True / False Questions
1.The process of market segmentation is a three-step process that begins with planning and ends with market identification.
2.In terms of user status, discount users choose one brand exclusively.
3.In volume segmentation, marketers rely on user-status variables to define consumers as light, medium, or heavy users of products.
4.In addition to tangible benefits, customers are often motivated by symbolism—what the brand name means to them, to associates, or to some social reference group.
5.Demographic segmentation is a way to define population groups by their statistical characteristics: sex, age, ethnicity, education, occupation, income, and other quantifiable factors.
6.VALS, a psychographic classification system, assigns consumers to one of eight groups based on two dimensions: primary motivation and resources.
7.Psychographics enables marketers to view people as individuals with feelings and inclinations.
8.VALS, a psychographic segmentation scheme, divides consumers into eight psychological categories, including “I am driven” (motto: nothing ventured, nothing gained) and “I measure twice” (motto: an ounce of prevention).
9.Marketers can obtain lists of companies in particular NAICS divisions for direct mailings.
10.Market concentration reduces the number of geographic targets for an advertiser.
The Correct Answer and Explanation is :
Correct Answers:
- False
- False
- True
- True
- True
- True
- True
- False
- True
- True
Explanation:
- False – Market segmentation typically follows a four-step process: (1) identifying market segments, (2) segmenting the market, (3) targeting selected segments, and (4) positioning the product. It does not end with market identification but with positioning and strategy implementation.
- False – Discount users do not choose one brand exclusively; instead, they tend to switch brands based on promotions or discounts.
- True – Volume segmentation categorizes consumers as light, medium, or heavy users based on the frequency of their product usage. This helps brands allocate marketing resources effectively.
- True – Consumers often consider brands beyond their functional benefits. The symbolism of a brand (social status, identity, or personal values) influences purchasing decisions.
- True – Demographic segmentation is based on quantifiable characteristics like age, gender, income, and occupation, which help marketers target the right audience.
- True – VALS (Values and Lifestyles) segments consumers based on two primary factors: primary motivation (ideals, achievement, or self-expression) and resources (income, education, confidence, etc.).
- True – Psychographics goes beyond demographics, providing insights into consumers’ attitudes, interests, and lifestyles, making marketing messages more personalized.
- False – While VALS categorizes consumers into eight psychological types, it does not include segments called “I am driven” or “I measure twice.” The actual categories include Innovators, Thinkers, Believers, Achievers, Strivers, Experiencers, Makers, and Survivors.
- True – Companies can purchase lists of businesses categorized by NAICS (North American Industry Classification System) for B2B marketing or direct mail campaigns.
- True – Market concentration involves targeting a narrower market segment rather than broad coverage, reducing the number of geographic targets for advertisers.
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