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Quizzes > Business & Finance > Marketing & Management

Test Your Knowledge: Market Segmentation & Positioning Quiz

Ready to ace this market segmentation quiz? Master positioning model concepts!

Difficulty: Moderate
2-5mins
Learning OutcomesCheat Sheet
Paper art style illustration featuring market segmentation and positioning quiz prompt on teal background.

Use this market segmentation quiz to practice spotting which statements are true and which are not. You'll get instant feedback to plug study gaps before an exam or to sharpen how you think about segments and positioning. For extra reps, check the marketing true-or-false round or the marketing management quiz.

Which statement best describes the purpose of market segmentation?
To divide a market into groups of consumers with similar needs or behaviors
To eliminate competition in a market
To merge different products into one offering
To set a uniform price for all products
Market segmentation involves dividing a heterogeneous market into smaller, homogenous groups based on characteristics like needs and behaviors, enabling more targeted marketing strategies. It is not about setting uniform prices, merging products, or eliminating competition. By understanding distinct customer needs, firms can tailor their marketing mix effectively. For more details see .
Which of the following is not one of the four traditional bases for consumer market segmentation?
Psychographic
Demographic
Geographic
Technographic
The classic four bases of consumer market segmentation are geographic, demographic, psychographic, and behavioral. Technographic segmentation, which looks at technology usage, is a more recent concept but not one of the traditional four. Understanding these bases helps marketers select appropriate criteria. More information at .
In demographic segmentation, which variable is most commonly used?
Benefit sought
Age
Loyalty status
Personality
Demographic segmentation categorizes consumers by observable statistics such as age, gender, income, education, and family size. Age is one of the most widely used demographic variables because it often correlates with purchasing power and life stage. Personality and benefit-seeking are psychographic and behavioral bases, respectively. See for more.
Psychographic segmentation divides consumers based on which factor?
Lifestyle
Age
Usage rate
Region
Psychographic segmentation groups consumers by psychological attributes such as lifestyle, activities, interests, opinions (AIO), and personality traits. This approach goes beyond demographics to understand why consumers behave as they do. Age and region are demographic variables, while usage rate is behavioral. Learn more at .
Behavioral segmentation includes grouping customers by:
Income level
Personality
Gender
Usage rate
Behavioral segmentation categorizes customers based on their interactions with a product, including usage rate (heavy, medium, light users), purchase occasions, loyalty status, and benefits sought. Income and gender are demographic variables, while personality is psychographic. For deeper insight see .
Which criterion focuses on how identifiable and quantifiable a segment is?
Substantiality
Accessibility
Differentiability
Measurability
Measurability refers to the degree to which the size and purchasing power of a segment can be quantified. It is one of the four key criteria for effective segmentation - measurability, accessibility, substantiality, and differentiability. Without measurability, firms cannot assess the value of targeting a segment. More info at .
Which of these is not a standard criterion for effective market segmentation?
Accessible
Substantial
Measurable
Sustainable
The four standard criteria for effective segmentation are measurability, accessibility, substantiality, and differentiability. 'Sustainable' is not part of the traditional framework. Firms need segments that are measurable, reachable, sufficiently large, and distinct. Reference: .
An undifferentiated (mass) marketing strategy is characterized by:
No marketing strategy at all
Distinct mixes for each segment
Customized products for individual customers
A single marketing mix for the entire market
Undifferentiated marketing treats the entire market as one homogenous segment and uses a single marketing mix. It ignores segment differences to achieve economies of scale. This approach contrasts with differentiated, concentrated, or micromarketing strategies. More at .
Differentiated marketing strategy involves:
Tailoring separate marketing mixes for different segments
Ignoring consumer differences
Targeting only one niche
Using one mix for all segments
Differentiated marketing creates distinct marketing mixes for multiple segments, enabling firms to meet varied needs more precisely. This often leads to higher costs but can result in greater market share. It differs from undifferentiated and concentrated strategies. See .
A concentrated marketing strategy focuses on:
Targeting one primary segment
Serving the mass market
Customizing offerings per individual
Creating multiple product variants
Concentrated marketing (niche marketing) targets a single, well-defined market segment. By focusing on a niche, firms can specialize and typically achieve strong market presence within that segment. It is more focused than differentiated marketing. Reference .
Micromarketing is best described as:
Ignoring segment differences
Applying a mass-market mix
Targeting specific individuals or very small segments
Segmenting only by geography
Micromarketing tailors marketing programs to suit the tastes of individuals or very small customer groups. It uses detailed data to create highly customized offers. It contrasts sharply with mass and differentiated marketing. Learn more at .
Benefit segmentation groups consumers based on:
Income level
Geographic region
Frequency of purchase
Specific advantages or benefits sought from the product
Benefit segmentation divides the market according to the different benefits that consumers seek from a product, such as convenience, quality, or status. It helps firms tailor their value propositions explicitly to these motivations. Geographic and income are other bases, while purchase frequency is behavioral. See .
