Chapter 03 - Market Segments and Customer Value

Chapter 03
Market Segments and Customer Value

True / False Questions

1. (p. 83) "Jill the "soccer mom" is the main shopper for the famil a!oids electronics stores.
She is "ell-educated and confident# "ants to enrich her children$s li!es "ith technolog and
et is intimidated % technolog and &argon. Jill is an e'ample of a possi%le market target for
(est (u.
TRUE

Difficulty: Moderate

). (p. 84) *he concept of $one-si+e-fits-all$ mass market is increasingl less rele!ant and the
possi%ilities of $one-to-one$ marketing is %ecoming more likel.
TRUE

Difficulty: Moderate

3. (p. 84) Segmentation is an important tool in strategic marketing# "hich is linked to choosing
market targets and positioning against alternati!es to %uild competiti!e ad!antage.
TRUE

Difficulty: Moderate

,. (p. 85) Strategic segmentation has the goal of identifing market segments that are the same
in their purchasing po"er# goals# aspirations and %eha!ior# in "as rele!ant to identifing ne"
product and !alue opportunities.
FASE

Difficulty: Moderate

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Chapter 03 - Market Segments and Customer Value
-. (p. 86) *he opportunit for segmentation occurs "hen differences in %uers$ demand
.response/ functions allo" market demand to %e di!ided into segments# each "ith a distinct
demand function
TRUE

Difficulty: Moderate

0. (p. 89) Market segmentation is decided after market targeting and positioning strategies.
FASE

Difficulty: Challenging

1. (p. 92) *he lifestle of the Metrose'uals is affluent# ur%an sophisticate# "ho adds deeper
meaning# 2ualit and %eaut to consumption.
TRUE

Difficulty: Moderate

3. (p. !3) 4erceptual mapping# "hen used and interpreted properl is a useful tool for anal+ing
product-market structure to identif possi%le market targets and positioning concepts.
TRUE

Difficulty: "a#y

5. (p. !6) 6hen forming segments# it is not useful to find out much a%out the customers in each
segment.
FASE

Difficulty: "a#y

3-)
Chapter 03 - Market Segments and Customer Value
10. (p. !8) *he "as in "hich ad!ertisers reach oung consumers "ith promotional messages
"hich get around parental controls and con!entional media ma %e unethical.
TRUE

Difficulty: "a#y


Multiple Choi!e Questions

11. (p. 84) *he differences in %uers according to ho" the use products# the needs and
preferences that the products satisf and their consumption patterns create 77777.
A" Market segments
(. 8ne-si+e-fits-all
C. 9udience management
:. 4roduct differentiation

Difficulty: "a#y

1). (p. 84) 77777 is the process of identifing and anal+ing su%-groups of %uers in a product-
market "ith similar response characteristics.
A" Market segmentation
(. 8ne-si+e-fits-all
C. 9udience management
:. 4roduct differentiation

Difficulty: Moderate

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Chapter 03 - Market Segments and Customer Value
13. (p. 85) 77777 links to the management !ision and strategic intent of corporate strateg and
emphasi+es product %enefits that different tpes of %uers seek.
A" Strategic segmentation
(. Managerial segmentation
C. 8perational segmentation
:. 9udience management

Difficulty: Moderate

3-,
Chapter 03 - Market Segments and Customer Value
1,. (p. 85) 77777 is concerned "ith allocating resources around segment targets# including them
in marketing plans and aligning organi+ational processes around them.
9. Strategic segmentation
#" Managerial segmentation
C. 8perational segmentation
:. 9udience management

Difficulty: Moderate

1-. (p. 85) 77777 issues are concerned "ith the marketing program changes needed to reach
segment targets "ith ad!ertising and promotions and "ith distri%ution sstems.
9. Strategic segmentation
(. Managerial segmentation
C" 8perational segmentation
:. 9udience management

Difficulty: Moderate

10. (p. 8$) 77777 consists of e!aluating and selecting one or more segments "hose !alue
re2uirements pro!ide a good match "ith the organi+ation$s capa%ilities.
9. Strategic segmentation
(. Managerial segmentation
C. 9udience management
$" Market targeting

