Principles of marketing/PMKT101/Segmenting markets target audiences/Quiz 1

Segmentation quiz

Indicate whether the following statements are true or false:

• Gender is a means for segmenting a market.
  • True
    • Correct. Gender is a demographic characteristic, as is age, income and education.
  • False
    • Incorrect. Men and women tend to have different purchasing habits and decision-making criteria, and as such it is important to consider different market segments, if they are applicable.
• Industrial customers are in 3 categories: Original Equipment Manufacturers (OEM); End-users; and Aftermarket customers.
  • True
    • Correct. Each of these can be further subdivided into its own segment (i.e., by organization size, volume of production, and location).
  • False
    • Incorrect. Each of these are market segments with their own needs, characteristics, and buyer behaviour.
• Consumer markets can be segmented by the Standard Industrial Classification (SIC)
  • True
    • Incorrect. The SIC classifies business by the main product or service provided. Firms are classified into one of 10 basic STC industries.
  • False
    • Correct. The SIC is an invaluable tool for businesses wanting to segment markets and reach potential customers, suppliers and partners.