midterm questions

TOP 10 Learning Questions for

(Chapter 8- Identifying Market Segments and

Targets)

Nailah P. CristobalDecember 16, 2011

Marketing Management Class of Prof. Remigio Joseph De Ungria

http://nailah08.blogspot.comColorful Me

1. A ______ is a more narrowly defined customer group

seeking a distinctive mix of benefits.

A. SegmentB. Local AreaC. PlaceD. NicheE. Individual

2http://nailah08.blogspot.com

Four Levels of Micromarketing

3

Segments

Local Areas

Niches

Individuals

http://nailah08.blogspot.com

What does an attractive niche look like?

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• fairly small but has size, profit, and growth potential

• unlikely to attract many other competitors

• gains certain economies through specialization


1. A ______ is a more narrowly defined customer group

seeking a distinctive mix of benefits.

A. SegmentB. Local AreaC. PlaceD. NicheE. Individual


2. Which is not a part of segmenting consumer

markets?

A. BehavioralB. GeographicC. PsychographicD. DemographicE. Cultural


Segmenting Consumer Markets

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Geographic

Demographic

Psychographic

Behavioral


Segmenting Consumer Markets

8

Geographic

Demographic

Psychographic

Behavioral

divide the market intogeographical units such as nations

states, regions, countries, cities


divide the market into variables such as age and life cycle,life stage, gender, income,

generation, social class

divide the market into groupson the basis of psychological/

personality traits, lifestyle,or values

divide the market on the basisof their knowledge, attitude &

response to a product

2. Which is not a part of segmenting consumer

markets?

A. BehavioralB. GeographicC. PsychographicD. DemographicE. Cultural


3. How many roles do people play in a buying decision?

A. FourB. FiveC. SixD. ThreeE. Two


Behavioral Segmentation

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5 Decision Roles

• Initiator

• Influencer

• Decider

• Buyer

• User

Behavioral Variables

• Occasions

• Benefits

• User Status

• Usage Rate

• Buyer Readiness

• Loyalty Status

• Attitude


Decision Roles

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5 Decision Roles

• Initiator

• Influencer

• Decider

• Buyer

• User

Assume a wife initiates a request that she wants a new macbook on her birthday. The husband may then seek advice from his best friend who has a macbook and is a key influencer in what models to consider. After presenting the alternative choices to his wife , he then purchases her preferred model which, as it turns out, ends up being used by the entire family .


3. How many roles do people play in a buying decision?

A. FourB. FiveC. SixD. ThreeE. Two


4. ___________ are consumers who buy only one brand all the time.

A. Split LoyalsB. SwitchersC. Hard-core LoyalsD. Shifting LoyalsE. Loyalists


Loyalty Status

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Hard-coreLoyals

Split Loyals

Shifting Loyals

Switchers


4 Groups based on Loyalty Status

Hard-core loyals-Consumers who buy only one brand all the time.

Split loyals-Consumers who are loyal to two or three brands.

Shifting loyals-Consumers who shift loyalty from one brand to another.

Switchers-Consumers who show no loyalty to any brand.


4. ___________ are consumers who buy only one brand all the time.

A. Split LoyalsB. SwitchersC. Hard-core LoyalsD. Shifting LoyalsE. Loyalists


5. Which statement is false?

A. The size, purchasing power, and characteristics of the segments can be measured.

B. The segments are small and profitable enough to serve.

C. The segments can be effectively reached and served.

D. The segments are conceptually distinguishable.

E. Effective programs can be formulated for attracting and serving the segments.


Effective Segmentation Criteria

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Measurable

Substantial

Accessible

Differentiable


Actionable

Effective Segmentation Criteria

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Measurable

Substantial

Accessible

Differentiable


Actionable

• size, purchasing power & characteristics can be measured

• should be large and profitable enough to serve

• can be effectively reached and served

• can be distinguishable and responsive to marketing mix

• Should formulate effective programs to attract and serve

5. Which statement is false?

A. The size, purchasing power, and characteristics of the segments can be measured.

B. The segments are small and profitable enough to serve.

C. The segments can be effectively reached and served.

D. The segments are conceptually distinguishable.

E. Effective programs can be formulated for attracting and serving the segments. 21http://nailah08.blogspot.com

6. The ____________ Model measures the strength of consumers' psychological commitment to brands and their openness to change.