Difficulty: "a#y

11. (p. 8$) Selecting the !aria%le.s/ to use as the %asis for identifing segments is part of 77777.
A" ;dentifing the segments
(. Market targeting
C. Statistical analsis
:. (eha!ior of the market

Difficulty: Challenging

3--
Chapter 03 - Market Segments and Customer Value
13. (p. 88) (M6$s 77777 for the ne" Mini# as a life-stle !ehicle# included descri%ing the care
as 2uintessentiall cool "ith its %iggest selling point %eing its indi!idualistic appeal.
9. Value re2uirements
#" 4ositioning strateg
C. Segmentation design
:. Market targeting

Difficulty: Moderate

15. (p. 89) Selecting the !aria%le.s/ to use as the %asis for identifing segments is part of 77777.
A" ;dentifing the segments
(. Market targeting
C. Statistical analsis
:. (eha!ior of the market

Difficulty: Challenging

)0. (p. 9!) 777777 consider ho" the %uer utili+es the product# such as purchasing a meal a"a
from home# for the purpose of entertainment.
A" <se situation !aria%les
(. (uers needs and preferences
C. :emographic !aria%les
:. 4urchase %eha!ior

Difficulty: "a#y

)1. (p. 9!) 777777 such as age and income are !aria%les that ma %e used to di!ide a market into
segments.
9. <se situation !aria%les
(. (uers needs and preferences
C" :emographic !aria%les
:. 4urchase %eha!ior

Difficulty: "a#y

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Chapter 03 - Market Segments and Customer Value
)). (p. 9!) 777777 include attitudes# %rand a"areness and %rand preference.
9. <se situation !aria%les
#" (uers needs and preferences
C. :emographic !aria%les
:. 4urchase %eha!ior

Difficulty: "a#y

)3. (p. 9!) 777777 descri%e %rand-use and consumption .e.g.# si+e and fre2uenc of purchase/.
9. <se situation !aria%les
(. (uers needs and preferences
C. :emographic !aria%les
$" 4urchase %eha!ior !aria%les

Difficulty: "a#y

),. (p. 6) 777777 ma %e useful for segmenting product-markets in descri%ing regional
differences among consumers.
9. <se situation !aria%les
(. (uers needs and preferences
C. 4urchase situation !aria%les
$" =eographical !aria%les

Difficulty: "a#y

)-. (p. 9!) 777777 indicate "hat people do .acti!ities/# their interests# their opinions and their
%uing %eha!ior and e'tend %eond demographics.
9. <se situation !aria%les
(. (uers needs and preferences
C" >ifestle !aria%les
:. 4urchase %eha!ior !aria%les

Difficulty: "a#y

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Chapter 03 - Market Segments and Customer Value
)0. (p. 93) ?ood# rest and se' are e'amples of 77777.
9. Safet needs
(. @elationship needs
C. 4ersonal satisfaction
$" 4hsiological needs

Difficulty: Moderate

)1. (p. 93) 9 consumer "ho decides to install a securit sstem in her home is moti!ated % her
77777.
A" Safet needs
(. @elationship needs
C. 4ersonal satisfaction
:. 4hsiological needs

Difficulty: Moderate

)3. (p. 93) 77777 are enduring sstems of fa!ora%le or unfa!ora%le e!aluations a%out %rands.
*he reflect the %uer$s o!erall liking or preference for a %rand.
9. Safet needs
(. @elationship needs
C" 9ttitudes
:. 4hsiological needs

Difficulty: Moderate

)5. (p. 93) 77777 are ho" %uers select# organi+e and interpret marketing stimuli# such as
ad!ertising# personal selling# price and the product.
9. Safet needs
(. @elationship needs
C. 9ttitudes
$" 4erceptions