Which framework is commonly used for psychographic segmentation?
Porter's Five Forces
VALS
PESTLE
SWOT
VALS (Values, Attitudes, and Lifestyles) is a psychographic tool that segments consumers based on psychological traits and key demographics. SWOT and PESTLE are strategic analysis tools, not segmentation frameworks. Porter's model examines industry forces. More at .
Geographic segmentation can include variables like:
Climate
Personality
Usage rate
Marital status
Geographic segmentation divides markets by location-based factors, such as region, city size, population density, and climate. Personality is a psychographic variable, marital status is demographic, and usage rate is behavioral. For context see .
Which variable divides customers by their level of product usage (heavy, medium, light)?
Usage rate
Income
Personality
Region
Usage rate segmentation categorizes consumers by how frequently they use or purchase a product - heavy, medium, or light users. It is a common behavioral basis. Income is demographic, personality is psychographic, and region is geographic. More detail at .
Which statement about segment differentiability is true?
Segments must be identical in demographics
Each segment should respond differently to a distinct marketing mix
It refers to legal distinctions between segments
Differentiability means segments cannot be measured
Differentiability means that segments should react differently to different marketing mixes, allowing effective targeting. It is one of the key segmentation criteria along with measurability, accessibility, and substantiality. Segments need not be identical demographically, and it is unrelated to legal aspects. See .
Which criterion evaluates a segment's ability to be reached and served effectively?
Measurability
Substantiality
Differentiability
Accessibility
Accessibility refers to the degree to which a segment can be reached and served through effective distribution channels and communication. Without accessibility, a segment cannot be targeted profitably. It differs from measurability, substantiality, and differentiability. More at .
In B2B segmentation, which variable classifies businesses by their structure and technology use?
Geographic variables
Operating variables
Psychographic variables
Demographic variables
Operating variables in B2B segmentation include technology, user status, and customer capabilities. Geographic classifications refer to location, psychographics relate to attitudes and culture, and demographics cover industry and company size. More detail at .
Geodemographic segmentation combines which two bases?
Technical and situational
Geographic and demographic
Behavioral and psychographic
Benefit and loyalty
Geodemographic segmentation merges geographic data (like region or urban/rural) with demographic information (such as age or income) to identify neighborhood clusters with shared characteristics. It allows for highly localized targeting. For more see .
What does cannibalization refer to in market segmentation?
Customers ignoring marketing messages
Segments merging over time
A new product taking sales from one of the company's existing products
Competitors copying a brand's position
Cannibalization occurs when a firm's new product or segment-targeted offering eats into the sales of its existing products. It is a key consideration in differentiated and multi-segment strategies. Firms must balance growth against self-competition. More at .
Which advanced segmentation technique uses large datasets to uncover patterns among consumers?
PEST analysis
SWOT analysis
Cluster analysis
Five Forces analysis
Cluster analysis is a statistical technique that groups consumers into segments based on similarities across multiple variables, often using large datasets. It is widely used in modern market segmentation. SWOT, PEST, and Five Forces are strategic planning tools, not segmentation methods. Read more at .
What is a key advantage of behavioral segmentation?
It only uses demographic data
It reflects actual purchase behaviors rather than just characteristics
It ignores consumer actions
It is cheaper than other methods
Behavioral segmentation groups consumers based on their actual interactions with a product, such as purchase history, usage rate, and loyalty. This provides actionable insights into how to influence buying behavior. It goes beyond demographics and can be more predictive of future sales. More at .
Which statement best describes psychographic segmentation?
It segments consumers based on attitudes, interests, opinions, and lifestyles
It divides segments by usage frequency only
It groups customers solely by age and gender
It categorizes markets by climate and location
Psychographic segmentation goes deeper than demographics by examining psychological factors: values, attitudes, interests, opinions, and lifestyles. It helps firms tailor messages that resonate with consumers' inner motivations. Age/gender are demographic, climate is geographic, and usage frequency is behavioral. Learn more at .
When evaluating segment attractiveness, which factor assesses whether segments respond differently to marketing efforts?
Substantiality
Accessibility
Measurability
Differentiability
Differentiability is the criterion that measures whether distinct segments will respond differently to varied marketing mixes. If segments do not exhibit unique responses, separate targeting may not be effective. Accessibility, measurability, and substantiality evaluate other attributes of segments. For deeper reading see .
Hyper-segmentation enabled by big data typically requires which capability?
Static product offerings
Manual data entry for each segment
Ignoring customer behavior data
Real-time analytics to process and act on large volumes of data
Hyper-segmentation leverages big data and advanced analytics to create extremely granular segments, often requiring real-time data processing to customize offers instantly. Manual processes and static offerings cannot keep pace with dynamic consumer insights. For more information see .
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Study Outcomes

