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78) About 3 percent of the population has some degree of allergic reaction, usually mild, to
preservatives used in salad bars. Restaurants might consider people with these allergies as a
separate segment. To implement this segmentation strategy, restaurants would have to prepare a
regular salad bar and a special salad bar for the allergies segment. This multiple product,
multiple markets segment strategy would have the greatest difficulty meeting which of the
following criteria used to form market segments?
A) different needs of buyers among different segments
B) similarity of needs of potential buyers within a segment
C) simplicity and cost-effectiveness of assigning potential buyers to segments
D) potential for increased profit and ROI
E) potential of a marketing action to reach a segment
79) Four general categories are used to segment consumer markets, one of which is
A) supplier segmentation.
B) demand segmentation.
C) regional segmentation.
D) behavioral segmentation.
E) product segmentation.
80) Segmentation based on where prospective customers live or work is referred to as
A) zip code segmentation.
B) geographic segmentation.
C) trade area segmentation.
D) district segmentation.
E) NAICS code segmentation.
81) Region and city size are both variables used to employ ________ segmentation.
A) geographic
B) behavioral
C) district
D) psychographic
E) demographic
82) Campbell Soup Co. found that its canned nacho cheese sauce, which could be heated and
poured directly onto nacho chips, was too spicy for Americans in the East and not spicy enough
for those in the West and Southwest. Today, Campbell's plants in Texas and California produce a
spicier nacho cheese sauce than what is produced in the other plants. Campbell's is using
________ segmentation.
A) demographic
B) behavioral
C) economic
D) geographic
E) psychographic
83) Which of the following statements best illustrates geographic segmentation?
A) GE builds a downsized microwave oven to hang under kitchen cabinets.
B) Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners.
C) In China, KFC sells a spicier chicken the farther away its restaurants are from the coastal
areas.
D) A fast-food hamburger restaurant is only open for breakfast on weekdays and Saturdays but
not Sundays.
E) A gourmet grocer advertises its services on a small-audience classical music station even
though there is a much larger-audience rock station in the area.
84) Universal Concerts wants to bring a series of music concerts to Canada next year. In general,
western Canadians prefer country music while eastern Canadians prefer rock. In fact, a country
music event in eastern Canada is very likely to have lots of empty seats. To maximize revenue,
Universal Concerts should segment its Canadian market according to
A) geographic characteristics.
B) demographic characteristics.
C) music format characteristics.
D) behavioral characteristics.
E) psychographic characteristics.
85) Variables that are based on some objective physical (gender, ethnicity), measurable (age,
income), or other classification attribute (birth era, occupation) of prospective customers are used
in which segmentation base?
A) personality
B) usage
C) needs
D) demographic
E) behavioral
86) Which of the following is a consumer market demographic segmentation variable?
A) personality
B) occupation
C) usage rate
D) needs
E) region
87) More than half of all U.S. households are composed of only one or two persons, so Aunt
Jemima offers one serving meals, such as its Ham & Egg Scramble and Oatmeal Pancakes. Aunt
Jemima is using ________ as the basis to segment its market.
A) usage rates
B) usage patterns
C) demographic characteristics
D) behavior characteristics
E) psychographic characteristics
88) Procter & Gamble (P&G) decided to skip a generation of consumers when it began to market
Old Spice deodorant. The target market consists of men aged 18 to 34 years old (Generation Y)
who don't remember the Old Spice brand sold to their grandfathers (pre baby boomer) many
years ago. P&G is using which type of segmentation variable?
A) behavioral
B) demographic
C) lifestyle
D) geographic
E) psychographic
89) The State of Alabama Board of Tourism ran a series of ads showing traditional families
enjoying various attractions in the state. Since the apparent target of these ads is the traditional
family, it appears that the State of Alabama Board of Tourism has segmented the market using
________ variables.
A) demographic
B) regional
C) socioeconomic
D) geographic
E) psychographic
90) Which of the following statements demonstrate the formation of a segment based on
household size?
A) Campbell's makes a spicier nacho cheese sauce for its distributors in Texas than it does in
Maine.
