Question

1. __________________________ segmentation can be meaningful for the market of car buyers since there are important differences between urban and rural populations when it comes to what benefits consumers are looking for in cars.

		a. Geographic
		b. Life cycle
		c. Benefit
		d. Demographic
		e. Economic

2. The Coca-Cola company just launched a new energy drink called Coca-Cola® Energy. One possible result of this launch is that many consumers who currently drink regular Coca-Cola will switch to the new drink. That would be an example of ___________________________.

		a. confused segmentation
		b. cannibalization
		c. undifferentiation
		d. market repositioning
		e. marketing myopia

3.

A ___________________________ should describe how a product or service is supposed to appeal to a particular target market.

		a. perceptual concept
		b. positioning statement
		c. benefit map
		d. segmentation statement
		e. targeting concept

4.

Caleb and James are both in their mid-30s and work in similar jobs since both of them graduated with a degree in accounting from UIC. However, since Caleb is single and James is married and has two kids, their spending patterns are different. This suggests that _____________________________.

		a. it is impossible to predict what these two consumers will buy
		b. marketers should always use a consumer's age and gender to predict that consumer's preferences
		c. the family life cycle model can explain these differences in buying behavior
		d. they will have different brand preferences across all product categories
		e. segmenting a market isn't always helpful

Answer 1

1. a. Geographic.

Geographic segmentation is a marketing strategy where sellers serve consumers in a particular geographic area whose tastes and preferences vary because of the geographic area they are in. So if the company focuses on selling cars based on the preferences of urban and rural population, they are looking for geographic segmentation.

2. b. cannibalization.

Cannibalization occurs when a company's market share, revenue and sales are reduced when the same producer introduces a new product. So when Coca Cola introduces the new Energy drink, the consumers who currently drink regular coca cola will shift to the new drink, reducing the current market for the regular drink.

3. b. positioning statement.

A positioning statement is a description of how a product or service fills the customers need in a target market. It describes how a product or service is supposed to appeal to the target market as against their competitors. It identifies a niche market and tries to establish itself there.

4. c. family life cycle model can explain this differences in buying behavior.

Family life cycle model considers the different stages of a person's life - whether he is married, retired, number and age of children, and enables sellers to determine the types of products they can provide him. Thus the buying behavior of Caleb and James can be explained and understood by family life cycle model.