1. TOP 10 Learning Questions for Chapter 8:Identifying Market Segments and Targets Alvin Tsoi September 24, 2010

2. 1. The _____ measures the loyalty of users to a certain brand and their tendency to switch brands Segmentation process Patterns of Target Market Selection Brand Funnel Conversion Model Loyalty Status 2

3. The conversion model measures the strength of consumer’s psychological commitment to brands and their openness to change.

5. 1. The _____ measures the loyalty of users to a certain brand and their tendency to switch brands Segmentation process Patterns of Target Market Selection Brand Funnel Conversion Model Loyalty Status 5

6. 2. _____ is not an effective segmentation criteria Measurable Substantial Timely Accessible Differentiable Actionable 6

7. When segmenting the market, the criteria must be relevant and useful. Criteria must be measurable, substantial, accessible, differentiable and actionable.

8. 2. _____ is not an effective segmentation criteria Measurable Substantial Timely Accessible Differentiable Actionable 8

9. 3. These are the levels of Micromarketing except Segments Loyalty Niches Local Areas Individuals 9

10. Mass marketing is dying. A uniform approach for all consumers is not as effective as it used to be. Micromarketing is a more directed and accurate way of marketing.

11. 3. These are the levels of Micromarketing except Segments Loyalty Niches Local Areas Individuals 11

12. 4. These are the decision roles in behavioral segmentation except Initiator Influencer Decider Buyer Tester User 12

13. Different people are playing different roles, but all are crucial in the decision process and ultimate consumer satisfaction.

14. 4. These are the decision roles in behavioral segmentation except Initiator Influencer Decider Buyer Tester User 14

15. 5. Which of the following is true? There are 3 behavioral variables There are 4 behavioral variables There are 5 behavioral variables There are 6 behavioral variables There are 7 behavioral variables 15

16. Behavioral variables are the best starting points for constructing market segments. There are 7 behavioral variables: Occasions Benefits User status Buyer Readiness Loyalty status Usage rate Attitude

17. Occasions – Based on time e.x. holidays Benefits – Based on benefits gained from the product User status – Nonusers, ex-users, potential users etc Usage rate – Rate of consumption of the product Buyer readiness – Characterized by the brand funnel Loyal status – Based on the degree to which a consumer will switch brands Attitude – Outlook towards the product

18. Combining different behavioral bases can help provide a more complete view of the market.

19. 5. Which of the following is true? There are 3 behavioral variables There are 4 behavioral variables There are 5 behavioral variables There are 6 behavioral variables There are 7 behavioral variables 19

20. 6. Which of the following is true? Shifting loyals are at the bottom of the Loyalty pyramid Switchers are at the bottom of the Loyalty pyramid Hard Core are at the bottom of the Loyalty pyramid Split loyals are at the bottom of the Loyalty pyramid 20

21. Loyalty status is a behavioral variable that defines the loyalty of a consumer to a product.

22. Hard core loyals – buy one brand all the time Split loyals – loyal to two or three brands Shifting loyals – shift loyalty from one brand to another Switchers – No loyalty to any brand

23. 6. Which of the following is true? Shifting loyals are at the bottom of the Loyalty pyramid Switchers are at the bottom of the Loyalty pyramid Hard Core are at the bottom of the Loyalty pyramid Split loyals are at the bottom of the Loyalty pyramid 23

24. 7. A consumer unswayed prices and competition is an example of Shifting loyals Split loyals Hard core Switchers 24

25. Hard core loyals – buy one brand all the time Split loyals – loyal to two or three brands Shifting loyals – shift loyalty from one brand to another Switchers – No loyalty to any brand

26. 7. A consumer unswayed prices and competition is an example of Shifting loyals Split loyals Hard core Switchers 26

27. 8. Salary is a this type of segmentation Geographic Demographic Psychographic Behavioral 27

28. In demographic segmentation, we divide the market into groups of variables. They are easy to: associate with needs and wants measure

29. Demographic segmentation Age cycle Life stage Gender Salary Generation Social class

30. 8. Salary is a this type of segmentation Geographic Demographic Psychographic Behavioral 30

31. 9. A friend who has a treadmill is a _____ to a husband who plans to buy a treadmill for his wife Initiator Influencer Decider Buyer User 31

32. People play 5 roles in a buying decision: Initiator Influencer Decider Buyer User

33. 9. A mother dictating the shampoo to be used by the child is a(an) Initiator Influencer Decider Buyer User 33

34. 10. Determining the population size is a type of segmentation criteria Measurable Substantial Accessible Differentiable Actionable 34

35. Effective segmentation criteria: Measurable Substantial Accessible Differentiable Actionable

36. Measurable – Size, purchasing power and characteristics of the segment can be measured Substantial – Large and profitable enough to serve Accessible – Effectively reached and served Differentiable – Conceptually distinguishable Actionable – Effective programs can be formulated

37. 10. Determining the population size is a type of segmentation criteria Measurable Substantial Accessible Differentiable Actionable 37

38. TOP 10 Learning Questions for Chapter 8:Identifying Market Segments and Targets Alvin Tsoi September 24, 2010