B) GE built a smaller microwave oven to hang under kitchen cabinets.
C) Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners.
D) A fast-food hamburger restaurant is only open for breakfast on weekdays and Saturdays but
not Sundays.
E) A gourmet grocer advertises its services on a small-audience classical music station even
though there is a much larger-audience rock station in the area.
91) At a Hallmark store you can find several lines of greeting cards, including Fresh Ink,
Nature's Sketchbook, Shoebox, Maxine, Mahogany, and Tree of Life cards—all made by
Hallmark for sale in its stores and intended to appeal to different target markets. The Mahogany
line is designed to appeal to African Americans. This is an example of ________ segmentation.
A) regional
B) lifestyle
C) demographic
D) geographic
E) psychographic
92) Which of the following statements regarding segmentation bases is most accurate?
A) The identification of demographic variables is more objective than the identification of
psychographic variables, which is more subjective.
B) Marketers should use segmentation bases in this order to reduce potential costs: behavioral,
demographic, psychographic, and geographic.
C) The identification of psychographic variables is more objective than the identification of
demographic variables, which is more subjective.
D) Behavioral segmentation is based primarily on personality.
E) Psychographic segmentation is based primarily on product features.
93) Segmentation based on some subjective mental or emotional attributes, aspirations, or needs
of prospective customers is referred to as
A) behavioral segmentation.
B) affective segmentation.
C) socioeconomic segmentation.
D) psychographic segmentation.
E) sociocultural segmentation.
94) All of the following are psychographic segmentation variables except which?
A) lifestyle
B) needs
C) birth era
D) PRIZM
E) personality
95) Personality and lifestyle are both variables used to employ ________ segmentation.
A) geographic
B) behavioral
C) attitudinal
D) psychographic
E) demographic
96) Magazines such as Fitness, Field & Stream, Golf Digest, and Health focus on how people
live their lives, and thus all use a ________ segmentation strategy.
A) psychographic
B) behavioral
C) situational
D) socioeconomic
E) geographic
97) The Nielsen PRIZM® lifestyle segmentation is based on the belief that "birds of a feather
flock together." It combines ________ with a geographic component.
A) situational segmentation
B) socioeconomic segmentation
C) demographic segmentation
D) psychographic segmentation
E) behavioral segmentation
98) Segmentation based on some observable actions or attitudes by prospective customers, such
as what benefits they seek, as well as where, how frequently, and why they buy, is referred to as
A) demographic segmentation.
B) psychographic segmentation.
C) geographic segmentation.
D) behavioral segmentation.
E) socioeconomic segmentation.
99) Segmentation based on what product features are important to different customers is a form
of
A) demographic segmentation.
B) behavioral segmentation.
C) psychographic segmentation.
D) geographic segmentation.
E) socioeconomic segmentation.
100) Retail store type and usage rate are both variables used to employ ________ segmentation.
A) geographic
B) demographic
C) loyalty
D) psychographic
E) behavioral
101) Behavioral segmentation may be based on
A) lifestyles and demographics.
B) retailer and wholesaler behaviors.
C) geographic and demographic criteria.
D) product features and user status.
E) demand and supply.
102) Alamo, a national car rental firm, targets 50 percent of its advertising to salespeople who
rent a car over 40 weeks per year. The company is using ________ segmentation.
A) geographic
B) demographic
C) loyalty
D) psychographic
E) behavioral
103) College dorm residents frequently want to keep and prepare their own food and snacks to
save money or have a late-night snack. However, their dorm rooms are often woefully short of
space. MicroFridge understands this and markets a combination microwave, refrigerator, freezer,
smoke sensor, and charging station appliance targeted to these students. MicroFridge is most
likely using which basis of segmentation?
A) sociocultural segmentation
B) psychographic segmentation
C) geographic segmentation
D) behavioral segmentation
E) socioeconomic segmentation
104) Samsung sells a variety of TVs, from simple and small ones to large smart TVs with
Internet connectivity and 3-D technology. Customers prefer different features, so Samsung uses
which type of segmentation variable based on their viewing preferences?
