Unit 6: Segmentation Decisions - Practice Quiz

1 What is market segmentation?

2 Why do marketers use market segmentation?

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

4 Which activity is most closely related to market segmentation?

5 Which characteristic makes a market segment measurable?

6 A segment is accessible when a company can:

7 A segment is substantial when it is:

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

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

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

11 Geographic segmentation divides a market according to:

12 Which variable is commonly used in psychographic segmentation?

13 Behavioral segmentation focuses mainly on consumers':

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

15 Mass marketing involves:

16 Segment marketing targets:

17 Niche marketing focuses on:

18 Micromarketing means tailoring marketing efforts to:

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

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

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?

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?

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

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?

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?

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?

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?

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?

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

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

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

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

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

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?

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

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:

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?

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?

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?

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

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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:

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?

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?

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?