Chapter 03 – Strategic Market Segmentation
Chapter 03
Strategic Market Segmentation
1. Market segmentation involves choosing market targets and positioning against alternatives
to build competitive advantage.
2. Strategic segmentation is concerned with consumer lifestyles and the benefits that different
types of consumers seek in choosing and purchasing consumer electronics.
3. Operational segmentation issues are concerned with delivering relevant messages to targets,
and supporting the segmentation strategy at store level.
4. The term “market niche” refers to the largest segment of buyers in a specific market.
5. Market targeting consists of selecting one or more segments whose value requirements
provide a good match with the organization’s capabilities.
6. Segmentation is employed by first choosing a segment randomly.
7. Market segmentation lays the groundwork for market targeting and positioning strategies.
8. The use situation variables describe brand-use and consumption.
Chapter 03 – Strategic Market Segmentation
9. Demographics are often more useful to describe consumer segments after they have been
formed rather than to identify them.
10. Market concentration determines the extent to which the supplier must tailor the product
to each organizational buyer.
11. The differences in buyers according to how they use products, the needs and preferences
that the products satisfy, and their consumption patterns create market _____.
A. segments
B. futures
C. shares
D. structures
12. _____ is the process of identifying and analyzing sub-groups of buyers in a product-
market with similar response characteristics.
A. Flighting
B. Benchmarking
C. Market segmentation
D. Product differentiation
13. _____segmentation links to the management vision and crucial intent of corporate action
plan, and emphasizes product benefits that different types of buyers seek.
A. Managerial
B. Strategic
C. Operational
D. Advertising-oriented
14. _____ segmentation is concerned with allocating resources around segment targets,
including them in marketing plans, and aligning organizational processes around them.
A. Strategic
B. Network
C. Operational
Chapter 03 – Strategic Market Segmentation
D. Managerial
15. _____ issues are concerned with the marketing program changes needed to reach segment
targets with advertising, promotions, and distribution systems.
A. Strategic segmentation
B. Managerial segmentation
C. Operational segmentation
D. Audience management
16. _____ consists of evaluating and selecting one or more segments whose value
requirements provide a good match with the organization’s capabilities.
A. Strategic segmentation
B. Managerial segmentation
C. Audience management
D. Market targeting
17. _____ variables consider how the buyer utilizes the product, such as purchasing a meal
away from home for the purpose of entertainment.
A. Use situation
B. Buyers’ needs and preferences
C. Demographic
D. Purchase-behavior
18. Which of the following segmentation variables include brand awareness?
A. Use situation variables
B. Buyers’ needs and preferences variables
C. Demographic variables
D. Purchase-behavior variables
19. Which of the following segmentation variables describe brand-use and consumption?
A. Use situation variables
Chapter 03 – Strategic Market Segmentation
B. Buyers’ needs and preferences variables
C. Demographic variables
D. Purchase-behavior variables
20. The ______ variables divide a market into segments according to the buyers’ age, income,
education, and other such characteristics.
A. use situation
B. buyers’ needs and preferences
C. demographic
D. purchase-behavior
21. ______ include attitudes and brand awareness.
A. Use situation variables
B. Buyers’ needs and preferences variables
C. Demographic variables
D. Purchase-behavior variables
22. Which of the following is a use situation variable?
A. Lifestyle of buyers
B. Brand loyalty status
C. Prior experience with product
D. Frequency of purchase
23. Which of the following is a segmentation variable measuring buyers’ needs and
preferences?
A. Quality of the product
B. Importance of purchase
C. Geographic location of buyers
D. Size of purchase
24. _____ occurs when two competing goods are seen as varying on any physical or
Chapter 03 – Strategic Market Segmentation
nonphysical characteristics, including price.
A. Benchmarking
B. Flighting
C. Lifestyle segmentation
D. Product differentiation
25. Which of the following types of segmentations of customer groups would be characterized
as a response difference?
A. Frequency of purchase
B. Income
C. Industrial sector
D. Age
26. _____ see global brands as quality products and accept the cultural symbols they provide,
and are less concerned with social responsibility issues.
A. Global dreamers
B. Antiglobals
C. Global citizens
D. Global agnostics
27. Which of the following segment of consumers do not base purchase decisions on a
brand’s global attributes, and judge them on the same criteria they use for local brands?
A. Global Citizens
B. Global Dreamers
C. Antiglobals
D. Global Agnostics
28. _____ groups people according to the similarity of their answers to questions such as
brand preferences or product attributes.
A. Perceptual maps
B. Cluster analysis
C. Linear discriminant analysis
D. Factor analysis
Chapter 03 – Strategic Market Segmentation
29. Which of the following forms of segmentation seeks to identify narrowly defined
segments using one or more of the segmentation variables?
A. Mass customization
B. Variety-seeking strategy
C. Microsegmentation
D. Specialized division
30. The _____ strategy follows the logic that buyers who are offered alternatives may increase
their total purchases of a brand.
A. variety-seeking
B. mass customization
C. microsegmentation
D. macrosegmentation
31. Explain the goal of strategic marketing segmentation.
32. What is market segmentation?
33. Explain target marketing.
Chapter 03 – Strategic Market Segmentation
34. Explain the activities and decisions in market segmentation.
35. List the segmentation variables.