Marketing Objective 1.05 Worksheet - Market Identification

The customer characteristic that reflects where customers fit in the day-to-day buying routine is known as

• life stage

• personal belief.

• socioeconomic status.

• origin or heritage.

Answer explanation

Life stage. Though socioeconomic status, origin/heritage, and personal belief all affect customer purchases, it is life stage (where the customer is in his or her life) that deter-mines how s/he fits into the day-to-day buying routine.

When examining a market, marketers primarily notice its

• records

• merchant

• categories

• leaders

Answer explanation

Categories. Marketers look at markets to divide them into groups or categories according to what customers have in common. Merchants, market leaders, and records have little to do with finding categories.

The community college has decided to market its evening classes to women between the ages of 18 and 30 who are high-school graduates. What type of segmentation is the college using?

• statistical

• behavioral

• psychographic

• demographic

Answer explanation

Demographic. Demographic segmentation is the division of a market on the basis of its social and physical characteristics. These include such characteristics as income, age, gen-der, educational level, life stage, and occupation. Geographic segmentation groups con-sumers according to where they are located. Lifestyles and personalities of consumers are used as the basis for psychographic segmentation. Dividing consumers into groups accord-ing to their response to a product is behavioral segmentation.

Sorting customers by their physical and social characteristics is called (a)   segmentation.

• demographic
• behavioral

• statistical

• psychographic

Answer explanation

Demographic. Sorting customers by their physical and social characteristics is called de-mographic segmentation. Psychographic and behavioral segmentation are about sorting customers by their lifestyles and responses. Statistical segmentation is not a marketing term.

Liza has always wanted a horse, and she has finally saved enough money to buy one very soon. In marketing terms, Liza is in the

• target outing

• resource

• market segment

• market

Answer explanation

Market. A market is a customer or potential customer who has an unfulfilled desire and is financially able and willing to satisfy that desire. Liza is a market because she not only wants a horse but also has the money to buy one very soon. A resource is an item that is used to produce goods and services. A target group is a particular segment of the market. A market segment is one of the groups into which the total market is divided.

Jackie is interested in predicting what special events result in higher demand for chocolate candy. She should conduct behavioral segmentation based on

• occasion response

• rate of use

• loyalty response

Answer explanation

Occasion response. Dividing customers into groups based on their response to a product is behavioral segmentation. Customers are grouped into categories according to what they are looking for in a product and why they buy the product. By studying the occasion re-sponses of customers (when they purchase a product, especially for an event such as a wedding, birthday, graduation, etc.), marketers can predict what special events result in demand for products. Segmentation on the basis of usage rate classifies customers as heavy, moderate, light, or nonusers of a product. Customers can also be classified based on the benefits they desire from a product or the devotion and loyalty they feel for a prod-uct.

Today's customers are not influenced by mass marketing alone because they are more

• discerning

• disciplined

• decisive

• determined

Answer explanation

Discerning. Today’s customers may be more determined, decisive, or disciplined—but it is their increased discernment that is related to the fact that they are not influenced by mass marketing alone.

Marketers divide their markets by grouping customers according to their

• similarities

• hobbies

• differences

• occupations

Answer explanation

Similarities. Marketers divide their markets by grouping customers according to their sim-ilarities—not their differences. Customers may be similar in their occupations or hobbies.

To buy a product, customers in a market must first

• learn the product's feature

• make sure the product is for sale

• be willing to buy the product

• locate the product in the store

Answer explanation

Be willing to buy the product. When customers buy a product, they must first have the need or desire, the resources, and the willingness to buy the product. Locating the product in a store, learning about its features—and even making sure that it is on sale—can pro-duce a pleasant purchase experience, but they are not requirements for buying a product.

When using mass marketing, marketers seek to appeal to the

• entire market

• local market

• teen market

• loyal market

Answer explanation

Entire market. Mass marketing involves the entire market—not local, loyal, or teen cus-tomers, in particular.