  1. Understand Core Segmentation Principles -

    Identify which of the following statements is true of market segmentation and grasp foundational criteria that define effective customer groupings.

  2. Analyze Market Segmentation Question Formats -

    Break down typical quiz items in the market segmentation quiz, recognizing how questions test your knowledge on target market segmentation models.

  3. Apply Targeting and Positioning Models -

    Use insights from the positioning model quiz to match segmentation strategies with appropriate product positioning tactics.

  4. Evaluate Segmentation Strategies -

    Assess real-world scenarios to determine if segmentation approaches align with customer needs and market dynamics.

  5. Reinforce Marketing Mindset -

    Strengthen your critical thinking around marketing segmentation questions and enhance decision-making in campaign planning.

Cheat Sheet

  1. Criteria for Effective Segmentation (MASDA) -

    According to Kotler & Keller, effective segments should be Measurable, Accessible, Substantial, Differentiable, and Actionable - remember the mnemonic "MASDA" to keep them in order. By testing each segment against these five criteria, marketers ensure that target market segments are quantifiable, reachable, profitable, and distinctly different.

  2. Core Segmentation Bases -

    Most companies classify markets through demographic (age, income), geographic (region), psychographic (lifestyle, values), and behavioral (usage rate, loyalty) categories. For example, a premium coffee chain might target high-income urban professionals who value ethically-sourced beans and purchase weekly, illustrating how to tackle market segmentation quiz questions with clarity.

  3. Calculating Segment Attractiveness -

    Assess each target's financial appeal with the formula Segment Profit = Segment Size × Purchase Frequency × Margin per Unit to estimate revenue potential. Then evaluate competitive intensity and brand fit to ensure the segment remains attractive - this helps you answer which of the following statements is true of market segmentation when testing competitive viability.

  4. STP Framework -

    The Segmentation, Targeting, and Positioning (STP) model is a cornerstone of strategic marketing and frequently appears in marketing segmentation questions. Start by breaking the market into segments (Segmentation), selecting the most promising segments (Targeting), and crafting a unique value proposition for each (Positioning). Remember: STP drives the 4 Ps - Product, Price, Place, and Promotion - to deliver tailored messages.

  5. Crafting a Positioning Statement -

    Use the formula "For [target segment], our [brand] is [concept] that [point of difference] because [reason to believe]" to articulate why your offering stands out. For example, "For eco-conscious commuters, EcoRide is an e-bike that offers zero-emission travel because it uses biodegradable battery technology." Practicing this structure boosts confidence and improves your score on positioning model quizzes.

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