schiffman03 9ed tb consumer behavior

Chapter 3: Market Segmentation

Multiple Choice Questions:

1. The more _____ there is in the marketplace, the more _____ is required.a. similarity; segmentationb. diversity; mass marketingc. diversity; segmentationd. production; targetinge. similarity; targeting

(c; Understanding, Moderate, p. 42)

2. The process of dividing a market into distinct subsets of consumers with common needs or characteristics is known as _____.a. target marketingb. market segmentationc. mass marketingd. the marketing concepte. market evaluation

(c; Fact, Moderate, p. 44)

3. The necessary conditions for successful segmentation of any market are _____.a. a small, homogeneous population with sufficient money to spendb. a large population including more than one ethnic groupc. a large population minimal expendable cash and sufficient diversity to lend itself

to partitioning the market into sizable segmentsd. a small population with sufficient money to spend covering a large geographic

areae. a large enough population with sufficient money to spend and sufficient diversity

to lend itself to partitioning the market into sizable segments(e; Fact, Moderate, p. 42)

4. When marketers provide a range of product or service choices to meet diverse consumer interests, consumers are _____.a. better satisfiedb. less satisfiedc. highly dissatisfiedd. somewhat dissatisfiede. indifferent

(a; Understanding, Moderate, p. 44)

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5. _____ means offering the same product and marketing mix to all consumers.a. Concentrated marketingb. Differentiated marketingc. Target marketingd. Mass marketinge. Market segmentation

(d; Fact, Easy, p. 44)

6. Henry Ford offered the Model T automobile to the public “in any color they wanted as long as it was black.” This is an example of _____.a. market segmentationb. mass marketingc. target marketingd. the marketing concepte. product positioning

(b; Application, Moderate, p. 44)

7. The primary advantage of mass marketing is _____.a. it costs lessb. it leads to wider customer satisfactionc. it leads to the production of products that better meet the needs of individual

segments of the marketd. it is viewed by more peoplee. it more accurately describes the product being promoted

(a; Understanding, Challenging, p. 44)

8. Which of the following types of companies would benefit from using an undifferentiated marketing strategy?a. car manufacturersb. producers of luxury goodsc. producers of agricultural productsd. watch manufacturerse. clothing companies

(c; Application, Challenging, p. 44)

9. Any marketing strategy is a three step process that includes _____.a. market segmentation, marketing mix and positioningb. market segmentation, targeting and positioningc. market targeting, positioning and repositioningd. price, place and promotione. market targeting, promotion, positioning

(b; Fact, Moderate, p. 44)

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10. Segmentation studies are used to _____.a. enhance consumer awareness for a given product or serviceb. develop and promote specialized goods and services to satisfy each group’s needsc. design and promote a single product that meets the needs of all consumers in the

marketd. gain information about competitors’ products and servicese. generate ideas for product improvements

(b; Understanding, Challenging, p. 45)

11. Another term for psychographic characteristics is ______.a. ageb. lifestylec. benefits soughtd. use-situation factorse. use-related factors

(b; Fact, Easy, p. 45)

12. When two types of market segmentation are used, it is called _____.a. combination segmentationb. hybrid segmentationc. dual segmentationd. cross segmentatione. side-by-side segmentation


13. Social class, religion, and family life cycle are bases of which of the following types of segmentation?a. sociocultural segmentationb. geographic segmentationc. use-situation segmentation d. demographic segmentatione. psychographic segmentation

(a; Fact, Easy, p. 46, Table 3.1)

14. Age, sex, and education are bases of which of the following types of segmentation?a. geographic segmentationb. sociocultural segmentationc. benefit segmentationd. demographic segmentatione. psychological segmentation

(d; Fact, Easy, p. 46, Table 3.1)

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15. Which of the following is a base of use-related segmentation?a. city sizeb. usage ratec. marital statusd. social classe. income

(b; Fact, Easy, p. 47, Table 3.1)

16. Convenience, social acceptance, long lasting, economy and value for the money are all forms of _____ segmentation.a. demographicb. benefitc. use-relatedd. psychographice. psychological

(b; Fact, Challenging, p. 47, Table 3.1)

