MRA Market Segmentation & Targeting 1 — Questions and Answers
Question 1: What is market segmentation?
- The process of dividing a broad market into distinct subgroups of consumers with common needs or characteristics (Correct answer)
- The process of setting prices for different product lines
- A method of distributing products across multiple retail channels
- The analysis of a company's total market share relative to competitors
Correct answer: The process of dividing a broad market into distinct subgroups of consumers with common needs or characteristics
Market segmentation divides a heterogeneous market into distinct subgroups (segments) that share common characteristics, enabling more targeted marketing strategies.
Question 2: Which of the following is a demographic segmentation variable?
- Brand loyalty level
- Household income (Correct answer)
- Benefits sought from a product
- Attitudes toward environmental sustainability
Correct answer: Household income
Household income is a demographic variable; demographics include age, income, education, gender, and family size — measurable population statistics.
Question 3: What does psychographic segmentation primarily focus on?
- Where consumers live and work
- How frequently consumers purchase a product
- Consumers' lifestyles, values, interests, and personality traits (Correct answer)
- Consumers' age and occupation
Correct answer: Consumers' lifestyles, values, interests, and personality traits
Psychographic segmentation groups consumers based on psychological attributes such as lifestyles, values, attitudes, and interests, which go beyond observable demographics.
Question 4: Which segmentation base divides the market by climate, region, or population density?
- Psychographic segmentation
- Behavioral segmentation
- Geographic segmentation (Correct answer)
- Firmographic segmentation
Correct answer: Geographic segmentation
Geographic segmentation groups consumers by location-based variables such as country, region, city size, climate, or urban vs. rural settings.
Question 5: Which criterion for effective market segmentation requires that a segment must be large enough to generate sufficient revenue?
- Differentiability
- Actionability
- Substantiality (Correct answer)
- Accessibility
Correct answer: Substantiality
Substantiality means a segment must be large and profitable enough to justify developing a tailored marketing strategy for it.
Question 6: Behavioral segmentation divides consumers based on:
- Their zip code and regional location
- Their age, education, and marital status
- Their purchase occasions, usage rate, loyalty status, and benefits sought (Correct answer)
- Their social class and lifestyle choices
Correct answer: Their purchase occasions, usage rate, loyalty status, and benefits sought
Behavioral segmentation uses actual consumer actions — such as purchase frequency, brand loyalty, usage occasions, and benefits sought — to group buyers.
Question 7: A market segment is considered 'measurable' when:
- It can be reached through targeted advertising channels
- Its size, purchasing power, and profile can be quantified (Correct answer)
- It responds differently to a distinct marketing mix than other segments
- It is large enough to be profitable over the long term
Correct answer: Its size, purchasing power, and profile can be quantified
Measurability means researchers can obtain and quantify data about the segment's size, purchasing power, and key characteristics.
MRA Market Segmentation & Targeting 1
What is market segmentation?