Lesson 1.2.3a

1.2.3a Identifying market segments Quiz: Pearson Edexcel Business, Unit 2

20 questions

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Lesson 1.2.3a, Identifying market segments: 20 multiple choice questions for the Pearson Edexcel GCSE Business (1BS0), Unit 2: Spotting a business opportunity, written with Revision Ninja.

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The 20 questions

  1. Which of these is a way of identifying market segments?

    • Dividing customers by age, income or location
    • Dividing competitors by the colour of their logo and their packaging design
    • Dividing suppliers by the size of their delivery vans and fleet of trucks
    • Dividing the market by the number of years each firm has been trading

  2. What is a market segment?

    • A single customer who buys a product from a business every week of the year
    • A government department that regulates a particular industry in the economy
    • A part of a shop's floor that is set aside for a particular product line
    • A group of customers who share similar characteristics or needs

  3. A business segments its market by lifestyle. Which group would this most likely target?

    • Customers who are all aged over ninety and live in the same care home
    • Customers who buy only one type of product in the same supermarket
    • Customers who work for the same company and buy from its canteen
    • Customers who enjoy outdoor activities and buy equipment for hiking

  4. Which of these is an example of demographic segmentation?

    • Targeting customers who buy products for their pets in the local area
    • Targeting customers who are loyal to one particular brand of trainers
    • Targeting customers who prefer to shop on weekday evenings after work
    • Targeting customers aged between 16 and 25

  5. Which of these is a location-based segment?

    • Customers who buy a product more than once a month from the same shop
    • Customers living within ten miles of a city-centre store
    • Customers who have a particular income and spend it on luxury goods
    • Customers who prefer products with a particular brand and logo design

  6. A business targets high-income households with a premium range. Which segmentation basis is this?

    • Location
    • Age
    • Lifestyle
    • Income

  7. Why do businesses use market segmentation?

    • To make sure that all customers are offered exactly the same product
    • To reduce the number of customers the business has to serve each day
    • To target products and marketing at the groups most likely to buy them
    • To avoid the need for any market research before launching a product

  8. A toy business notices that parents of young children buy most of its products. Which segmentation basis does this show?

    • Lifestyle, because parents always have a fixed set of hobbies and interests
    • Income, because parents always spend the same amount on toys each year
    • Location, because the toys are sold in shops that are all in the same town
    • Demographics, because it groups customers by a characteristic such as family status

  9. Which of these would be a risk of targeting a segment that is too narrow?

    • The market for the product may be too small to produce enough sales
    • The business will automatically have to lower its prices for every customer
    • The business will always attract more customers than it can serve properly
    • The business will be unable to use any form of advertising in its campaigns

  10. A café targets students near a university campus. Which segmentation bases are being used?

    • Gender and lifestyle
    • Location and age
    • Lifestyle and income
    • Income and location

  11. Which of these is a lifestyle segment?

    • Customers who earn over £50,000 a year from their employment
    • Customers who are aged between 40 and 50 years old and live in a city
    • Customers who are environmentally conscious and buy only recycled packaging
    • Customers who live in a particular postcode area of a large town

  12. Why might a business segment its market by income rather than by age?

    • Income may better predict how much a customer is able to spend on the product
    • Income is always the same for every person of the same age in the market
    • Income is always easier to find out than any other characteristic of customers
    • Income is always the only factor that determines whether a customer will buy

  13. Which combination of segments would a business use to target a family holiday package?

    • The age of the business and the size of its head office each year
    • Lifestyle of retired people and the number of staff employed by the firm
    • Demographics such as family status and income
    • Location in a town centre and the colour of the holiday brochure

  14. A gym targets people aged 60 and over who want low-impact classes. Which segmentation basis is used?

    • Gender and location, because the classes are for members of one sex only
    • Location and income, because the classes are only held in one town centre
    • Age and lifestyle, because the gym groups people by age and their preferred activities
    • Income and gender, because the classes are only held on weekday mornings

  15. Which of these is the best reason for a business to segment its market before launching a product?

    • To set a single price that every possible customer in the market will pay
    • To make sure that its competitors cannot identify any of its customers
    • To understand which customers are most likely to buy the product and why
    • To avoid the need to design a product that suits any customers at all

  16. Which of these is a demographic segment?

    • Customers who buy products only when they are offered at a discount price
    • Customers who are married with two children and live in a suburb
    • Customers who prefer to buy their groceries from the same independent shop
    • Customers who value a sense of adventure and try new sports each year

  17. A business divides its market by income bands. Which segmentation basis is this?

    • Age
    • Location
    • Income
    • Lifestyle

  18. Which customer group is defined by family status and where its members live?

    • Customers who visit the gym on Tuesday mornings each week
    • Customers who live within walking distance of the city centre
    • Households with children under the age of 12
    • Customers who prefer to buy from brands with bright packaging

  19. A holiday company targets people who enjoy adventure sports. Which segmentation basis is used?

    • Gender
    • Lifestyle
    • Income
    • Location

  20. Why would a business divide its market into segments before deciding its marketing?

    • So that it can set one price that suits every customer in the market
    • So that it no longer needs to conduct any market research at all
    • So that it can avoid all contact with customers in its target market
    • So that its marketing can reach the groups most likely to buy

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