17. Economy-minded, couch potatoes, outdoor enthusiasts and status-seekers are all forms of _____ segmentation.a. psychologicalb. psychographicc. socioculturald. demographice. use-related

(b; Understanding, Moderate, p. 46, Table 3.1)

18. African Americans, Caucasians, Asians and Hispanics are all forms of _____ segmentation.a. demographicb. geographicc. psychographicd. socioculturale. use-situation

(d; Understanding, Challenging, p. 46, table 3.1)

19. The fact that salsa outsells ketchup in the southwest, and that Jif peanut butter is preferred in the Midwest over Skippy, is an example of why _____ segmentation is used.a. demographicb. geographicc. psychographicd. socioculturale. use-related


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20. The theory behind geographic segmentation is that _____.a. people who have the same activities, interests, and objectives will purchase the

same productsb. people with the same cultural heritage will have similar needs and valuesc. people who live in the same area share some similar needs and wants that differ

from those of people living in other areasd. people who speak the same language have very similar needs and valuese. all people living in the same country will have very similar needs and can be best

served by a single advertising campaign(c; Understanding, Challenging, p. 47)

21. When a company decides to put its catalog on the Internet, it is bringing down _____ segmentation boundaries.a. demographicb. geographicc. socioculturald. psychographice. use situation


22. Campbell’s Soup has divided the domestic market into more than 20 regions, each with its own sales managers that develop specific advertising and promotional campaigns geared to local market needs and conditions. This is an example of _____.a. micromarketingb. mass marketingc. ideal targetingd. counter segmentatione. hyper-segmentation

(a; Application, Challenging, p. 48)

23. Demographics help to _____ a target market, whereas psychological and sociocultural characteristics help to _____.a. describe the values of; locate itb. understand the needs of; describe how it will react to a particular advertising

campaignc. generate new advertising campaigns for; generate new packaging for productsd. identify the benefits of a product for; whether or not that target market will

purchase the producte. locate; describe how its members think and feel

(e; Understanding, Challenging, p. 48)

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24. _____ information is often the most accessible and cost-effective way to identify a target market.a. Demographicb. Socioculturalc. Psychologicald. Physiologicale. Benefit

(a; Fact, Moderate, p. 48)

25. Trends in the markets, such as shifts in age, gender, and income distribution, are often detected through _____ information.a. demographicb. socioculturalc. psychologicald. physiologicale. use-related


26. _____ are occurrences due to chronological age, whereas _____ are occurrences due to growing up during a specific time period.a. Cohort effects; age effectsb. Cohort effects; generational effectsc. Generational effects; age effectsd. Age effects; cohort effectse. Generational effects; cohort effects

(d; Fact, Moderate, p. 49)

27. _____ stress the influence of the period when a person is born and the shared experiences with others of the same age.a. Age effectsb. Generational effectsc. Cohort effectsd. Colleague effectse. Period effects


28. The fact that people gain an interest in leisure travel and golf in their late fifties and early sixties is an example of _____.a. age effectsb. cohort effectsc. seniority effectsd. retirement necessitiese. colleague effects

(a; Application, Moderate, p. 50)

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29. Much of the change in gender roles has occurred mainly because of _____.a. single parent familiesb. dual-income householdsc. the integration of culturesd. the adoption of digital technologiese. the emergence of new marketing techniques

(b; Understanding Challenging, p. 51)

30. Traditionally, the _____ has been the focus of most marketing efforts.a. motherb. familyc. individuald. childe. teen


31. _____ is felt my many marketers to be a strong indicator of the ability to pay for a product.a. Ageb. Genderc. Occupationd. Educatione. Income

(e; Fact, Easy, p. 52-53)

32. Psychological characteristics refer to _____.a. a household’s stage in the family life cycleb. the value an individual places on his or her timec. the inner or intrinsic qualities of the individual consumerd. the marital status of the individuale. the combined income of the household

(c; Fact, Easy, p. 53)

33. If consumers are segmented based on their motivations, personality, perceptions, learning and attitudes, then a _____ segmentation approach has been implemented.a. demographicb. socioculturalc. psychologicald. psychographice. use-situation


