Market segmentation is best described as:
A) Dividing a market into distinct groups of buyers
B) Combining all buyers into one market
C) Increasing product prices
D) Ignoring customer differences
Answer: A

The main purpose of segmentation is to:
A) Identify high growth sectors
B) Identify and satisfy customer needs more precisely
C) Reduce marketing costs
D) Maximize production efficiency
Answer: B

Which of the following is NOT a common basis for consumer market segmentation?
A) Geographic
B) Demographic
C) Psychographic
D) Product cost
Answer: D

Dividing a market based on variables such as age, gender, and income is known as:
A) Geographic segmentation
B) Behavioral segmentation
C) Demographic segmentation
D) Technographic segmentation
Answer: C

Segmenting a market based on social class and lifestyle is:
A) Psychographic segmentation
B) Geographic segmentation
C) Demographic segmentation
D) Usage segmentation
Answer: A

Usage rate segmentation divides buyers based on:
A) How often they buy or use a product
B) Their geographic location
C) Product features preferred
D) Their gender
Answer: A

Business markets can be segmented by all EXCEPT:
A) Industry
B) Company size
C) Buyer’s age
D) Purchasing approach
Answer: C

Benefit segmentation groups buyers by:
A) Benefits they seek from the product
B) Brand loyalty
C) Frequency of purchase
D) Price sensitivity
Answer: A

Behavioral segmentation includes variables such as:
A) Occasions, usage rate, loyalty status
B) Age and gender
C) Climate and region
D) Product form
Answer: A

A segment must be _______ to be attractive.
A) Accessible
B) Substantial
C) Measurable
D) All of the above
Answer: D

A target market is:
A) The largest segment
B) The segment(s) a company chooses to serve
C) The entire market
D) The highest-priced segment
Answer: B

Undifferentiated marketing is also called:
A) Mass marketing
B) Niche marketing
C) Micro marketing
D) Concentrated marketing
Answer: A

Concentrated marketing focuses on:
A) One or a few segments only
B) The entire market
C) All possible segments
D) No segmentation
Answer: A

Differentiated marketing targets:
A) Only one market segment
B) Multiple segments with different offers
C) All buyers with the same product
D) Local markets only
Answer: B

Niche marketing is most suitable for:
A) Large firms only
B) Small, specialized segments
C) Government buyers
D) Only online markets
Answer: B

The process of evaluating each market segment’s attractiveness is:
A) Segmentation
B) Targeting
C) Positioning
D) Differentiation
Answer: B

The process of creating a distinct image for a product in the mind of the target market is:
A) Positioning
B) Targeting
C) Segmentation
D) Prospecting
Answer: A

A good market segment is:
A) Homogeneous within
B) Heterogeneous between
C) Both A and B
D) None of the above
Answer: C

Which of the following is a requirement for effective segmentation?
A) Actionability
B) Measurability
C) Substantiality
D) All of the above
Answer: D

Geographic segmentation includes:
A) Age and occupation
B) Region, city size, density, climate
C) Loyalty status
D) Psychographics
Answer: B

The process of dividing buyers into groups that differ in their needs or behaviors is:
A) Segmentation
B) Differentiation
C) Targeting
D) Positioning
Answer: A

Loyalty status is a variable used in:
A) Demographic segmentation
B) Geographic segmentation
C) Behavioral segmentation
D) Product segmentation
Answer: C

When a marketer creates unique products for each segment, it is called:
A) Differentiated marketing
B) Mass marketing
C) Undifferentiated marketing
D) Indirect marketing
Answer: A

The most basic variable in geographic segmentation is:
A) Age
B) Gender
C) Location
D) Usage rate
Answer: C

Income segmentation is especially relevant for:
A) Durable goods
B) Luxury products
C) Services only
D) Non-profit organizations
Answer: B

Occasion segmentation is based on:
A) The time or event when a product is purchased or consumed
B) Income
C) Personality
D) Brand loyalty
Answer: A

