Chapter 6 Practice Questions

A market segment profile may cover such aspects as demographic characteristics, geographic factors, product benefits sought, lifestyles, brand preferences, and usage rates.

• True

• False

A firm ordinarily uses the same sales forecasting method for determining short-range and long-range sales forecasts.

• True

• False

The ways in which customers use a particular product may be a basis for segmenting the market.

• True

• False

Family life cycle is a psychological dimension used for segmenting markets.

• True

• False

A segmentation variable is used to group smaller markets into one larger market.

• True

• False

Sales forecasts are always long-range in nature.

• True

• False

A market is a group of people who, as individuals, have needs for products in a product class and have the ability, willingness, and authority to purchase such products.

• True

• False

Demographic characteristics are commonly used to segment a market because they are closely related to consumers' product needs and purchasing behavior.

• True

• False

One problem with using personality traits for segmentation purposes is that they are difficult to measure accurately.

• True

• False

A competitive assessment may reveal that a market segment that initially seemed attractive may not be worth pursuing.

• True

• False