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34. A _____ can be thought of as a composite of consumers’ measured activities, interests, and opinions.a. psychographic profileb. psychological profilec. hybrid profiled. demographic profilee. sociocultural profile

(a; Fact, Moderate, p. 53)

35. _____ research is a form of consumer research that has proven to be a valuable marketing tool that helps identify promising consumer segments that are likely to be responsive to specific marketing messages.a. Psychologicalb. Psychographicc. Socioculturald. Benefite. Demographic

(b; Understanding, Challenging, p. 53)

36. When using psychographic segmentation, AIOs are _____, _____ and _____.a. actions; interests; optionsb. activities; interests; opinionsc. activities; ideas; opinionsd. actions; ideas; optionse. actions; interests; objectives


37. The _____ is a composite variable based explicitly on marital and family status but implicitly reflects relative age, income, and employment status.a. psychographic profileb. family life cyclec. demographic profiled. psychological profilee. hybrid segment


38. _____ implies a hierarchy in which individuals in the same class generally have the same degree of status, whereas members of other classes have either higher or lower status.a. Usage rateb. Subculturec. Family life cycled. Social classe. Religion

(d; Understanding, Easy, p. 56)

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39. Segmenting on the basis of cultural heritage can be useful because members of the same culture tend to _____.a. share the same values, beliefs, and customsb. speak the same languagec. live in the same areasd. have similar incomese. be loyal to the same brands

(a; Understanding, Moderate, p. 56)

40. Use-related segmentation categorizes consumers in terms of level of usage, level of awareness, and _____.a. benefits soughtb. degree of brand loyaltyc. brand knowledged. social classe. learning-involvement


41. _____ segmentation differentiates among heavy users, medium users, light users, and nonusers of a specific product, service or brand.a. Brand awarenessb. Brand loyaltyc. Rate of usaged. Socioculturale. Benefit

(c; Fact, Easy, p. 57)

42. Research has shown that 25 to 35 percent of beer drinkers account for more than 70 percent of al beer consumed. This is an example of_____ segmentation.a. benefitb. use-relatedc. psychographicd. lifestylee. use-situation


43. In relation to rate of usage, marketers have found that _____.a. rate of consumption is fairly evenly spread across the whole populationb. teens tend to be the most reliable market segmentc. every consumer consumes roughly the same amountd. a relatively small group of heavy users accounts for a disproportionately large

percentage of product usagee. women use a greater variety of products than do men

(d; Fact, Moderate, p. 57)

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44. Whether or not consumers need to be informed about a product relates to consumers’ _____.a. awareness statusb. usage situationc. attituded. usage ratee. learning-involvement

(a; Fact, Easy, p. 57-58)

45. The greeting card industry capitalizes on occasions to sell products; this is a perfect example of_____ segmentation.a. lifestyleb. benefitc. usage situationd. demographice. geographic


46. Benefit segmentation can be used to _____.a. target different advertising campaigns to different geographic regions within a

cityb. apply the same marketing mix to the population as a wholec. reward brand-loyal consumersd. position various brands within the same product categorye. identify the needs-motivation of the consumer

(d; Understanding, Moderate, p. 61)

47. Advertising for Hefty One Zip Bags emphasize “peace of mind.” Eclipse gum stresses “fresh breath.” They are two companies trying to attract customers on the basis of _____ segmentation.a. use-relatedb. benefitc. lifestyled. socioculturale. psychological

(b; Application, Moderate, p. 61-62)

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48. The classic case of successful _____ segmentation is the market for toothpaste. If consumers are socially active, they want a toothpaste that can deliver white teeth and fresh breath; if they smoke, they want one that fights stains; if they want to prevent disease, they want one that will fight germs.a. use-relatedb. lifestylec. socioculturald. family life cyclee. benefit

(e; Application, Moderate, p. 61-62)

49. ______ profiling has been widely used in the development of advertising campaigns to answer the questions, “Whom should we target?” “What should we say?” and “Where should we say it?”a. psychographic-demographicb. geo-demographicc. socio-demographicd. VALSe. Yankelovich


