Chap 8 learning questions

TOP 10 Learning Questions for

(Chapter 8- Identifying
Market Segments and
Targets)

Nailah P. Cristobal
December 16, 2011
Marketing Management Class of
Prof. Remigio Joseph De Ungria

Colorful Me http://nailah08.blogspot.com

1. A ______ is a more narrowly defined customer

group seeking a distinctive mix of benefits.

A. Segment
B. Local Area
C. Place
D. Niche
E. Individual

http://nailah08.blogspot.com 2

Four Levels of Micromarketing

Segments Niches

Local Areas Individuals


What does an attractive
niche look like?

• fairly small but has size, profit, and growth
potential
• unlikely to attract many other competitors
• gains certain economies through specialization


1. A ______ is a more narrowly defined customer

group seeking a distinctive mix of benefits.

A. Segment
B. Local Area
C. Place
D. Niche
E. Individual


2. Which is not a part of segmenting
consumer markets?

A. Behavioral
B. Geographic
C. Psychographic
D. Demographic
E. Cultural


Segmenting Consumer Markets

Geographic

Demographic

Psychographic

Behavioral


Segmenting Consumer Markets

divide the market into
geographical units such as nations
Geographic states, regions, countries, cities

divide the market into variables
such as age and life cycle,
Demographic life stage, gender, income,
generation, social class

divide the market into groups
Psychographic on the basis of psychological/
personality traits, lifestyle,
or values
Behavioral
divide the market on the basis
of their knowledge, attitude &
response to a product


2. Which is not a part of segmenting
consumer markets?

A. Behavioral
B. Geographic
C. Psychographic
D. Demographic
E. Cultural


3. How many roles do people play in a buying
decision?

A. Four
B. Five
C. Six
D. Three
E. Two


Behavioral Segmentation

Behavioral Variables
5 Decision Roles
• Occasions
• Initiator
• Benefits
• Influencer
• User Status
• Decider
• Usage Rate
• Buyer
• Buyer Readiness
• User
• Loyalty Status
• Attitude

Decision Roles

Assume a wife initiates a request
5 Decision Roles that she wants a new macbook on her
birthday. The husband may then
• Initiator seek advice from his best friend
who has a macbook and is a key
• Influencer influencer in what models to consider.
• Decider After presenting the alternative
choices to his wife , he then
• Buyer purchases her preferred model which,
as it turns out, ends up being used by
• User the entire family .


3. How many roles do people play in a buying
decision?

A. Four
B. Five
C. Six
D. Three
E. Two


4. ___________ are consumers who buy only
one brand all the time.

A. Split Loyals
B. Switchers
C. Hard-core Loyals
D. Shifting Loyals
E. Loyalists


Loyalty Status

Hard-core
Loyals
Split Loyals

Shifting Loyals

Switchers


4 Groups based on Loyalty Status

 Hard-core loyals-Consumers who buy only one
brand all the time.
 Split loyals-Consumers who are loyal to two or
three brands.
 Shifting loyals-Consumers who shift loyalty from
one brand to another.
 Switchers-Consumers who show no loyalty to
any brand.


4. ___________ are consumers who buy only
one brand all the time.

A. Split Loyals
B. Switchers
C. Hard-core Loyals
D. Shifting Loyals
E. Loyalists


5. Which statement is false?

A. The size, purchasing power, and characteristics of
the segments can be measured.
B. The segments are small and profitable enough to
serve.
C. The segments can be effectively reached and
served.
D. The segments are conceptually distinguishable.
E. Effective programs can be formulated for attracting
and serving the segments.


Effective Segmentation Criteria

Measurable

Substantial

Accessible

Differentiable

Actionable


Effective Segmentation Criteria

• size, purchasing power &
Measurable characteristics can be measured

• should be large and profitable
Substantial enough to serve

•can be effectively reached and
Accessible served

• can be distinguishable and
Differentiable responsive to marketing mix

Actionable •Should formulate effective
programs to attract and serve


5. Which statement is false?

A. The size, purchasing power, and characteristics of
the segments can be measured.
B. The segments are small and profitable enough to
serve.
C. The segments can be effectively reached and
served.
D. The segments are conceptually distinguishable.
E. Effective programs can be formulated for attracting
and serving the segments.


