Question 1

The final step in market segmentation is selecting segmentation descriptors.

Accepted Answer

A) True 
 B)False

Question 2

Customers looking for luxury want products that exhibit careful craftsmanship,timeless design,prestige,and exclusivity.This type of market is segmented by ethnicity.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is an advantage of a multisegment targeting strategy?

Accepted Answer

A)  It significantly reduces the risk of product cannibalization. 
B)  It provides economies of scale in manufacturing and marketing. 
C)  It does not require firms to tailor marketing mixes to the preferences of market segments. 
D)  It decreases the costs involved in product design,marketing research,and management. 
A)  It significantly reduces the risk of product cannibalization. 
B)  It provides economies of scale in manufacturing and marketing. 
C)  It does not require firms to tailor marketing mixes to the preferences of market segments. 
D)  It decreases the costs involved in product design,marketing research,and management.

Question 4

Generation Y grew up as latchkey kids,meaning that they spent time alone at home while their (often divorced)parents worked long into the night,and they were the best-educated generation.

Accepted Answer

A) True 
 B)False

Question 5

Tennot Inc.sells used cars.It focuses solely on low-income customers who prefer to buy a used car rather than a new one.Therefore,it develops one marketing mix that targets a low-income demographic group.In this scenario,Tennot Inc.most likely uses a(n)_____.

Accepted Answer

A)  undifferentiated targeting strategy 
B)  multisegment targeting strategy 
C)  concentrated targeting strategy 
D)  universal targeting strategy 
A)  undifferentiated targeting strategy 
B)  multisegment targeting strategy 
C)  concentrated targeting strategy 
D)  universal targeting strategy

Question 6

Nalpas Inc.,an apparel company,manufactures clothes for men,women,and children.It further divides its core customers according to demographic variables such as income,ethnic background,and family life cycle.These demographic variables are examples of _____.

Accepted Answer

A)  product bases 
B)  segmentation bases 
C)  product categories 
D)  market segments 
A)  product bases 
B)  segmentation bases 
C)  product categories 
D)  market segments

Question 7

Why do marketers segment their markets and what are the basic criteria for doing so successfully?

Accepted Answer

A)  Segments must be composed of people with different product needs. 
B)  Segments must be composed of people with different characteristics. 
C)  Segments must be large enough to warrant developing and maintaining a special marketing mix. 
D)  Segments must be divided according to the North American Industry Classification System. 
A)  Segments must be composed of people with different product needs. 
B)  Segments must be composed of people with different characteristics. 
C)  Segments must be large enough to warrant developing and maintaining a special marketing mix. 
D)  Segments must be divided according to the North American Industry Classification System.

Question 8

To position a product as being associated with a particular category of products is positioning by:

Accepted Answer

A)  product user. 
B)  product class. 
C)  attribute. 
D)  product differentiation. 
A)  product user. 
B)  product class. 
C)  attribute. 
D)  product differentiation.

Question 9

New technology that allows marketers to collect detailed information of customers offers marketers a more cost-effective way to reach customers and:

Accepted Answer

A)  choose which segment or segments to target. 
B)  enables businesses to personalize their messages. 
C)  review general activity on the website. 
D)  position the product. 
A)  choose which segment or segments to target. 
B)  enables businesses to personalize their messages. 
C)  review general activity on the website. 
D)  position the product.

Question 10

Volten Inc.is an apparel store.It has separate sections for casual wear,office wear,and party wear.It offers a broad selection of clothing across various price ranges to accommodate consumers at different income levels.In this way,Volten caters to different socioeconomic groups.Volten targets its market segments using _____ as its base for product positioning.

Accepted Answer

A)  product class 
B)  application 
C)  competitor 
D)  product user 
A)  product class 
B)  application 
C)  competitor 
D)  product user

Question 11

A firm which produces replicas of famous paintings of reputed and great artists has as its target customers: socialites,celebrities,and the hospitality industry.What type of market segmentation is used in this case?