50. Geodemographic segmentation is based on the notion that _____.a. people who live close to one another are likely to have similar financial means,

tastes, preferences, lifestyles, and consumption habitsb. all people have the same fundamental needsc. some characteristics of members of a certain age group are due to their

chronological age, whereas others are due to the shared experience of growing up in the same time period

d. people who live in the same area are likely to know one another very well and recommend products to each other

e. people who are of the same ethnic background tend to live in the same neighborhoods

(a; Fact, Easy, p. 64)

51. The VALS typology classifies the population into segments based on _____.a. the consumption characteristics of inner city versus suburban residentsb. the religious ideals held by different sectsc. cultural heritaged. consumer responses to attitudinal and demographic questionse. education, income, and occupation

(d; Fact, Moderate, p. 66-68)

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52. To be an effective target, a market segment should be: identifiable, sufficient, stable or growing, and _____.a. modernb. internationalc. accessibled. desirablee. objective

(c; Fact, Moderate, p. 75)

53. _____ targets several segments using individual marketing mixes, whereas _____ targets just one segment with a unique marketing mix.a. Concentrated marketing; mass marketingb. Differentiated marketing; concentrated marketingc. Mass marketing; differentiated marketingd. Differentiated marketing; mass marketinge. Concentrated marketing; differentiated marketing

(b; Understanding, Moderate, p. 77)

54. Differentiated marketing is a highly appropriate segmentation strategy for _____.a. innovative companies in new industries with few competitorsb. established companies developing new technologies in their industriesc. financially strong companies that are undisputed market leaders in their industriesd. new companies that are trying to break into the market for an existing product

category for which there is already a strong market leadere. financially strong companies that are well established in a product category and

competitive with other firms that are also strong in the category(e; Understanding, Challenging, p. 77)

55. A college that decreases the number of courses it offers as a result of under-enrollment in in-depth courses by combining those in-depth courses into one single course are engaging in _____a. mass marketingb. target marketingc. countersegmentationd. market segmentatione. microsegmentation

(e; Application, Challenging, p. 77)

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Multiple Choice Mini Cases:

MUSEUM MINI CASE: Central City Art Museum is looking to increase museum revenues by trying to draw more people to the museum. Research has shown that the most frequent users of the museum are over 55 years old, have college degrees, and have a household income of over $100,000. Less frequent users of the museum have the same education and income profile as frequent users, but tend to be younger, between 35 and 55. Surveys suggest that these younger adults would use the museum more frequently, but have do not have enough time due to the demands of their children and families. In order to increase museum entrance revenues, the administrative team wants to attract people who are likely to become heavy users of the museum when they get older, and try to bring them into the heavy user category at an earlier age. In an effort to encourage heavy museum use, the museum has begun a membership program that, for a moderate initial fee, offers discounts on museum entrance and at the gift shop, a special restaurant and lounge, and special exhibit preview events for members. The museum has also begun to offer free children’s art and museum appreciation classes on weekend afternoons that will allow younger adults to drop their children off once a week and then enjoy the museum’s exhibits and café.

56. In the MUSEUM MINI CASE, dividing museum attendees into frequent users, less frequent users, and non-users is known as _____.a. geographic segmentationb. benefit segmentationc. rate of usage segmentationd. sociocultural segmentatione. psychographic segmentation

(c; Application, Moderate, p. 57)

57. In the MUSEUM MINI CASE, rewarding frequent users of the museum through museum membership is an example of a(n) _____.a. micromarketing programb. relationship programsc. awareness drived. countersegmentation strategye. segmentation study

(b; Application, Challenging, p. 59)

58. In the MUSEUM MINI CASE, the most important differentiating factor between frequent and less frequent users is _____.a. incomeb. agec. genderd. educatione. stage of family life cycle


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59. In the MUSEUM MINI CASE, the age differences between frequent and less frequent users are most attributable to _____.a. age effectsb. geographic effectsc. demographic effectsd. cohort effectse. colleague effects


