TOP 10 Learning Questions for

Chapter 8:Identifying Market Segments and

Targets

Alvin TsoiSeptember 24, 2010

1. The _____ measures the loyalty of users to a certain brand and their tendency to switch brands

A. Segmentation processB. Patterns of Target Market SelectionC. Brand FunnelD. Conversion ModelE. Loyalty Status

2

The conversion model measures the strength of consumer’s psychological commitment to brands and their openness to change.

Target Market

Unaware Aware

Not Tried

Negative Opinion

Neutral

Favorable Opinion

Tried

Rejector Not Yet Repeated Repeated

Loyal to other brand

Switcher Loyal to brand

Light user

Regular user

Heavy user

1. The _____ measures the loyalty of users to a certain brand and their tendency to switch brands

A. Segmentation processB. Patterns of Target Market SelectionC. Brand FunnelD. Conversion ModelE. Loyalty Status

5

2. _____ is not an effective segmentation criteria

A. MeasurableB. SubstantialC. TimelyD. AccessibleE. DifferentiableF. Actionable

6

When segmenting the market, the criteria must be relevant and useful. Criteria must be measurable, substantial, accessible, differentiable and actionable.

2. _____ is not an effective segmentation criteria

A. MeasurableB. SubstantialC. TimelyD. AccessibleE. DifferentiableF. Actionable

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3. These are the levels of Micromarketing except

A. SegmentsB. LoyaltyC. NichesD. Local AreasE. Individuals

9

Mass marketing is dying. A uniform approach for all consumers is not as effective as it used to be. Micromarketing is a more directed and accurate way of marketing.

3. These are the levels of Micromarketing except

A. SegmentsB. LoyaltyC. NichesD. Local AreasE. Individuals

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4. These are the decision roles in behavioral segmentation except

A. InitiatorB. InfluencerC. DeciderD. BuyerE. TesterF. User

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Different people are playing different roles, but all are crucial in the decision process and ultimate consumer satisfaction.

4. These are the decision roles in behavioral segmentation except

A. InitiatorB. InfluencerC. DeciderD. BuyerE. TesterF. User

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5. Which of the following is true?

A. There are 3 behavioral variablesB. There are 4 behavioral variables C. There are 5 behavioral variablesD. There are 6 behavioral variablesE. There are 7 behavioral variables

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Behavioral variables are the best starting points for constructing market segments. There are 7 behavioral variables:

1. Occasions2. Benefits3. User status4. Buyer Readiness5. Loyalty status6. Usage rate7. Attitude

Occasions – Based on time e.x. holidaysBenefits – Based on benefits gained from the

productUser status – Nonusers, ex-users, potential

users etcUsage rate – Rate of consumption of the

productBuyer readiness – Characterized by the brand

funnelLoyal status – Based on the degree to which a

consumer will switch brandsAttitude – Outlook towards the product

Combining different behavioral bases can help provide a more complete view of the market.

5. Which of the following is true?

A. There are 3 behavioral variablesB. There are 4 behavioral variables C. There are 5 behavioral variablesD. There are 6 behavioral variablesE. There are 7 behavioral variables

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6. Which of the following is true?

A. Shifting loyals are at the bottom of the Loyalty pyramid

B. Switchers are at the bottom of the Loyalty pyramid

C. Hard Core are at the bottom of the Loyalty pyramid

D. Split loyals are at the bottom of the Loyalty pyramid

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Loyalty status is a behavioral variable that defines the loyalty of a consumer to a product.

Hard core loyals – buy one brand all the time

Split loyals – loyal to two or three brands

Shifting loyals – shift loyalty from one brand to another

Switchers – No loyalty to any brand

6. Which of the following is true?

A. Shifting loyals are at the bottom of the Loyalty pyramid

B. Switchers are at the bottom of the Loyalty pyramid

C. Hard Core are at the bottom of the Loyalty pyramid

D. Split loyals are at the bottom of the Loyalty pyramid

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7. A consumer unswayed prices and competition is an example of

1. Shifting loyals2. Split loyals3. Hard core4. Switchers

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Hard core loyals – buy one brand all the time

Split loyals – loyal to two or three brands

Shifting loyals – shift loyalty from one brand to another

Switchers – No loyalty to any brand

7. A consumer unswayed prices and competition is an example of

1. Shifting loyals2. Split loyals3. Hard core4. Switchers

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8. Salary is a this type of segmentation

A. GeographicB. DemographicC. PsychographicD. Behavioral

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In demographic segmentation, we divide the market into groups of variables. They are easy to:

1. associate with needs and wants

2. measure

Demographic segmentation1. Age cycle2. Life stage3. Gender4. Salary5. Generation6. Social class

8. Salary is a this type of segmentation

A. GeographicB. DemographicC. PsychographicD. Behavioral

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9. A friend who has a treadmill is a _____ to a husband who plans to buy a treadmill for his wife

A. InitiatorB. InfluencerC. DeciderD. BuyerE. User

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People play 5 roles in a buying decision:1. Initiator2. Influencer3. Decider4. Buyer5. User

9. A mother dictating the shampoo to be used by the child is a(an)

A. InitiatorB. InfluencerC. DeciderD. BuyerE. User

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10. Determining the population size is a type of segmentation criteria

A. MeasurableB. SubstantialC. AccessibleD. DifferentiableE. Actionable

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Effective segmentation criteria:1. Measurable2. Substantial3. Accessible4. Differentiable5. Actionable

Measurable – Size, purchasing power and characteristics of the segment can be measured

Substantial – Large and profitable enough to serve

Accessible – Effectively reached and served

Differentiable – Conceptually distinguishable

Actionable – Effective programs can be formulated

10. Determining the population size is a type of segmentation criteria

A. MeasurableB. SubstantialC. AccessibleD. DifferentiableE. Actionable

37

TOP 10 Learning Questions for

Chapter 8:Identifying Market Segments and

Targets

Alvin TsoiSeptember 24, 2010