6. The ____________ Model measures the strength of
consumers' psychological commitment to brands and
their openness to change.

A. Adaptation
B. Innovation
C. Conversion
D. Modification
E. Qualification


The Conversion Model

Convertible Shallow Average Entrenched

Users Non-Users

Strongly Weakly
Unavailable Unavailable Ambivalent Available



• most likely to defect
Convertible

• uncommitted to the brand and
Shallow could switch

• committed to the brand and
Average unlikely to switch (short term)

• highly unlikely to switch in
Entrenched foreseeable future


6. The ____________ Model measures the strength of
consumers' psychological commitment to brands and
their openness to change.

A. Adaptation
B. Innovation
C. Conversion
D. Modification
E. Qualification


7. __________ determines which demographics,
lifestyles, and usage behaviors make the
segment distinct.

A. Segment Identification
B. Segment Attractiveness
C. Segment Profitability
D. Segment Positioning
E. Segment “Acid Test”


Steps in Segmentation Process
Needs-based Segmentation

Segment Identification

Segment Attractiveness

Segment Profitability

Segment Positioning

Segment Acid Test


Segment Identification

 For each needs-based segment, determine which
demographics, lifestyles, and usage behaviors make
the segment distinct and identifiable (actionable) .


7. __________ determines which demographics,
lifestyles, and usage behaviors make the
segment distinct.

A. Segment Identification
B. Segment Attractiveness
C. Segment Profitability
D. Segment Positioning
E. Segment “Acid Test”


8. To what particular segment does this
question relate to, “What geographical area
should we serve?”

A. Operating Variable
B. Purchasing Approaches
C. Personal Characteristics
D. Demographic
E. Situational Factors


Segmenting for Business Markets

Demographic

Operating Variable

Purchasing Approaches

Situational Factors

Personal Characteristics


Segmenting for Business Markets

Demographic

1. Industry: Which industries
should we serve?
2. Company size: What size
companies should we serve?
3. Location-What geographical
areas should we serve?


8. To what particular segment does this
question relate to, “What geographical area
should we serve?”

A. Operating Variable
B. Purchasing Approaches
C. Personal Characteristics
D. Demographic
E. Situational Factors


9. ________ can be defined in terms of the time of day,
week, month, year, or in terms of other well-defined
temporal aspects of a consumer's life.

A. Occasions
B. Benefits
C. User Status
D. Usage Rate
E. Buyer- Readiness



Behavioral Variables
5 Decision Roles
• Occasions
• Initiator
• Benefits
• Influencer
• User Status
• Decider
• Usage Rate
• Buyer
• Buyer Readiness
• User
• Loyalty Status
• Attitude


During the 1960’s-70’s, cranberry
was just consumed as a side-dish
Behavioral Variable during thanksgiving. Because of
pesticide scare, growers thought
• Occasions of a way to diversify and create a
year round market by producing
cranberry juice.


9. ________ can be defined in terms of the time of day,
week, month, year, or in terms of other well-defined
temporal aspects of a consumer's life.

A. Occasions
B. Benefits
C. User Status
D. Usage Rate
E. Buyer- Readiness


10. What type of non-users are most likely to be
acquired based on the Conversion Model?

A. Strongly Unavailable
B. Weakly Unavailable
C. Ambivalent
D. Unavailable
E. Available



Convertible Shallow Average Entrenched

Users Non-Users

Strongly Weakly
Unavailable Unavailable Ambivalent Available


Non Users

 Strongly unavailable (unlikely to switch to the brand-
their preference lies strongly with their current
brands)
 Weakly unavailable (not available to the brand
because their preference lies with their current brand,
although not strongly)
 Ambivalent (as attracted to the brand as they are to
their current brands)
 Available (most likely to be acquired in the short run)


10. What type of non-users are most likely to be
acquired in the short-run based on the Conversion
Model?

A. Strongly Unavailable
B. Weakly Unavailable
C. Ambivalent
D. Unavailable
E. Available


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