CRUISE MINI CASE: Sunshine Cruise Lines is a cruise operator that offers three- to seven-day cruises along any of five Caribbean routes. It has developed a reputation as a party cruise operator and the majority of its revenue comes from vacationing college students. Sunshine would like to scale up its reputation to attract more families and a more mature, more affluent clientele while continuing to cater to the college crowd. In order to do so, Sunshine has begun offering cruises specifically geared toward families, with babysitting services, day-time programming for younger children, and a separate games room with pool tables and ping pong to appeal to older children. Having found that a preponderance of its family passengers book through travel agents, Sunshine specifically promotes these family cruises through travel agencies that will be able to fully explain the benefits of a Sunshine cruise to potential buyers. Sunshine has also remodeled a number of its smaller ships to offer more spacious cabins with more luxurious fittings. These small “First Class Cruises,” which do not allow children, offer not only a gourmet chef, but a string quartet to serenade passengers during their evening meal and a pianist to provide background music during their evening cocktails. They are advertised in business and travel magazines and have a dedicated website for travel information and reservations.

60. In the CRUISE MINI CASE, Sunshine is trying to _____ itself as a cruise carrier for young families and affluent empty-nesters as well as for college spring breakers.a. targetb. segmentc. repositiond. microsegmente. countersegment

(c; Application, Moderate, p. 6)

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61. In the CRUISE MINI CASE, Sunshine offers different services to meet the needs of different market segments, advertising each with a different campaign and strategy. This is known as _____.a. benefit segmentationb. mass marketingc. rate of usage segmentationd. concentrated marketinge. differentiated marketing

(e; Application, Moderate, p. 76-77)

62. In the CRUISE MINI CASE, Sunshine has divided the potential market into _____ and developed two completely new cruise options to meet the vacationing needs of families and upper-class adults.a. demographic segmentsb. rate of usage segmentsc. benefit segmentsd. geographic segmentse. sociocultural segments

(e; Application, Challenging, p. 55-56)

63. In the CRUISE MINI CASE, Sunshine specifically markets its party cruises to college students in January and February in anticipation of spring break. This is an example of _____.a. usage situation segmentationb. demographic segmentationc. rate of usage segmentationd. sociocultural segmentatione. benefit segmentation


RENTAL CAR MINI CASE: Rosetta Car Rental operates car rental lots from airports nationwide. It specifically targets vacationers and advertises in travel magazines and through travel websites with a campaign that emphasizes its quality customer service and well-maintained cars. Rosetta stocks its lots based on a number of factors, including climate and the type of activities it expects its renters to be undertaking. For example, it stocks more convertible cars in its warm California lots than it does in New York. Its Colorado lots stocks a large number of station wagons, vans, and SUVs to accommodate skiers and snow-boarders and all their gear.

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64. In the RENTAL CAR MINI CASE, Rosetta exercises _____ when it stocks more convertible cars in California than in New York.a. demographic segmentationb. geographic segmentationc. sociocultural segmentationd. psychographic segmentatione. usage-situation segmentation

(b; Application, Easy, p. 47)

65. In the RENTAL CAR MINI CASE, Rosetta exercises _____ when it stocks large numbers of bigger cars in Colorado.a. demographic segmentationb. geographic segmentationc. sociocultural segmentationd. psychological segmentatione. usage-situation segmentation


66. In the RENTAL CAR MINI CASE, Rosetta focuses on vacation travelers, as opposed to business travelers. Dividing the market in this way is known as _____.a. psychographic segmentationb. geographic segmentationc. demographic segmentationd. sociocultural segmentatione. psychological segmentation


67. In the RENTAL CAR MINI CASE, by focusing on a single segment (vacationers) of the market, Rosetta is using a(n) _____.a. differentiated marketing strategyb. undifferentiated marketing strategyc. concentrated marketing strategyd. mass marketing strategye. countersegmentation strategy


True/False Questions:

68. A company that employs a mass marketing strategy typically offers a variety of specialized products.

(False; Understanding, Moderate, p. 44)

69. One advantage of segmented marketing is that it costs less in terms of advertising campaign costs and production costs of a standardized product.

(False; Understanding, Easy, p. 44)

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70. In most cases, consumers readily accept the passed-through cost increases for products that more closely satisfy their specific needs.

