Business Services Marketing 3 — Questions and Answers
Question 1: Which segmentation approach divides customers by their lifestyle, values, and personality traits?
- Geographic segmentation
- Demographic segmentation
- Behavioral segmentation
- Psychographic segmentation (Correct answer)
Correct answer: Psychographic segmentation
Psychographic segmentation groups consumers based on psychological characteristics such as values, attitudes, interests, and lifestyle.
Question 2: A business measures how much revenue each customer generates over their entire relationship with the company. This is:
- Customer acquisition cost
- Net promoter score
- Customer lifetime value (Correct answer)
- Churn rate
Correct answer: Customer lifetime value
Customer lifetime value (CLV) estimates the total net revenue a business can expect from a single customer account.
Question 3: Which social media marketing objective focuses on getting existing content seen by more people through paid amplification?
- Influencer seeding
- Organic reach
- Paid reach / boosting (Correct answer)
- Community management
Correct answer: Paid reach / boosting
Paid reach or boosting uses ad spend to distribute content beyond organic followers to a broader or targeted audience.
Question 4: What is the primary purpose of a unique selling proposition (USP)?
- To set the product's retail price
- To differentiate a brand from competitors in the market (Correct answer)
- To outline the company's internal sales targets
- To define the distribution channel strategy
Correct answer: To differentiate a brand from competitors in the market
A USP clearly communicates the distinctive benefit that makes a brand or product preferable over alternatives.
Question 5: A retailer places its store-brand products at eye level while pushing national brands to lower shelves. This is an example of:
- Loss leader strategy
- Planogram optimization (Correct answer)
- Category management bias
- Co-branding
Correct answer: Planogram optimization
A planogram is a visual diagram retailers use to arrange products on shelves, and optimizing it to favor certain items is a standard merchandising tactic.
Question 6: Which type of market research involves observing consumers in their natural environment without direct interaction?
- Survey research
- Ethnographic research (Correct answer)
- Focus groups
- A/B testing
Correct answer: Ethnographic research
Ethnographic research studies consumers in real-world settings to understand behaviors and motivations in context.
Question 7: A company pays a famous athlete to promote its energy drink on social media. This is best described as:
- Affiliate marketing
- Influencer marketing (Correct answer)
- Native advertising
- Sponsorship activation
Correct answer: Influencer marketing
Influencer marketing leverages individuals with large or engaged followings to promote products to their audience.
Business Services Marketing 3
Which segmentation approach divides customers by their lifestyle, values, and personality traits?