Accepted Answer

A)  Geographic segmentation 
B)  Psychographic segmentation 
C)  Benefit segmentation 
D)  Demographic segmentation 
A)  Geographic segmentation 
B)  Psychographic segmentation 
C)  Benefit segmentation 
D)  Demographic segmentation

Question 12

Single-variable segmentation has the advantage of being more precise than multiple-variable segmentation.

Accepted Answer

A) True 
 B)False

Question 13

Based on the target market(s),a marketer develops the product's positioning,a process that influences nonpotential customers' overall perception of a brand.

Accepted Answer

A) True 
 B)False

Question 14

When selecting strategies for targeting markets,which of the following is a disadvantage of an undifferentiated targeting strategy?

Accepted Answer

A)  It results in market segments that are either too small or that shrink because of environmental changes. 
B)  It often results in sterile,unimaginative product offerings that have little appeal to anyone. 
C)  It results in cannibalization of products. 
D)  It increases the production and marketing costs of a firm. 
A)  It results in market segments that are either too small or that shrink because of environmental changes. 
B)  It often results in sterile,unimaginative product offerings that have little appeal to anyone. 
C)  It results in cannibalization of products. 
D)  It increases the production and marketing costs of a firm.

Question 15

In the context of customer relationship management (CRM),_____ offers marketers a more cost-effective way to reach customers and enables businesses to personalize their messages.

Accepted Answer

A)  repositioning 
B)  undifferentiated targeting 
C)  cannibalization 
D)  new technology 
A)  repositioning 
B)  undifferentiated targeting 
C)  cannibalization 
D)  new technology

Question 16

A firm that adopts an undifferentiated targeting strategy assumes that:

Accepted Answer

A)  a market is composed of narrowly defined market segments. 
B)  small firms can compete effectively with large firms. 
C)  concentrating all resources on understanding the needs of a single market may lead to cannibalization. 
D)  individual customers have similar needs that can be met with a common marketing mix. 
A)  a market is composed of narrowly defined market segments. 
B)  small firms can compete effectively with large firms. 
C)  concentrating all resources on understanding the needs of a single market may lead to cannibalization. 
D)  individual customers have similar needs that can be met with a common marketing mix.

Question 17

A cosmetic company manufactures products for skin and hair care for both men and women in the 20- to 50-year-old age group.Which type of market segmentation approach does the company undertake?

Accepted Answer

A)  Geographic segmentation 
B)  Psychographic segmentation 
C)  Benefit segmentation 
D)  Demographic segmentation 
A)  Geographic segmentation 
B)  Psychographic segmentation 
C)  Benefit segmentation 
D)  Demographic segmentation

Question 18

Wesley Electronics Inc.manufactures electronic gadgets.Its marketing team spent a great deal of money on advertising to create awareness about the company's products among potential customers and employs a variety of methods,such as print,broadcast,and online advertising.According to the steps involved in segmenting a market,Wesley Electronics most likely is:

Accepted Answer

A)  selecting a market or product category for study. 
B)  designing and implementing its marketing mix. 
C)  profiling and analyzing market segments. 
D)  selecting segmentation descriptors for a market. 
A)  selecting a market or product category for study. 
B)  designing and implementing its marketing mix. 
C)  profiling and analyzing market segments. 
D)  selecting segmentation descriptors for a market.

Question 19

Rolls Royce cars target only the premium car market segment.This is a classic example of:

Accepted Answer

A)  multisegment targeting. 
B)  undifferentiated targeting. 
C)  differentiated targeting. 
D)  concentrated targeting. 
A)  multisegment targeting. 
B)  undifferentiated targeting. 
C)  differentiated targeting. 
D)  concentrated targeting.

Question 20

Ethnic segmentation involves segmenting potential customers into neighborhood lifestyle categories.

Accepted Answer

A) True 
 B)False

The final step in market segmentation is selecting segmentation descriptors.

Customers looking for luxury want products that exhibit careful craftsmanship,timeless design,prestige,and exclusivity.This type of market is segmented by ethnicity.

Which of the following is an advantage of a multisegment targeting strategy?

Generation Y grew up as latchkey kids,meaning that they spent time alone at home while their (often divorced)parents worked long into the night,and they were the best-educated generation.