Market segments should be:
A) Measurable, substantial, accessible, differentiable, actionable
B) Large and undifferentiated
C) Homogeneous with the overall market
D) Inaccessible
Answer: A

Which of the following is NOT an advantage of market segmentation?
A) Tailored marketing mixes
B) More precise targeting
C) Increased marketing waste
D) Better resource allocation
Answer: C

Multi-segment targeting refers to:
A) Targeting multiple segments with different marketing mixes
B) Focusing on one segment
C) No targeting
D) Ignoring customer needs
Answer: A

What does “actionable” mean in the context of segmentation?
A) The segment can be reached and served effectively
B) The segment is profitable
C) The segment is small
D) The segment is undifferentiated
Answer: A

Which segmentation variable is most associated with dividing the market by buyer’s personalities or values?
A) Behavioral
B) Demographic
C) Psychographic
D) Geographic
Answer: C

A “segment profile” includes:
A) Detailed description of the segment’s characteristics
B) Product specifications
C) Only demographic information
D) Competitor analysis
Answer: A

Market targeting is the process of:
A) Dividing the total market
B) Selecting one or more segments to enter
C) Positioning the product
D) Conducting market research
Answer: B

Segmenting by “loyalty status” helps companies:
A) Reward loyal customers
B) Target switchers
C) Develop retention programs
D) All of the above
Answer: D

The largest segment is not always the most attractive because:
A) It may have strong competition
B) It may not align with company strengths
C) Profitability may be lower
D) All of the above
Answer: D

Intermarket segmentation refers to:
A) Segments within a single country
B) Forming segments of customers with similar needs across countries
C) Targeting unrelated segments
D) Ignoring global markets
Answer: B

The process of making a product different from competitors’ products is:
A) Differentiation
B) Positioning
C) Segmentation
D) Prospecting
Answer: A

In business markets, segmentation by “purchasing approach” might include:
A) Centralized versus decentralized buying
B) Personal income
C) Brand personality
D) Product end use
Answer: A

Psychographic segmentation can be especially useful for:
A) Identifying lifestyle and attitude-based segments
B) Determining city size
C) Measuring product usage
D) Calculating income
Answer: A

Segmentation bases can be combined in practice to create:
A) One large segment
B) More precise and meaningful segments
C) Only geographic segments
D) Unmeasurable segments
Answer: B

Which is NOT a reason to avoid a particular segment?
A) Segment is too small
B) Segment cannot be reached efficiently
C) Segment aligns perfectly with company strengths
D) Segment is unprofitable
Answer: C

Which is a key step before selecting target markets?
A) Segment the market
B) Develop a new logo
C) Set product prices
D) Increase advertising
Answer: A

An attractive segment should have:
A) High growth and profitability
B) Strong competitors
C) Little consumer interest
D) High entry barriers
Answer: A

Mass customization allows firms to:
A) Offer tailored products to individual customers
B) Ignore market segments
C) Lower product quality
D) Increase production costs
Answer: A

When a company customizes its product for local markets, it is using:
A) Local marketing
B) Mass marketing
C) Niche marketing
D) Undifferentiated marketing
Answer: A

Targeting individuals based on their web browsing behavior is an example of:
A) Geographic segmentation
B) Behavioral segmentation
C) Demographic segmentation
D) Psychographic segmentation
Answer: B

When evaluating segments, firms should consider:
A) Segment size and growth
B) Segment structural attractiveness
C) Company objectives and resources
D) All of the above
Answer: D

Micro marketing focuses on:
A) Targeting very small, well-defined segments or individuals
B) All customers in a country
C) The largest possible audience
D) Ignoring customer needs
Answer: A

Which strategy targets a market segment that has been overlooked by competitors?
A) Niche marketing
B) Mass marketing
C) Differentiated marketing
D) Undifferentiated marketing
Answer: A

An ideal segment is:
A) Accessible, substantial, differentiable, measurable, and actionable
B) Small and unreachable
C) Based only on geography
D) Not profitable
Answer: A