Difficulty: Moderate

3-3
Chapter 03 - Market Segments and Customer Value
30. (p. 94) 9.n/ 77777 decision ma %e an e'pensi!e purchase# ha!e important personal
conse2uences and impact the consumer$s ego and social needs.
A" Aigh-in!ol!ement
(. >o"-in!ol!ement
C. @outine
:. ;mpulse

Difficulty: Moderate

31. (p. 98) 77777 occurs "hen a product offering is percei!ed % the %uer as different from the
competition on an phsical or nonphsical product characteristic# including price.
9. Aigh-in!ol!ement
(. >o"-in!ol!ement
C. @outine
$" 4roduct differentiation

Difficulty: "a#y


Essa% Questions

3). (p. 85) B'plain the goal of strategic marketing segmentation.
*he goal of strategic marketing segmentation is to support the processes "here% products are
designed and de!eloped around the needs of different tpes of purchaser to offer superior
customer !alue and then to identif the mechanisms % "hich that !alue can %e deli!ered.
*his re2uires segmenting markets in "as that reflect ho" customers actuall li!e their li!es
and the &o%s that the need to get done.

Difficulty: "a#y

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Chapter 03 - Market Segments and Customer Value
33. (p. 8$) :escri%e an e'ample from the airline industr that illustrates ho" market analsis
identified ne" market space.
Market analsis ma identif segments not recogni+ed or ser!ed effecti!el % competitors.
*here ma %e opportunities to tap into ne" areas of !alue and create a uni2ue space in the
market. ?or e'ample# "hile the glo%al airline %usiness is highl competiti!e# lo"-cost airlines
like South"est ha!e %een a%le to de!elop profita%le opportunities. ;nterestingl# the ne"est
entrants to the sector are all-%usiness-class airlines# pro!iding premium air tra!el at fares !er
competiti!e against the con!entional airlines.

Difficulty: Moderate

3,. (p. 96) :iscuss if it is "orth"hile to segment a product-market.
6hile in man instances segmentation is a sound strateg# its feasi%ilit and !alue need to %e
e!aluated. Conetheless# the gro"ing fragmentation of mature mass markets into segments
"ith different needs and responsi!eness to marketing actions ma mandate segmentation
strateg. Correspondingl# the gro"th of narro"cast media ca%le-tele!ision and radioD
speciali+ed maga+inesD cell-phone and personal digital assistant screens and the ;nternet has
made ma&or changes in the costs of reaching market segments. Segment targets "hich could
not traditionall %e reached "ith communications and product !ariants to match their needs at
reasona%le costs to the seller ma no" %e accessi%le targets. *he 6e% is changing the a%ilit
of companies %oth to identif segments in the marketplace and to reach them more precisel
"ith targeted communications.

Difficulty: Moderate

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Chapter 03 - Market Segments and Customer Value
3-. (p. 96) :iscuss the importance determining differences in the responsi!eness of the %uers in
the product-market to positioning strategies as a ke segment identification re2uirement.
:etermining differences in the responsi!eness of the %uers in the product-market to
positioning strategies is a ke segment identification re2uirement. Suppose the customers in a
product-market are placed into four groups# each a potential segment# using a !aria%le such as
income .affluent# high# medium and lo"/. ;f each group responds .e.g.# amount of purchase/
in the same "a as all other groups to a marketing mi' strateg# then the four groups are not
market segments. ;f segments actuall e'ist in this illustration# there must %e differences in
the responsi!eness of the groups to marketing actions# such as pricing# product features and
promotion. *he presence of real segments re2uires actual response differences. Simpl
finding differences in %uers$ characteristics such as income is not enough.

Difficulty: Moderate

30. (p. !4) 6hat are three factors that "orking together point to the %enefits of considering !er
small segmentsE
Se!eral factors "orking together point to the %enefits of considering !er small segments - in
some cases# segments of one. *hese include .1/ the capa%ilities of companies to offer cost
effecti!e# customi+ed offeringsD .)/ the desires of %uers for highl customi+ed productsD and
.3/ the organi+ational ad!antages of close customer relationships.

Difficulty: "a#y

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