(True; Understanding, Challenging, p. 44)

71. Marriott operates 13 lodging brands, such as Fairfield Inn, Residence Inn, and Marriott Resorts. This is an example of Marriott adopting a mass marketing strategy.

(False; Application, Moderate, p. 45)

72. Personality and needs-motivation are bases of psychographic segmentation.(False; Fact, Challenging, p. 46, Table 3.1)

73. Climate is a base of geographic segmentation.(True; Fact, Easy, p. 46, Table 3.1)

74. By placing their catalogs on the Internet, marketers hope to overcome psychological boundaries.

(False; Fact, Moderate, p. 47)

75. Geographic characteristics are most often used as the basis for market segmentation.(False; Fact, Moderate, p. 48)

76. Demographic variables reveal ongoing trends that signal business opportunities, such as shifts in age, gender, and income distribution.

(True; Understanding, Moderate, p. 48)

77. Unlike cohort effects, age effects are ongoing and lifelong.(False; Understanding, Challenging, p. 49-50)

78. Gender roles have become more distinct and are the most effective way to distinguish consumers in most product categories.

(False; Understanding, Easy, p. 50)

79. The changes in gender roles in today’s society are largely due to the continued impact of dual-income households.


80. As a result of the continued impact of dual-income households, women are not as readily accessible through traditional media as they once were.


81. Research has shown that men and women differ in terms of the way they look at their Internet usage. While men are information hungry, women expect communications media to entertain and educate.


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82. Education, occupation, and income tend to be closely correlated.(True; Fact, Easy, p. 53)

83. Psychographic research is commonly referred to as lifestyle analysis.(True; Fact, Easy, p. 53)

84. The appeal of psychographic research lies in the frequently vivid and practical profiles of consumer segments that it can produce.

(True; Understanding, Easy, p. 53)

85. The traditional family life cycle will go through the following stages: bachelorhood, honeymooners, parenthood, post-parenthood and dissolution.

(True; Fact, Challenging, p. 55)

86. Research on subcultural differences tends to reveal that consumers are more responsive to promotional messages that they perceive relate to their own ethnicity.

(True; Fact, Moderate, p. 56)

87. It is safe to assume that if a product is successful locally it will be accepted internationally.

(False; Understanding, Challenging, p. 56)

88. Culturally distinct segments can be prospects for the same product and are often target most efficiently with the same promotional appeal.


89. Often marketers target consumers who are known to be brand switchers, in belief that such people represent greater market potential than consumers who are loyal to competing brands.


90. Consumer innovators tend to be brand loyal.(False; Fact, Challenging, p. 58-59)

91. Relationship programs reward customers who are brand loyal.(True; Understanding, Easy, p. 59)

92. Changing lifestyles play a major role in determining the product benefits that are important to consumers and provide marketers with opportunities for new products and services.


93. Psychographic and demographic profiles are highly complementary approaches that work best when used together


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94. For products and services used by a broad cross section of the public, geodemographic segmentation schemes are most productive.


95. Yankelovich Mindbase® segmentation focuses on institutional investors. (False; Fact, Moderate, p. 71)

96. Most marketers prefer to target consumer segments that are relatively stable in terms of demographic and psychological factors and needs that are likely to grow larger over time.

(True; Fact, Easy, p. 76)

97. In counter segmentation strategy, a company seeks to discover a more generic consumer need that would apply to the members of two or more segments and recombine those segments into a larger single segment that can be targeted with an individually tailored product or promotional campaign.

(True; Fact, Moderate, p. 77)

Essay Questions:

98. Describe the advantages and disadvantages of a mass marketing strategy. For what types of companies does this strategy work best?

Mass marketing is a strategy whereby a company offers one standardized product and develops only one marketing strategy and advertising campaign to sell that product to the entire population. The advantage of mass marketing is that it carries a lower cost for the company. Unfortunately, when trying to sell the same product to every prospective customer with a single advertising campaign, the marketer must portray its product as a means for satisfying a common or generic need and, therefore, often ends up appealing to no one. Nevertheless, this strategy tends to work well for producers of generic manufactured goods, like rubber bands, and for producers of agricultural products like potatoes. (Understanding, Moderate, p. 1-2)

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99. Identify and define the nine major categories of consumer characteristics that provide the most popular bases for market segmentation.

