Chapter Seven Customer-Driven Marketing Strategy Quiz
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Questions and Answers

What is market segmentation?

  • The process of analyzing competition in the market
  • The process of identifying one single homogeneous market
  • The process of dividing large, heterogeneous markets into smaller, more homogeneous markets (correct)
  • The process of combining small markets into large, heterogeneous markets

    • Which is NOT a type of market segmentation?

  • Economic segmentation (correct)
  • Geographic segmentation
  • Demographic segmentation
  • Behavioral segmentation

    • What is the main goal of market segmentation?

  • To ignore the unique needs of the market
  • To create larger, more diverse markets
  • To reach small markets more efficiently and effectively (correct)
  • To combine different markets into a single market

    • Which type of segmentation divides markets based on factors such as lifestyle, personality, and social class?

    <p>Psychographic segmentation</p> Signup and view all the answers

    What is the process that companies use to reach small markets more efficiently and effectively with products and services that match their unique needs?

    <p>Market targeting</p> Signup and view all the answers

    Which type of market segmentation divides markets based on variables such as age, gender, income, and education?

    <p>Demographic segmentation</p> Signup and view all the answers

    What is geographic segmentation in marketing?

    <p>Dividing the market into different geographical units such as nations, regions, states, counties, or cities</p> Signup and view all the answers

    What is demographic segmentation based on?

    <p>Age and life-cycle groups</p> Signup and view all the answers

    What does income segmentation divide the market into?

    <p>Affluent or low-income consumers</p> Signup and view all the answers

    What is behavioral segmentation based on?

    <p>Knowledge, attitudes, uses, or responses to a product</p> Signup and view all the answers

    What is multiple segmentation used for?

    <p>To identify smaller, better-defined target groups</p> Signup and view all the answers

    What does geodemographic segmentation do?

    <p>Divides groups into consumer lifestyle patterns</p> Signup and view all the answers

    What does PRIZM NE do?

    <p>Classifies every American household into 66 unique segments</p> Signup and view all the answers

    What is the primary purpose of market segmentation?

    <p>To reach small markets more efficiently and effectively with products and services that match their unique needs</p> Signup and view all the answers

    What are the main segments in market segmentation?

    <p>Geographic, demographic, and psychographic segmentation</p> Signup and view all the answers

    What are the requirements for effective segmentation?

    <p>Homogeneous markets, identifiable and measurable segments, and substantiality</p> Signup and view all the answers

    What is the process of segmenting consumer markets based on factors such as lifestyle, personality, and social class?

    <p>Psychographic segmentation</p> Signup and view all the answers

    Which type of market segmentation divides markets based on variables such as age, gender, income, and education?

    <p>Demographic segmentation</p> Signup and view all the answers

    In market segmentation, what does income segmentation aim to do?

    <p>Divide the market based on income levels</p> Signup and view all the answers

    What is the process of offering different products or using different marketing approaches for different age and life-cycle groups?

    <p>Age and life-cycle stage segmentation</p> Signup and view all the answers

    What type of segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality?

    <p>Demographic segmentation</p> Signup and view all the answers

    What is an example of multivariable segmentation that divides groups into consumer lifestyle patterns?

    <p>Geodemographic segmentation</p> Signup and view all the answers

    What type of segmentation divides buyers into different groups based on social class, lifestyle, or personality traits?

    <p>Psychographic segmentation</p> Signup and view all the answers

    What divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product?

    <p>Usage rate</p> Signup and view all the answers

    What type of market segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities?

    <p>Geographic segmentation</p> Signup and view all the answers

    Which type of segmentation classifies every American household into 66 unique segments organized into 14 different social groups?

    <p>PRIZM NE</p> Signup and view all the answers

    What is the process of dividing the market based on factors such as lifestyle, personality traits, or social class?

    <p>Psychographic segmentation</p> Signup and view all the answers

    Study Notes

    What is Market Segmentation?

    • Market segmentation is the process of dividing a larger market into smaller groups of consumers with similar needs or characteristics.

    Types of Market Segmentation

    • Demographic segmentation: divides markets based on variables such as age, gender, income, and education.
    • Geographic segmentation: divides markets based on geographical units such as nations, regions, states, counties, or cities.
    • Psychographic segmentation: divides markets based on factors such as lifestyle, personality, and social class.
    • Behavioral segmentation: divides markets based on behavior, such as knowledge, attitudes, uses, or responses to a product.
    • Geodemographic segmentation: combines geographic and demographic data to divide markets.
    • Multivariable segmentation: uses multiple variables to divide markets, such as PRIZM NE, which classifies every American household into 66 unique segments organized into 14 different social groups.

    Goals and Requirements

    • The primary purpose of market segmentation is to identify and target specific groups of consumers with products and services that meet their unique needs.
    • The main goal of market segmentation is to increase efficiency and effectiveness in reaching target markets.
    • Requirements for effective segmentation include: identifying segments, understanding segment needs, developing marketing mixes, and allocating resources.

    Multiple Segmentation

    • Multiple segmentation is used to target multiple segments with different products, services, or marketing approaches.

    Process of Market Segmentation

    • The process of market segmentation involves dividing the market into smaller groups of consumers with similar needs or characteristics, understanding segment needs, developing marketing mixes, and allocating resources.

    Examples

    • An example of multivariable segmentation is PRIZM NE, which divides the market into 66 unique segments organized into 14 different social groups.
    • An example of psychographic segmentation is dividing the market based on factors such as lifestyle, personality, and social class.
    • An example of demographic segmentation is dividing the market based on variables such as age, gender, income, and education.

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    Description

    Test your knowledge of market segmentation, targeting, differentiation, and positioning as part of customer-driven marketing strategy. This quiz covers concepts from Chapter 7 of 'Customer-Driven Marketing Strategy: Creating Value for Target Customers'.

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