Question 1

Usage rate is

Accepted Answer

A)  the percentage of total possible users divided by the total number of consumers who actually use a product or service. 
B)  the number of times a customer uses or recommends a product or service annually. 
C)  the quantity consumed or patronage (store visits) during a specific period. 
D)  the maximum number of times a customer has used a product or service historically. 
E)  the profits a firm earns from customers who consume a particular product or service. 
A)  the percentage of total possible users divided by the total number of consumers who actually use a product or service. 
B)  the number of times a customer uses or recommends a product or service annually. 
C)  the quantity consumed or patronage (store visits) during a specific period. 
D)  the maximum number of times a customer has used a product or service historically. 
E)  the profits a firm earns from customers who consume a particular product or service.

Question 2

A market-product grid is a

Accepted Answer

A)  visual representation of all products offered within a specific product class. 
B)  framework used to compare the relative market share of one firm's product offerings to those of its competitors. 
C)  technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. 
D)  framework used to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. 
E)  technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products. 
A)  visual representation of all products offered within a specific product class. 
B)  framework used to compare the relative market share of one firm's product offerings to those of its competitors. 
C)  technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. 
D)  framework used to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. 
E)  technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.

Question 3

Product differentiation is

Accepted Answer

A)  a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs. 
B)  the unique combination of product benefits received by targeted buyers. 
C)  those characteristics of a product that make it superior to competitive substitutes. 
D)  a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products. 
E)  the legal requirement that requires a specified degree of distinction between products to ensure an organization's intellectual property rights. 
A)  a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs. 
B)  the unique combination of product benefits received by targeted buyers. 
C)  those characteristics of a product that make it superior to competitive substitutes. 
D)  a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products. 
E)  the legal requirement that requires a specified degree of distinction between products to ensure an organization's intellectual property rights.

Question 4

Market segmentation is

Accepted Answer

A)  the philosophy that to do a truly excellent job of marketing, a company should concentrate on only one customer segment at a time. 
B)  sorting prospective buyers into groups that are willing to pay more than the cost of production for a good or service. 
C)  disaggregating prospective buyers from groups into segments of one (individuals) and then creating specific products that will satisfy this person's unique needs. 
D)  aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action. 
E)  the belief that it is possible to satisfy every customer's needs if you can identify the correct segment within which they belong. 
A)  the philosophy that to do a truly excellent job of marketing, a company should concentrate on only one customer segment at a time. 
B)  sorting prospective buyers into groups that are willing to pay more than the cost of production for a good or service. 
C)  disaggregating prospective buyers from groups into segments of one (individuals) and then creating specific products that will satisfy this person's unique needs. 
D)  aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action. 
E)  the belief that it is possible to satisfy every customer's needs if you can identify the correct segment within which they belong.

Question 5

All of these are examples of increased customer value from organizational synergy except which?

Accepted Answer

A)  lower prices 
B)  increased brand awareness 
C)  more products 
D)  improved distribution 
E)  improved quality of existing products 
A)  lower prices 
B)  increased brand awareness 
C)  more products 
D)  improved distribution 
E)  improved quality of existing products

Question 6

College dorm residents frequently want to keep and prepare their own food and snacks to save money or have a late-night snack. However, their dorm rooms are often woefully short of space. MicroFridge understands this and markets a combination microwave, refrigerator, freezer, smoke sensor, and charging station appliance targeted to these students. MicroFridge is most likely using which basis of segmentation?

Accepted Answer

A)  sociocultural segmentation 
B)  psychographic segmentation 
C)  geographic segmentation 
D)  behavioral segmentation 
E)  socioeconomic segmentation 
A)  sociocultural segmentation 
B)  psychographic segmentation 
C)  geographic segmentation 
D)  behavioral segmentation 
E)  socioeconomic segmentation

Question 7

The place a product occupies in consumers' minds on important attributes relative to competitive products is referred to as

Accepted Answer

A)  product repositioning. 
B)  relative positioning. 
C)  competitive positioning. 
D)  product positioning. 
E)  selective perception. 
A)  product repositioning. 
B)  relative positioning. 
C)  competitive positioning. 
D)  product positioning. 
E)  selective perception.

