing

36 A software provider designs a specialized accounting system for dental clinics because their requirements differ from those of other medical practices. This is an example of:

Levels of market segmentation Medium
A. Undifferentiated marketing
B. Seasonal marketing
C. Niche marketing
D. Mass marketing

37 A grocery chain changes its product assortment and promotions for individual neighborhoods based on local income patterns and cultural preferences. Which level is being used?

Levels of market segmentation Medium
A. Niche marketing
B. Individual marketing
C. Mass marketing
D. Local marketing

38 A custom-shirt company allows each customer to select fabric, measurements, color, and design through an online platform. Which level of segmentation is most evident?

Levels of market segmentation Medium
A. Segment marketing
B. Individual marketing
C. Niche marketing
D. Local marketing

39 A firm has limited resources and chooses one small group of customers with highly specialized needs rather than serving several broad groups. Which factor most influenced this decision?

Factors influencing the selection of market segments Medium
A. Competitor location
B. Market uniformity
C. Product maturity
D. Company resources

40 A company selling a highly standardized industrial chemical chooses an undifferentiated strategy because customers have similar requirements. Which factor supports this choice?

Factors influencing the selection of market segments Medium
A. Complex distribution
B. High brand loyalty
C. Rapid product change
D. Market homogeneity

41 A national bank finds that two customer groups have identical age, income, and location profiles, but one group values mobile convenience while the other prioritizes branch-based advice. Which conclusion is most defensible?

Market segmentation Hard
A. The groups must be combined because their profiles match
B. Geographic segmentation should replace behavioral analysis
C. Demographic variables are sufficient for targeting
D. The groups may represent distinct psychographic segments

42 A firm divides the market by occupation but discovers that customers within each occupational group differ sharply in desired benefits, usage intensity, and price sensitivity. What is the most appropriate strategic response?

Market segmentation Hard
A. Use occupation as the sole targeting variable
B. Target only the largest occupational group
C. Abandon segmentation and use mass marketing
D. Combine occupation with behavioral and benefit variables

43 A premium appliance brand identifies a small segment with strong willingness to pay, but competitors can imitate the product within six months. Which segmentation concern is most significant?

Market segmentation Hard
A. The segment is too homogeneous internally
B. The segment may not be defensible over time
C. The segment is not measurable
D. The segment lacks sufficient accessibility

44 A streaming service segments users by current viewing history. The model performs well for established subscribers but poorly for new users with limited data. Which problem is illustrated?

Market segmentation Hard
A. The cold-start limitation
B. Over-segmentation
C. Excessive segment accessibility
D. Insufficient geographic coverage

45 A retailer creates separate segments for customers who buy once annually and customers who buy twice annually, although both groups respond identically to promotions and generate similar margins. What is the strongest criticism?

Market segmentation Hard
A. The segmentation creates artificial distinctions
B. The retailer used a consumer-market base
C. The segments are too accessible
D. The segments are not measurable

46 A proposed segment contains many customers, but the company cannot estimate its size because membership changes whenever the survey wording changes. Which characteristic is weakest?

Characteristics of a segment Hard
A. Measurability
B. Substantiality
C. Accessibility
D. Differentiability

47 A segment is clearly identifiable and profitable, but the firm lacks suitable distribution partners and cannot reach its members through practical communication channels. Which evaluation criterion fails most directly?

Characteristics of a segment Hard
A. Substantiality
B. Actionability
C. Accessibility
D. Stability

48 A segment is large and easy to reach, but customers show no meaningful difference in response to the firm's product, price, or promotional policies compared with the rest of the market. Which characteristic is absent?

Characteristics of a segment Hard
A. Accessibility
B. Differentiability
C. Measurability
D. Substantiality

49 A technology company identifies a niche of highly specialized users. The niche is measurable, reachable, and responsive, but expected demand cannot cover the fixed costs of a dedicated product version. What is the best assessment?

Characteristics of a segment Hard
A. The segment lacks accessibility
B. The segment lacks differentiability
C. The segment lacks measurability
D. The segment lacks substantiality

50 A segment's preferences are currently distinctive, but its membership changes rapidly as customers switch between usage situations. Which additional characteristic should the firm examine before investing heavily?

Characteristics of a segment Hard
A. Homogeneity
B. Stability
C. Geographic concentration
D. Demographic simplicity

51 A meal-kit company targets consumers who want convenient dinners, regardless of age or income, and designs separate offers for speed seekers, health planners, and culinary explorers. Which primary segmentation base is being used?

Bases for segmenting a consumer market Hard
A. Demographic segmentation
B. Benefit segmentation
C. Geographic segmentation
D. Cultural segmentation

52 An airline classifies travelers as first-time users, occasional users, frequent users, and former users, then varies loyalty rewards accordingly. Which base is most directly applied?

Bases for segmenting a consumer market Hard
A. Geographic segmentation
B. Generational segmentation
C. Psychographic segmentation
D. Behavioral segmentation

53 A cosmetics firm observes that customers with similar incomes purchase different product lines because they hold different attitudes toward natural ingredients, experimentation, and social identity. Which base best explains the difference?

Bases for segmenting a consumer market Hard
A. Psychographic segmentation
B. Usage-rate segmentation
C. Geographic segmentation
D. Demographic segmentation

54 A food manufacturer identifies a segment defined by consumers who purchase a snack mainly during late-night study sessions. Which combination best describes the segmentation logic?

Bases for segmenting a consumer market Hard
A. Occasion and behavioral segmentation
B. Age and regional segmentation
C. Income and social-class segmentation
D. Climate and family-life-cycle segmentation

55 A retailer uses household income to identify likely premium buyers, but its campaign produces poor results because many high-income households are highly price conscious. What lesson follows?

Bases for segmenting a consumer market Hard
A. Income is never useful for segmentation
B. Income may need to be combined with psychographic or benefit variables
C. Demographics should be used without behavioral data
D. Premium products should always use geographic segmentation

56 A bottled-water company offers one standardized product and message worldwide because customer needs are broadly similar and customization would raise costs substantially. Which level of segmentation is most consistent with this decision?

Levels of market segmentation Hard
A. Mass marketing
B. Niche marketing
C. Individual marketing
D. Micromarketing

57 A sportswear firm creates separate product lines for runners, hikers, and gym users, with each line designed around distinct performance benefits. This is best classified as:

Levels of market segmentation Hard
A. Mass marketing
B. Undifferentiated targeting
C. Segment marketing
D. Individual marketing

58 A software company focuses almost exclusively on compliance tools for small medical clinics, a narrowly defined group with specialized needs and limited direct competition. Which level is illustrated?

Levels of market segmentation Hard
A. Broad demographic marketing
B. Mass marketing
C. Niche marketing
D. Segment marketing

59 An online retailer changes product recommendations, promotional timing, and discounts for each customer using real-time browsing and purchase data. Which level is most accurate?

Levels of market segmentation Hard
A. Individual marketing
B. Mass marketing
C. Niche marketing
D. Local marketing

60 A firm has limited production capacity and strong expertise in serving environmentally conscious buyers, but the overall market is highly competitive. Which segment-selection principle is most appropriate?

Factors influencing the selection of market segments Hard
A. Choose a segment matching capabilities and resources
B. Target every segment to spread risk
C. Ignore competition because demand is measurable
D. Select the largest segment regardless of fit