Tennot Inc.sells used cars.It focuses solely on low-income customers who prefer to buy a used car rather than a new one.Therefore,it develops one marketing mix that targets a low-income demographic group.In this scenario,Tennot Inc.most likely uses a(n)_____.

Nalpas Inc.,an apparel company,manufactures clothes for men,women,and children.It further divides its core customers according to demographic variables such as income,ethnic background,and family life cycle.These demographic variables are examples of _____.

Why do marketers segment their markets and what are the basic criteria for doing so successfully?

To position a product as being associated with a particular category of products is positioning by:

New technology that allows marketers to collect detailed information of customers offers marketers a more cost-effective way to reach customers and:

A firm which produces replicas of famous paintings of reputed and great artists has as its target customers: socialites,celebrities,and the hospitality industry.What type of market segmentation is used in this case?

Single-variable segmentation has the advantage of being more precise than multiple-variable segmentation.

Based on the target market(s),a marketer develops the product's positioning,a process that influences nonpotential customers' overall perception of a brand.

When selecting strategies for targeting markets,which of the following is a disadvantage of an undifferentiated targeting strategy?

In the context of customer relationship management (CRM),_____ offers marketers a more cost-effective way to reach customers and enables businesses to personalize their messages.

A firm that adopts an undifferentiated targeting strategy assumes that:

A cosmetic company manufactures products for skin and hair care for both men and women in the 20- to 50-year-old age group.Which type of market segmentation approach does the company undertake?

Rolls Royce cars target only the premium car market segment.This is a classic example of:

Ethnic segmentation involves segmenting potential customers into neighborhood lifestyle categories.

An Overview of Marketing

Strategic Planning and Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Supply Chain Management and Marketing Channels

Retailing

Marketing Communications

Advertising,public Relations,and Sales Promotion

Personal Selling and Sales Management

Social Media and Marketing

Pricing Concepts

Filters

Exam 8: Segmenting and Targeting Markets

The final step in market segmentation is selecting segmentation descriptors.

Customers looking for luxury want products that exhibit careful craftsmanship,timeless design,prestige,and exclusivity.This type of market is segmented by ethnicity.

Which of the following is an advantage of a multisegment targeting strategy?

Generation Y grew up as latchkey kids,meaning that they spent time alone at home while their (often divorced)parents worked long into the night,and they were the best-educated generation.

Tennot Inc.sells used cars.It focuses solely on low-income customers who prefer to buy a used car rather than a new one.Therefore,it develops one marketing mix that targets a low-income demographic group.In this scenario,Tennot Inc.most likely uses a(n)_____.

Nalpas Inc.,an apparel company,manufactures clothes for men,women,and children.It further divides its core customers according to demographic variables such as income,ethnic background,and family life cycle.These demographic variables are examples of _____.

Why do marketers segment their markets and what are the basic criteria for doing so successfully?

To position a product as being associated with a particular category of products is positioning by:

New technology that allows marketers to collect detailed information of customers offers marketers a more cost-effective way to reach customers and:

A firm which produces replicas of famous paintings of reputed and great artists has as its target customers: socialites,celebrities,and the hospitality industry.What type of market segmentation is used in this case?

Single-variable segmentation has the advantage of being more precise than multiple-variable segmentation.

Based on the target market(s),a marketer develops the product's positioning,a process that influences nonpotential customers' overall perception of a brand.

When selecting strategies for targeting markets,which of the following is a disadvantage of an undifferentiated targeting strategy?

In the context of customer relationship management (CRM),_____ offers marketers a more cost-effective way to reach customers and enables businesses to personalize their messages.

A firm that adopts an undifferentiated targeting strategy assumes that:

A cosmetic company manufactures products for skin and hair care for both men and women in the 20- to 50-year-old age group.Which type of market segmentation approach does the company undertake?

Rolls Royce cars target only the premium car market segment.This is a classic example of:

Ethnic segmentation involves segmenting potential customers into neighborhood lifestyle categories.

An Overview of Marketing

Strategic Planning and Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Supply Chain Management and Marketing Channels

Retailing

Marketing Communications

Advertising,public Relations,and Sales Promotion

Personal Selling and Sales Management

Social Media and Marketing

Pricing Concepts

Filters