Geographic factors: divides the market by location.a. Demographic factors: divides the market by such factors as age, gender,

marital status, income, occupation, and education.b. Psychological factors: divides the market by the inner or intrinsic qualities of

the individual consumer.c. Psychographic factors: generates a composite of consumers’ measured

activities, interests, and opinions in order to segment the market.d. Sociocultural variables: divides the market on the basis sociological and

anthropological variables such as family life cycle, social class, core cultural values, and subcultural memberships.

e. Use-related characteristics: divides consumers in terms of product, service, or brand usage characteristics, such as level of usage, level of awareness, and degree of brand loyalty.

f. Use-situation factors: divides the market on the basis of the occasion or situation that determines what consumers will purchase or consume

g. Benefits sought: identifies the most important benefit of a product or service that will be most meaningful to consumers.

h. Hybrid segmentation: combinations of several segmentation bases to create rich and comprehensive profiles of particular consumer segments

(Fact, Easy, p. 4-17)

100. Explain the difference between age effects and cohort effects.

Age effects are occurrences due to chronological age, such as heightened interest in leisure travel and golf, that often occurs when people reach middle age.

Cohort effects are occurrences due to growing up during a specific period of time, such as if growing up while listening to rock and roll means you will be a rock and roll fan regardless of your age. One stresses the impact of aging while the other stresses the influence of the period when one was born.(Understanding, Moderate, p. 8)

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101. Explain how gender roles have blurred. What are marketers doing toovercome this change in roles?

Women are no longer the traditional users of cosmetics—many men are increasingly spending more money on skin care and hair products, and women are becoming an important segment in the repair tools market. The main reason behind this change in roles is due to the fact that more women are working, which has created more dual-income household that led to changing and sharing all responsibilities.

Marketers are trying to overcome the change in gender roles by changing the ways they target women, such as offering magazines like Working Woman or Working Mother, and by increasing their pressure on women to use catalogs, 800 numbers and the Internet for shopping rather than going to the mall. (Understanding, Challenging; p. 8-9)

102. Why is Family Life Cycle an important basis for segmentation?

Because many families pass through similar phases in their formation, growth and financial dissolution, at each phase the family unit needs differ.

Young singles going through the bachelorhood stage will need basic furniture for their apartments, and a small, inexpensive vehicle to start them off. Once singles get married and move into the honeymooners stage, their focus becomes buying a new home and furnishing it, then when they become parents, the majority of their disposable income will be spent on their children’s needs. (Understanding Moderate, p. 12-13)

103. How is brand loyalty used as a basis for segmentation?

Marketers try to identify the characteristics of their brand loyal customers so that they can direct their promotional efforts to people with similar characteristics in larger populations. They try to increase their loyalty by offering them types of relationship programs which reward them for being continuous users of the product or service.(Application, Moderate; p. 15-16)

104. Identify and discuss the five strategic brand benefits that facilitate benefit segmentation.

a. Functional benefits (quality)b. Value for moneyc. Social benefitd. Positive emotional benefitse. Negative emotional benefits

(Fact, Challenging, p. 17)

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105. Describe the VALS typology. How does it segment the population?

The VALS typology classifies the population into 8 distinctive segments based on consumer responses to attitudinal and demographic questions. The system identifies three primary motivations: the ideals motivated, the achievement motivated, and the self-expression motivated. Each of these three major self-motivations represents distinct attitudes, lifestyles, and decision-making styles.(Understanding, Challenging, p. 20)

106. Identify and discuss the four criteria that make market segments effective targets.

To be an effective target, a market segment should be:a. identifiable.b. sufficient, in terms of size.c. stable or growing.d. accessible in terms of both media and cost.

(Understanding, Moderate, p. 21)

107. What is countersegmentation?

Counter segmentation occurs when companies find that some segments have contracted over time to the point that they do not warrant an individually designed marketing program. In this case a company will seek to discover a more generic need that would apply to two or more segments and recombine those segments into a larger segment that would be targeted with one promotional campaign. (Fact, Moderate; p. 23)

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schiffman03 9ed tb consumer behavior

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