51. The process of segmentation is essentially about:
a) identifying groups of buyers within a market place who have needs which are distinctive in
the way that they deviate from the ‘average’ consumer
b) meeting customer needs efficiently in order to maximize the company’s profits.
c) understanding customer needs.
d) targeting profitable customers.
52. As individuals pass through various lifecycles stages, which of the following statements is likely
to be most generally TRUE?
a) Their needs remain constant and they consume the same products.
b) Their ability to pay for purchases change but their preferences remain constant.
c) They have increasing amounts of time and disposable income to spend on entertainment.
d) Their ability to pay and preferences change.
53. Once the relevant segmentation criteria are selected, the marketer should then:
a) develop the appropriate segments.
b) choose target markets/countries.
c) develop segments in all qualified countries.
d) position the organization in order to take advantage of identified consumer needs.
54. Demographics, broadly defined, is the study of:
a) population characteristics
b) age and sex
c) buyer behaviour
d) attitudes and lifestyles
55. A sound analysis of the ________________________ competitors for a firm is critical in
delivering the business mission of an organization.
d) direct and indirect
56. According to Porter (1985, 1990), the competitiveness of an industry is determined at the
microeconomic level which rests on two interrelated areas i.e. the sophistication of business
operations and strategy; and:
a) the quality of the microeconomic business environment.
b) the regulations of the microeconomic business environment.
c) the pressure of the macroeconomic business environment.
d) the nature of competitors’ behaviour.
57. Changing lifestyles and cultural practices, an aging population, HIV/AIDS infection rates,
religion, rising education standards and other socio-economic factors have all led to:
a) the rapid change in attitude to new technologies.
b) the emergence of new segments and emergent patterns of consumption.
c) the resistance to globalization.
d) the prolonging of international product life cycles for many products and services.
58. Which of the following is not a contributing factor to the increasing sophistication of business
operations and strategy?
a) Production processes and quality improvements
b) Shortening of product life cycles
c) Management innovations
d) Customer perception of manufacturing techniques
59. A strategy is the comprehensive master plan stating how the organization will achieve its
mission and objectives. In understanding a strategy, organizations aim to:
a) maximize cost efficiencies even if this is achieved at the expense of quality.
b) maximize competitive advantage and minimize weaknesses.
c) maximize competitive advantage and minimize effectiveness
d) optimize costs in delivering the product and after sale service.