Market Segmentation in Foreign Countries
What is market segmentation?
A. The process of setting global prices for all markets
B. Identifying distinct groups of consumers whose purchasing behavior differs from others
C. The act of merging different markets into one global unit
D. Choosing which countries to enter based on GDP levels
B. Identifying distinct groups of consumers whose purchasing behavior differs from others
According to the presentation, consumer needs vary across countries mainly because of differences in:
A. Exchange rates and inflation
B. Culture and level of economic development
C. Climate and political stability
D. Product age and packaging
B. Culture and level of economic development
Which of the following is not a common basis for segmenting markets?
A. Geography
B. Demography
C. Legal system
D. Socio-cultural factors
C. Legal system
What happens if consumer needs were the same everywhere?
A. Firms would need to create unique products for every market
B. Firms could sell standardized products globally
C. Prices would automatically adjust across countries
D. Trade barriers would no longer exist
B. Firms could sell standardized products globally
What is meant by segments that transcend national borders?
A. Market segments that exist only in developing countries
B. Segments of consumers with similar lifestyles and purchasing behavior across countries
C. Groups that require completely different marketing strategies in each nation
D. Segments that are based solely on geographic proximity
B. Segments of consumers with similar lifestyles and purchasing behavior across countries
Which of the following cultural factors can influence how a product should be marketed internationally?
A. Income level and education only
B. Language, religion, tradition, and social structure
C. Packaging size and shipping cost
D. Exchange rate and inflation
B. Language, religion, tradition, and social structure
Which of the following statements is false?
A. Product reliability may be a more important attribute in most advanced countries
B. Consumers in highly developed countries tend to build a lot of extra performance attributes into their products
C. Consumers in the most developed countries are often not willing to sacrifice their preferred attributes for lower prices
D. Consumers in the most advanced countries often shun globally standardized products that have been developed with the lowest common denominator in mind
A. Product reliability may be a more important attribute in most advanced countries
Generally speaking, consumers in the most developed countries are often
A. Willing to sacrifice their preferred attributes for lower prices
B. Not willing to pay more for products that have additional features customized to their tastes
C. Not willing to sacrifice their preferred attributes for lower prices
D. Willing to accept globally standardized products that have been developed with the lowest common denominator in mind
C. Not willing to sacrifice their preferred attributes for lower prices
A hotel chain discovers that the “global youth” market segment responds similarly to its marketing worldwide, while older customers’ preferences vary sharply by country. What can the firm do best?
A. Use a single standardized marketing mix for both youth and older customers
B. Standardize marketing for the youth segment, but localize it for older consumers
C. Focus only on youth markets and ignore other segments
D. Create entirely new products for every national market
B. Standardize marketing for the youth segment, but localize it for older consumers
A smartphone company notices that customers in emerging markets value affordability, while those in advanced economies demand premium features. What should the firm do to maximize sales across both regions?
A. Offer one standardized global smartphone model for all markets
B. Customize features and price levels to fit each market’s economic conditions
C. Focus marketing only on developed markets to increase profits
D. Lower prices globally even if it reduces product performance
B. Customize features and price levels to fit each market’s economic conditions