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
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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
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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
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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
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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
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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
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A business targets high-income households with a premium range. Which segmentation basis is this?
- Location
- Age
- Lifestyle
- Income
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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A business divides its market by income bands. Which segmentation basis is this?
- Age
- Location
- Income
- Lifestyle
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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
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A holiday company targets people who enjoy adventure sports. Which segmentation basis is used?
- Gender
- Lifestyle
- Income
- Location
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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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