Segmentation, Targeting, and Positioning Quiz

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Questions and Answers

What do beliefs and attitudes influence according to the content?

Product design

Pricing strategies

Buying behavior (correct)

Market segmentation

Which attribute is not listed as a consideration for hotels?

Price

Cleanliness

Location

Safety (correct)

In the expectancy-value model, which attribute is assigned the lowest weight by Linda?

Memory capacity

Size and weight

Price (correct)

Graphics capability

Which laptop has the highest perceived value according to Linda's calculations?

Laptop A Signup and view all the answers

What is the primary focus of non-compensatory models of consumer choice?

Not allowing positive and negative attributes to balance out Signup and view all the answers

How many subdecisions might a consumer make when executing a purchase intention?

Five Signup and view all the answers

Which of the following attributes is included in Linda's evaluation of laptops?

Memory capacity Signup and view all the answers

What factor primarily influences the purchasing roles within a traditional husband–wife relationship?

Product category Signup and view all the answers

What is an example of a market segmentation factor for tires?

Tread life Signup and view all the answers

Why is it important for marketers to recognize the changing roles of men and women in household purchasing?

Marketers should target both genders equally Signup and view all the answers

Which of the following is NOT a factor that influences a buyer's decision according to personal characteristics?

Death of a previous spouse Signup and view all the answers

How do marketers typically respond to the knowledge of different occupational groups?

They tailor products according to occupational needs Signup and view all the answers

In consumer behavior, what does the term 'role' refer to?

The expected activities a person must perform Signup and view all the answers

Which trait is associated with the concept of brand personality under the sincerity category?

Honesty Signup and view all the answers

What personal characteristic is closely linked to variations in consumption patterns due to age?

Family life cycle Signup and view all the answers

Which of the following best describes the personality trait of sociability in consumer behavior?

Tendency to interact and communicate with others Signup and view all the answers

What is the primary purpose of market segmentation?

To divide a diverse market into smaller sub-markets Signup and view all the answers

Which of the following is NOT a basis of market segmentation mentioned?

Technological Signup and view all the answers

How does geographic segmentation help businesses like McDonald's?

By responding to different local preferences with tailored products Signup and view all the answers

What characteristic is primarily considered in psychographic segmentation?

Lifestyle choices Signup and view all the answers

What is a key driver of sales frequency?

Product consumption rate Signup and view all the answers

Which market segment would likely benefit from ready-to-eat products placed at the front of a grocery store?

On the go customers Signup and view all the answers

What strategy can help consumers replace products more quickly?

Tying replacement to a specific holiday Signup and view all the answers

Which type of segmentation focuses on factors such as age, gender, and family size?

Demographic segmentation Signup and view all the answers

Which psychological process involves the influence of consumer needs on behavior?

Motivation Signup and view all the answers

According to Freud's theory, what shapes people's behavior?

Unconscious psychological forces Signup and view all the answers

What type of behavioral segmentation might Hallmark use?

Consumer attitudes and loyalty status Signup and view all the answers

What is an outcome of effective market segmentation for a business?

Higher sales and profits due to tailored marketing strategies Signup and view all the answers

What does Herzberg's two-factor theory distinguish between?

Satisfiers and dissatisfiers Signup and view all the answers

What is the technique called that helps trace a person's motivations?

Laddering Signup and view all the answers

Which of the following is an example of a biogenic need?

The need for thirst Signup and view all the answers

What can increase actual product usage according to the content?

Providing usage guidelines Signup and view all the answers

What are considered dissatisfiers in the context of product purchases?

Poor training manual Signup and view all the answers

Which of the following statements is true regarding the presence of a product warranty?

It does not act as a satisfier. Signup and view all the answers

What is the process by which we interpret information inputs to create a meaningful picture of the world?

Perception Signup and view all the answers

Which type of attention is described as being purposeful?

Voluntary attention Signup and view all the answers

What does selective distortion lead consumers to do?

Interpret information to fit their preconceptions. Signup and view all the answers

Which of the following is most likely remembered due to selective retention?

Positive attributes of a favored product. Signup and view all the answers

What is the average number of ads or brand communications a person may be exposed to daily?

1,500 Signup and view all the answers

In blind taste tests, how do consumers’ opinions of a product typically differ?

Those unaware of the brand usually favor it more. Signup and view all the answers

Study Notes

Segmentation

Segmentation divides a diverse market into smaller, similar sub-markets for targeted marketing.
Grocery store example segments customers into family feeders (regular purchasers for the family) and on-the-go customers (busy individuals seeking convenience foods).
Market segmentation enhances consumer-focused marketing, optimizing marketing programs and resource allocation, leading to increased sales and profits.

Stages of Market Segmentation

Establish the basis for segmentation.
Determine key characteristics for each market segment.

Basis of Segmentation

Geographic Segmentation
- Includes nations, states, regions, cities, and neighborhoods.
- Example: McDonald's adapts its menu globally to cater to local tastes (e.g., McAloo Tikki in India).
Demographic Segmentation
- Consider factors like age, gender, family size, income, occupation, education, religion, and ethnicity.
- Example: Pepperfry segments furniture based on age and life stages.
Psychographic Segmentation
- Focuses on lifestyle and personality traits.
- Example: Harley Davidson targets male bikers desiring freedom and a motorcycle lifestyle.
Behavioral Segmentation
- Analyzes usage occasions, usage rate, loyalty status, buyer readiness, and attitudes.
- Example: Hallmark tailors greeting cards based on behavioral insights.

Personal Factors Affecting Buying Decisions

Roles and Status
- Role denotes expected activities and associated status.
- Consumers select products reflecting their roles and societal status.
Age and Life Stage
- Preferences and consumption shaped by age and family dynamics.
Occupation and Economic Circumstances
- Occupation influences consumption needs; marketers tailor products to different occupational groups.
Personality and Self-Concept
- Personality traits impact buying behaviors; brands may reflect these traits.

Beliefs and Attitudes

Beliefs are descriptive thoughts held about products, while attitudes are enduring evaluations that influence buying behavior.
The expectancy-value model quantifies perceived value based on weighted beliefs.

Purchase Decision

Involves brand preference, dealer choice, quantity, timing, and payment methods.
Non-compensatory choice models suggest positive and negative attributes influence purchase decisions individually.

Key Psychological Processes

Motivation
- Comprised of biogenic needs (physiological) and psychogenic needs (psychological).
Freud’s Theory
- Behavior influenced by unconscious motivations, known as "laddering" to determine deeper motivations.
Maslow's Theory
- Hierarchical model explaining human motivation.
Herzberg’s Two-Factor Theory
- Differentiates dissatisfiers (causing dissatisfaction) from satisfiers (leading to satisfaction). Avoiding dissatisfiers is crucial for successful sales.

Perception

Perception shapes consumer understanding through selective attention, distortion, and retention.
Selective Attention: Focus on certain stimuli while ignoring others; people encounter overwhelming advertising.
Selective Distortion: Consumers interpret information to fit existing beliefs or expectations.
Selective Retention: Consumers remember information that supports their attitudes, leading to brand loyalty.

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Description

Test your knowledge on the fundamental concepts of market segmentation, targeting, and positioning as discussed by Dr. Kanu Raheja. This quiz will challenge your understanding of how to divide markets into smaller segments for effective strategy development.