A. AdaptationB. InnovationC. ConversionD. ModificationE. Qualification


The Conversion Model

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Convertible Shallow Average


Entrenched

Users Non-Users

Strongly Unavailable

Weakly Unavailable Ambivalent Available


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Convertible

Shallow

Average


Entrenched

• most likely to defect

• uncommitted to the brand and could switch

• committed to the brand and unlikely to switch (short term)

• highly unlikely to switch in foreseeable future

6. The ____________ Model measures the strength of consumers' psychological commitment to brands and their openness to change.

A. AdaptationB. InnovationC. ConversionD. ModificationE. Qualification


7. __________ determines which demographics, lifestyles, and usage behaviors make the segment distinct.

A. Segment IdentificationB. Segment AttractivenessC. Segment ProfitabilityD. Segment PositioningE. Segment “Acid Test”


Steps in Segmentation Process


Needs-based Segmentation

Segment Identification

Segment Attractiveness

Segment Profitability

Segment Positioning

Segment Acid Test

For each needs-based segment, determine which demographics, lifestyles, and usage behaviors make the segment distinct and identifiable (actionable) .


Segment Identification

7. __________ determines which demographics, lifestyles, and usage behaviors make the segment distinct.

A. Segment IdentificationB. Segment AttractivenessC. Segment ProfitabilityD. Segment PositioningE. Segment “Acid Test”


8. To what particular segment does this question relate to, “What geographical area should we serve?”

A. Operating VariableB. Purchasing ApproachesC. Personal CharacteristicsD. DemographicE. Situational Factors


Segmenting for Business Markets

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Demographic

Operating Variable

Purchasing Approaches

Situational Factors


Personal Characteristics

Segmenting for Business Markets

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Demographic


1. Industry: Which industries should we serve? 2. Company size: What size companies should we serve? 3. Location-What geographical areas should we serve?

8. To what particular segment does this question relate to, “What geographical area should we serve?”

A. Operating VariableB. Purchasing ApproachesC. Personal CharacteristicsD. DemographicE. Situational Factors


9. ________ can be defined in terms of the time of day, week, month, year, or in terms of other well-defined temporal aspects of a consumer's life.

A. OccasionsB. BenefitsC. User StatusD. Usage RateE. Buyer- Readiness



35

5 Decision Roles

• Initiator

• Influencer

• Decider

• Buyer

• User

Behavioral Variables

• Occasions

• Benefits

• User Status

• Usage Rate

• Buyer Readiness

• Loyalty Status

• Attitude



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During the 1960’s-70’s, cranberry was just consumed as a side-dish during thanksgiving. Because of pesticide scare, growers thought of a way to diversify and create a year round market by producing cranberry juice.

Behavioral Variable

• Occasions


9. ________ can be defined in terms of the time of day, week, month, year, or in terms of other well-defined temporal aspects of a consumer's life.

A. OccasionsB. BenefitsC. User StatusD. Usage RateE. Buyer- Readiness


10. What type of non-users are most likely to be acquired based on the Conversion Model?

A. Strongly UnavailableB. Weakly UnavailableC. AmbivalentD. UnavailableE. Available



39

Convertible Shallow Average


Entrenched

Users Non-Users

Strongly Unavailable

Weakly Unavailable Ambivalent Available

Non Users

Strongly unavailable (unlikely to switch to the brand-their preference lies strongly with their current brands)

Weakly unavailable (not available to the brand because their preference lies with their current brand, although not strongly)

Ambivalent (as attracted to the brand as they are to their current brands)

Available (most likely to be acquired in the short run)


10. What type of non-users are most likely to be acquired in the short-run based on the Conversion Model?

A. Strongly UnavailableB. Weakly UnavailableC. AmbivalentD. UnavailableE. Available


TOP 10 Learning Questions for

(Chapter 8- Identifying Market Segments and

Targets)

Nailah P. CristobalDecember 16, 2011

Marketing Management Class of Prof. Remigio Joseph De Ungria

http://nailah08.blogspot.comColorful Me

midterm questions

Business

individual http

qualification http

split loyalsconsumers

characteristics ofthe

request5 decision roles

buying decision

loyalty fromone brand

loyalty toany brand