Market Segmentation MCQs 2026

A perceptual map displays

1. A factory floor layout ✓
2. B consumer perceptions of brands on key attributes ✓
3. C employee org chart ✓
4. D supplier payment terms ✓

Repositioning may be needed when

1. A sales exceed all targets easily ✓
2. B brand is uniquely dominant always ✓
3. C no competition exists ✓
4. D current position is unclear, obsolete or shared by too many competitors ✓

VALS framework segments consumers by

1. A resources and primary motivation ✓
2. B only blood type ✓
3. C only shoe size ✓
4. D only factory output ✓

Segment size and growth potential are evaluated during

1. A target market selection ✓
2. B product disposal only ✓
3. C employee retirement only ✓
4. D machine depreciation only ✓

Counter-segmentation combines

1. A splitting one segment into infinite micro segments ✓
2. B eliminating all customers ✓
3. C previously separate segments into a larger target when needs converge ✓
4. D ignoring positioning ✓

Occasion segmentation divides buyers by

1. A only factory production shift ✓
2. B when they purchase or use a product ✓
3. C only annual audit date ✓
4. D only competitor founding year ✓

Loyalty status segmentation classifies customers as

1. A only employees and suppliers ✓
2. B only government regulators ✓
3. C hard-core, split, shifting and switchers ✓
4. D only machine operators ✓

Segmentation exercise 4: targeting small shop retailers using demographic age and income is appropriate when the firm needs to

1. A tailor product size, price tier and media to measurable group characteristics ✓
2. B treat all buyers identically with one generic message ✓
3. C ignore segment differences to save research cost ✓
4. D target competitors instead of customers ✓

Segmentation exercise 10: targeting price-sensitive rural households using geographic region is appropriate when the firm needs to

1. A treat all buyers identically with one generic message ✓
2. B adapt distribution and promotion to regional climate, culture and access ✓
3. C ignore segment differences to save research cost ✓
4. D target competitors instead of customers ✓

Geographic segmentation divides markets by

1. A region, city size, climate or population density ✓
2. B only psychographic lifestyle ✓
3. C only purchase occasion only ✓
4. D only production technology ✓

Psychographic segmentation considers

1. A only postal zip codes ✓
2. B lifestyle, personality, values and social class ✓
3. C only invoice dates ✓
4. D only machine serial numbers ✓

Behavioral segmentation can use

1. A only factory shift patterns ✓
2. B only CEO age ✓
3. C only warehouse square footage ✓
4. D occasion, benefits sought, user status, usage rate and loyalty ✓

Benefit segmentation groups customers by

1. A random assignment ✓
2. B the specific benefits they seek from a product ✓
3. C factory location only ✓
4. D competitor stock price ✓

Effective segmentation criteria include measurability, accessibility, substantiality and

1. A randomness ✓
2. B opacity ✓
3. C actionability ✓
4. D inflexibility ✓

A target market is selected when a firm

1. A serves every segment equally without focus ✓
2. B ignores all segment data ✓
3. C targets only suppliers ✓
4. D evaluates segment attractiveness and chooses where to compete ✓

Undifferentiated marketing uses

1. A unique offer for every individual ✓
2. B one offer for the entire market ✓
3. C no promotion at all ✓
4. D only B2B contracts ✓

Differentiated marketing targets

1. A one segment only always ✓
2. B several segments with distinct marketing mixes ✓
3. C no segments at all ✓
4. D only employees ✓

Concentrated marketing focuses on

1. A all possible segments simultaneously ✓
2. B only government buyers exclusively forever ✓
3. C a single segment or niche ✓
4. D competitors not customers ✓

Micromarketing includes

1. A only national mass TV campaigns ✓
2. B only factory automation ✓
3. C only export documentation ✓
4. D local and individual marketing tailored to specific customers ✓

Positioning is

1. A setting factory production speed ✓
2. B filing annual tax returns ✓
3. C designing the company offering to occupy a distinct place in target customers' minds ✓
4. D hiring warehouse staff only ✓

Market segmentation divides a market into

1. A distinct groups of buyers with different needs or behaviors ✓
2. B identical buyers with no differences ✓
3. C only geographic regions without other criteria ✓
4. D only competitors not customers ✓

Demographic segmentation uses variables such as

1. A personality traits only ✓
2. B brand loyalty only ✓
3. C factory capacity only ✓
4. D age, gender, income, education and family size ✓

Segmentation exercise 22: targeting students on tight budgets using psychographic lifestyle is appropriate when the firm needs to

1. A treat all buyers identically with one generic message ✓
2. B ignore segment differences to save research cost ✓
3. C align brand personality and messaging with values and lifestyle ✓
4. D target competitors instead of customers ✓

Segmentation exercise 31: targeting premium luxury seekers using behavioral usage rate is appropriate when the firm needs to

1. A treat all buyers identically with one generic message ✓
2. B ignore segment differences to save research cost ✓
3. C reward heavy users and reactivate light users with different offers ✓
4. D target competitors instead of customers ✓

Segmentation exercise 35: targeting health-conscious mothers using benefit sought convenience is appropriate when the firm needs to

1. A treat all buyers identically with one generic message ✓
2. B ignore segment differences to save research cost ✓
3. C target competitors instead of customers ✓
4. D emphasize the specific functional or emotional benefit this group prioritizes ✓

Segmentation exercise 42: targeting price-sensitive rural households using occasion-based festival buying is appropriate when the firm needs to

1. A treat all buyers identically with one generic message ✓
2. B ignore segment differences to save research cost ✓
3. C target competitors instead of customers ✓
4. D schedule campaigns and pack sizes around relevant purchase occasions ✓

Segmentation exercise 54: targeting students on tight budgets using loyalty status is appropriate when the firm needs to

1. A treat all buyers identically with one generic message ✓
2. B ignore segment differences to save research cost ✓
3. C target competitors instead of customers ✓
4. D protect high-loyalty accounts and convert switchers with retention tactics ✓