A) demographic segmentation
B) psychographic segmentation
C) behavioral segmentation
D) geographic segmentation
E) socioeconomic segmentation
105) Many companies have cut travel budgets so that fewer businesspeople are authorized to fly
first class. Despite the shrinking pool of business-class travelers, British Airways has grown
market share for its trans-Atlantic business class by offering greater comfort. Promotions to
frequent fliers stress that passengers can sleep in fully reclining seats and arrive refreshed to
carry out a full day's schedule. The segmentation strategy of British Airways is an example of
A) life stage segmentation.
B) geographic segmentation.
C) social class segmentation.
D) behavioral segmentation.
E) psychographic segmentation.
106) ExxonMobil targets consumers that fill up their gas tanks more than once a week with its
Chase Visa fuel card. Here, ExxonMobil is using which segmentation variable?
A) needs
B) lifestyle
C) behavioral
D) psychographic
E) demographic
107) The quantity consumed or patronage (store visits) during a specific period is referred to as
A) usage rate.
B) purchase metric.
C) consumption index.
D) consumption rate.
E) demand amount.
108) Usage rate refers to
A) the percentage of total possible users divided by the total number of consumers who actually
use a product or service.
B) the number of times a customer uses or recommends a product or service annually.
C) quantity consumed or patronage (store visits) during a specific period.
D) the maximum number of times a customer has used a product or service historically.
E) the profits a firm earns from customers who consume a particular product or service.
109) Massage Envy offers massage services on a subscription basis, so it targets consumers that
desire to get multiple treatments per month. Massage Envy likely segments its market by
A) usage rate.
B) benefits offered.
C) demographics.
D) geography.
E) lifestyle.
110) The market segmentation strategy known as frequency marketing focuses on
A) trial.
B) the average number of times a person in the target audience is exposed to an advertisement.
C) consumption preferences.
D) turnover.
E) usage rate.
111) Airlines have developed frequent-flyer programs to encourage passengers to use the same
airline repeatedly. This marketing strategy is based on
A) geographic segmentation.
B) behavioral segmentation.
C) psychographic segmentation.
D) demographic segmentation.
E) buying condition segmentation.
112) Airline programs that encourage passengers to repeatedly use the same airline focus on
usage rate and employ a(n) ________ strategy.
A) rate of recurrence
B) product utilization
C) incidence
D) frequency marketing
E) consumption index
113) A study by the Aberdeen Group analyzed which segmentation bases were used by the 20
percent most profitable organizations of the 220 surveyed. Which segmentation base did these
organizations use the most?
A) behavioral
B) psychographic
C) geographic
D) demographic
E) product
114) The 80/20 rule suggests that
A) 80 percent of a firm's inventory should be readily available while 20 percent should be
reserved for emergency demand.
B) 80 percent of a firm's first-time users will become brand loyal while 20 percent will use the
product only once and then abandon it.
C) 80 percent of a firm's sales are obtained from 20 percent of its customers.
D) 80 percent of a firm's marketing program expenses are tax deductible while 20 percent are
not.
E) 80 percent of a firm's products will be sold to ultimate consumers while 20 percent to
organizational buyers.
115) The 80/20 rule is most closely related to which basis of segmentation?
A) geographic
B) psychographic
C) opportunistic
D) demographic
E) behavioral
116) Todd Harris and Associates, a New York sales promotion agency, discovered from an
analysis of its files that one-quarter (or 25 percent) of its clients generated more than three-
quarters (or 75 percent) of its fees and commissions. This is an example of what classic concept?
A) the two quarter gap
B) the 80/20 rule
C) the law of usage
D) the 75/25 exchange
E) Paget's Law
117) As an owner of a Wendy's fast-food restaurant located near a large urban university, you
need to analyze your customers and determine which segmentation base and its associated
variable(s) you will use to segment your target market. Which segmentation base and associated
variable(s) should you use?
A) psychographic: VALS and personality
B) demographic: gender and age
C) behavioral: students and nonstudents
D) geographic: city size and zip code
E) transportation mode: car, bike, public transportation, and none (walking)
