Evaluating and Selecting the Market Segments - Quiz

1. The ultimate aim in segment evaluation and selection is:

Lower product quality

Serve every possible customer

Maximize company value and competitive advantage

Focus on short-term gains only

2. When segment attractiveness is evaluated, company resources must be considered because:

Competition is irrelevant

All segments are equally profitable

Not all segments fit a firm’s strengths

Price is the only concern

3. When a segment is highly price sensitive, firms should:

Consider value-added differentiation

All of the above

Prepare for lower margins

Compete on cost

4. If a company can uniquely satisfy a segment’s needs, this segment is:

A good candidate for targeting

Structurally unattractive

To be avoided

Ignored

5. The company’s own competencies and resources should be matched to:

Competitor strengths

All segments equally

Segment growth rates only

Segment opportunities

6. If a company’s brand image is weak in a segment, it should:

All of the above

Avoid the segment

Increase promotion

Consider repositioning

7. The fit between a segment and a company’s core competencies is called:

Substantiality

Differentiation

Measurability

Compatibility

8. Firms may deselect segments if:

Segment profitability is too low

All of the above

Regulatory risk is too high

Customers are hard to reach

9. When evaluating segments, “actionability” refers to:

Segment size

Industry growth

Market share

The ability to develop effective programs to attract and serve the segment

10. When segment sales are highly susceptible to price wars, it signals:

Structural unattractiveness

Differentiation

Measurability

Growth potential

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