MRA Market Segmentation & Targeting 3

Question 1

What is geodemographic segmentation?

Accepted Answer

Combining geographic location with demographic data to profile neighborhood-level consumer clusters

Answer

Geodemographic segmentation integrates geographic and demographic data to identify neighborhood clusters with shared socioeconomic and lifestyle characteristics, as used in systems like PRIZM.

Question 2

RFM analysis segments customers based on:

Accepted Answer

Recency of purchase, Frequency of purchase, and Monetary value spent

Answer

RFM analysis scores customers on how recently they bought, how often they buy, and how much money they spend, enabling prioritization of high-value customer segments.

Question 3

Which multivariate statistical technique is commonly used to identify natural consumer groupings during segmentation research?

Accepted Answer

Cluster analysis

Answer

Cluster analysis groups respondents into segments based on similarity across multiple variables, making it the standard technique for data-driven market segmentation.

Question 4

Benefit segmentation groups consumers according to:

Accepted Answer

The specific benefits or value they seek from a product

Answer

Benefit segmentation classifies consumers by the particular benefits they want from a product (e.g., whitening vs. sensitivity relief in toothpaste), often revealing distinct needs within similar demographics.

Question 5

Segment 'stability' is an important criterion because:

Accepted Answer

It verifies the segment's characteristics remain consistent over time, justifying long-term investment

Answer

Stability means the segment's defining characteristics and behaviors persist over time, making it worthwhile to invest in tailored strategies rather than targeting a fleeting group.

(MRA) Market Research Analyst Certification Practice Test

(MRA) Market Research Analyst Certification Practice Test

MRA Market Segmentation & Targeting 3