1. 17136C Understanging Buyers Ch.02 Market segmentation and the marketing environment Section A:True or False

2. 1.The marketing environment includes only factors over which the business has total control. Answer: Fpage 34 2.Technology has one of the largest influences on consumer behaviour. Answer: Tpage 34 3.Most people only pretend to desire healthier lifestyles, so marketers don’t really have to consider healthy options. Answer: Fpage 35 4.Internet shopping is a growing area mainly because people love computers. Answer: Fpage 37 5.The changing role of women in society has led to advertising campaigns such as Sportscraft featuring Matt Welsh promoting the brand. Answer: Fpage 41

3. 6.A geodemographic profile is a demographic description of people living in a specific geographic locality. Answer: Tpage 43 7.Market aggregation is preferred by marketers because it is easier than developing different products for different segments. Answer: Fpage 47 8.Effective segmentation requires segments be measurable, accessible and large enough to be profitable. Answer: Tpage 48 9.Segmentation is not always the best answer to meeting businesses’ and customers’ needs. Answer: Tpage 49 10. Customer type and size is a commonly used method of segmenting business markets. Answer: Tpage 52

4. 17136C Understanging Buyers Ch.02 Market segmentation and the marketing environment Section B:Multiple Choice

5. Question 1 In the context of consumer behaviour, ‘value’ refers to: a) How much the product or service costs b) How well a consumer’s needs are satisfied c) How expensive the packaging looks d) How easy it is to get the product or service Answer: Bpage 33 Question 2 In the marketing environment, social/cultural forces include: a) Healthy lifestyles, computers and household consumption b) Time poor consumers, changing gender roles and environmental issues c) Local competition, time poor consumers and healthy lifestyles d) Employment, changing gender roles and household composition Answer: Bpage 34

6. Question 3 McDonald’s Salads Plus menu was launched in response to which changing environmental factor? a) Healthy life styles b) Time poor consumers c) Increased competition d) Demographics Answer: Apage 35 Question 4 The growth of sports marketing is a response to which changing environmental factor? a) Changing gender roles b) Time poor consumers c) Demographics d) Healthy life styles Answer: Dpage 35

7. Question 5 Food available at the 2004 Royal Easter Show included Indian, stir fry noodles and Nachos. This is a response to: a) Health issues, increased incomes and government policies b) Health issues, competition and environmental issues c) Health issues, multiculturalism and broadening of people’s tastes d) Health issues, changing gender roles and multiculturalism Answer: Cpage 37 Question 6 Many white-goods brands such as Westinghouse target their appliances at: a) Time poor consumers b) Consumers with increasing incomes c) Consumers with larger families d) Everybody Answer: Apage 37

8. Question 7 The rising divorce rate in Australia has led to marketing opportunities such as: a) Low cost products b) McCain Healthy Choice Meals c) Socks d) King size bed sheets Answer: Bpage 38 Question 8 The sponsorship of the Ballarat Drag Racing Club by AutoPro, an automotive parts retailer, is an example of: a) A waste of money b) Establishing credibility in a hard-to-reach market c) The owner using the business’ money to support his hobby d) Standard marketing for Victorian businesses Answer: Bpage 40

9. Question 9 Segmentation: a) Increases marketing costs b) Allows marketers to better satisfy needs c) Can be chosen by small firms due to time and resource constraints d) All of the above Answer: Dpage 41 Question 10 The labelling claim on food ‘organically grown’ is a response to: a) Mass hysteria about genetically modified food b) Social conditions in rural areas c) Environmental and healthy lifestyle factors d) Increasing education levels of consumers Answer: Cpages 35 & 40

10. Question 11 Effective segmentation should be: a) Measurable b) Accessible c) Large enough to be profitable d) All of the above Answer: Dpage 48 Question 12 When US-made electrical products are sold in Australia, they are sold with a different type of plug. This is an example of: a) Geographic segmentation b) Psychographic segmentation c) Demographic segmentation d) Gender based segmentation Answer: Apage 41

11. Question 13 Ethnic background is a part of: a) Geographic segmentation b) Social/cultural segmentation c) Demographic segmentation d) Psychographic segmentation Answer: Cpage 42 Question 14 Psychographic segmentation divides the market into groups based on: a) Lifestyle b) Mental health c) Income d) Age Answer: Apage 42

12. Question 15 The new brands of cat food claiming to be ‘gourmet’ pet food are using which type of segmentation? a) Psychographic segmentation b) Social/cultural segmentation c) Demographic segmentation d) Product-related segmentation Answer: Dpage 42 Question 16 A psychographic profile is developed by considering: a) Attitudes and interests b) Interests and opinions c) Opinions and attitudes d) All of the above Answer: Dpage 42

13. Question 17 In order to conduct benefit segmentation, a firm must: a) Identify the customer description b) Identify the particular benefit the customer looks for c) Identify the point of differentiation of close competitors d) Identify a benefit that sounds reasonable Answer: Bpage 43 Question 18 Differentiation means: a) Making your packaging black if all competitors’ packs are white or coloured b) Giving your product a unique or distinct identity c) Creating a marketing mix so that customers can see a clear benefit d) All of the above Answer: Dpage 46

14. Question 19 A market aggregation strategy is most appropriate when: a) The marketers can’t think of a way of segmenting the market b) The business can’t be bothered to spend the extra dollars to make different product versions c) A large percentage of customers have similar perceptions about the product in the market d) A large percentage of customers have the same age and income descriptions Answer: Cpages 46-47 Question 20 Chocorama uses market aggregation because it: a) Has a single range of chocolates b) Has a single promotion, distribution, pricing and product mix c) Targets only special people d) Targets only one of the various segments they have identified Answer: Bpage 47

15. Question 21 The question ‘What business is the company really in?’ is asked when: a) Completing the census forms b) Filling out GST returns c) Approaching segmentation d) Designing distribution Answer: Cpage 47 Question 22 Johnson and Johnson’s brand ‘Clean and Clear’ range of skin care products is an example of: a) Segmentation b) Aggregation c) Differentiation d) Assimilation Answer: Apage 49

16. Question 23 A major limitation of segmentation is: a) It can confuse the market b) It can be expensive c) It might not work d) If one competitor starts, everyone else follows Answer: Bpage 49 Question 24 Business segmentation: a) Doesn’t happen b) Uses the same bases as consumer segmentation c) Can use geographic and customer type as segmentation bases d) Always happens Answer: Cpage 49

17. Question 25 The broad objectives of sports marketing are: a) To segment the market as much as possible and make money b) Get everyone to watch sport and buy sports drinks c) Make the Australian people more health conscious and active d) Raise corporate image, increase brand awareness and create media efficiency Answer: Dpage 39