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OCR Business GCSE 1-9 2.3. Market Segmentation

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.
How is a market segmented by 'lifestyle'?
a)
Products can be aimed specifically at males or females or both
b)
People have different hobbies and interests, which can be connected to income and location.
c)
Consumers live in different parts of the country and will have different tastes and needs.  Those living in the city might want a smaller car
d)
Age groups can be split into categories e.g. 0-10, 11-16 or 18+.  Or even by young and old
2.
How is a market segmented by 'location'?
a)
Products can be aimed specifically at males or females or both
b)
People have different hobbies and interests, which can be connected to income and location.
c)
Consumers live in different parts of the country and will have different tastes and needs.  Those living in the city might want a smaller car
d)
Age groups can be split into categories e.g. 0-10, 11-16 or 18+.  Or even by young and old
3.

Market segmentation:

a)

Divides customers into sub groups

b)

Is a method of promotion

c)

Is a qualitative form of market research

d)

Transports products to customers

4.

An internet travel agent sells expensive round the world cruises. Which of the following market segments is the travel agent most likely to target?

a)

Families with children under 5

b)

Local residents

c)

People with high incomes

d)

Young, single men

5.

The particular market segment at which a business aims its products is known as the:

a)

Target Market

b)

Unique Selling Point

c)

Main Market

d)

Market Leader

6.

The market for a product or service can often be broken down into different area where customers have distinct needs and wants. These areas are called market:

a)

Sections

b)

Segments

c)

Synergies

d)

Forces

7.

Which of the following is an advantage of using market segmentation?

a)

It allows a business to charge higher prices

b)

It lets a business invest more in plant and machinery

c)

It saves business money by avoiding the need for TV advertising

d)

It allows a business to target its promotional strategy more effectively.

8.

What is a disadvantage of using market segmentation?

a)

You can't sell your products to everyone

b)

It is rarely effective

c)

It requires additional market research

d)

Not everyone likes tangerines

9.

Segmenting the market by 'lifestyle' would NOT include....

a)

Interests

b)

Social Groups

c)

Age

d)

Behaviours

10.

A disadvantage of market segmentation is...

a)

Making different product variants for different segments is expensive

b)

It will lead to products better suited to customer needs

c)

It will reduce marketing costs by not targeting unprofitable segments

d)

It helps businesses avoid entering overly-competitive markets