chapter 5
Copyright Cengage Learning. Powered by Cognero.
c. Inaccurate
d. Unacceptable to consumers
e. Overused
151. Segmentation variables are usually grouped into four categories:
a. demographic, geographic, religion, and income.
b. geopolitical, income, behavioristic, and psychographic.
c. attitudes, lifestyles, behaviors, and gender.
d. geographic, demographic, psychographic, and attitudes.
e. demographic, geographic, psychographic, and behavioristic.
152. Which of the following variables would most likely be used to segment a business market?
a. An attitude of the company’s CEO
b. The geographic location of the company
c. The lifestyle of the company’s buying agent
d. Net income generated by the company
e. Common opinions of the company’s employees
153. Kelly’s Kids is a home-based business that sells high-quality children’s clothing at premium prices using in-home
parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income.
Kelly’s Kids is using ____ variables to segment its market.
a. demographic
b. psychographic
c. sociographic
d. behavioristic
e. geographic
154. Beats by Dr. Dre (Beats), is a leading audio brand founded in 2006 by Dr. Dre and Jimmy Iovine and was acquired
by Apple Inc. in 2014. Beats has become a favorite brand among consumers who enjoy listening to music and somewhat
of a status brand. The company markets a variety of products including headphones, earphones, speakers, and accessories.
The product managers for the Beats product groups are involved in the sales forecast process for their products which is
important to ensuring strong support for retailers and customers as well as to achieve sales objectives. The product
managers hire experts create initial forecasts, submit them to the company for averaging, and have the results returned to
them so they can make individual refined forecasts. The procedure is iterative and may be repeated several times until the
experts who are working independently reach a consensus. The process typically results in a very reliable sales forecast.
What type of sales forecasting method do the product managers of Beats use?
a. Delphi technique
b. trend analysis
c. expert forecasting survey
d. executive judgment
155. In order for the marketer to achieve effective market segmentation, which of the following conditions must exist:
a. The segments must be small enough to manage effectively.
b. It must be possible to do a regression analysis on potential segments.
c. Consumers’ needs for the product must be homogeneous.
d. The firm must be able to sell effectively to the chosen segment with a specific sales price.
e. The segment must have enough profit potential to justify the development of a special marketing mix for the
segment.