Question 8

By dividing its tennis racquet market into three categories, which it labels Performance, Recreational, and Junior tennis players, Prince Sports is using a marketing strategy called

Accepted Answer

A)  product differentiation. 
B)  product innovation. 
C)  market delineation. 
D)  market segmentation. 
E)  product groupings. 
A)  product differentiation. 
B)  product innovation. 
C)  market delineation. 
D)  market segmentation. 
E)  product groupings.

Question 9

The effort and expense of segmentation should be undertaken by a business firm only when

Accepted Answer

A)  it can comfortably maintain market share. 
B)  it expects this to result in increased sales and profits. 
C)  it can also assume social responsibility. 
D)  the firm's resources are very scarce. 
E)  it desires to provide the best quality products on the market. 
A)  it can comfortably maintain market share. 
B)  it expects this to result in increased sales and profits. 
C)  it can also assume social responsibility. 
D)  the firm's resources are very scarce. 
E)  it desires to provide the best quality products on the market.

Question 10

Some Timex wristwatches can be purchased for less than $30 while Rolex wristwatches may carry a price tag of several thousand dollars. In general, consumers view Timex watches as being dependable, relatively accurate, and inexpensive timepieces that can be purchased in drugstores, discount stores, and department stores. The Rolex brand is perceived as an expensive status symbol distributed in fine jewelry stores or specialty shops. By using distinctly different pricing and distribution strategies, the marketers of Rolex watches

Accepted Answer

A)  compete for the same segment through different channels of distribution. 
B)  develop similar products as Timex but under different names. 
C)  use a differentiation positioning strategy. 
D)  compete for the same customers through similar retail outlets. 
E)  create cognitive dissonance in consumers who purchased Timex wristwatches. 
A)  compete for the same segment through different channels of distribution. 
B)  develop similar products as Timex but under different names. 
C)  use a differentiation positioning strategy. 
D)  compete for the same customers through similar retail outlets. 
E)  create cognitive dissonance in consumers who purchased Timex wristwatches.

Question 11

Which of the following statements regarding when and how to segment markets is most accurate?

Accepted Answer

A)  Even if a firm finds uniform needs across all users, it should take advantage of the method to avoid falling behind its competitors. 
B)  Market segmentation is only feasible for large corporations; small businesses don't have the resources to engage in the process. 
C)  Governments should not attempt market segmentation because the strategy is only applicable for consumer and organizational markets. 
D)  If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment. 
E)  Market segmentation strategies work less than 10 percent of the time. 
A)  Even if a firm finds uniform needs across all users, it should take advantage of the method to avoid falling behind its competitors. 
B)  Market segmentation is only feasible for large corporations; small businesses don't have the resources to engage in the process. 
C)  Governments should not attempt market segmentation because the strategy is only applicable for consumer and organizational markets. 
D)  If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment. 
E)  Market segmentation strategies work less than 10 percent of the time.

Question 12

Which of the following statements about market segmentation for organizational markets is most accurate?

Accepted Answer

A)  Criteria for segmenting markets are the same whether the market is composed of consumers or organizations. 
B)  Both consumer markets and organizational markets use demographic, geographic, and behavioral bases to segment markets. 
C)  Psychographic criteria are just as important in segmenting organizational markets as they are in segmenting consumer markets. 
D)  Consumer markets use market segmentation criteria while organizational markets do not. 
E)  The greatest difference in market segmentation strategies between consumer and organizational markets is the number of employees employed in the segmentation process. 
A)  Criteria for segmenting markets are the same whether the market is composed of consumers or organizations. 
B)  Both consumer markets and organizational markets use demographic, geographic, and behavioral bases to segment markets. 
C)  Psychographic criteria are just as important in segmenting organizational markets as they are in segmenting consumer markets. 
D)  Consumer markets use market segmentation criteria while organizational markets do not. 
E)  The greatest difference in market segmentation strategies between consumer and organizational markets is the number of employees employed in the segmentation process.

Question 13

At a Hallmark store you can find several lines of greeting cards, including Fresh Ink, Nature's Sketchbook, Shoebox, Maxine, Mahogany, and Tree of Life cards-all made by Hallmark for sale in its stores and intended to appeal to different target markets. The Mahogany line is designed to appeal to African Americans. This is an example of ________ segmentation.

Accepted Answer

A)  regional 
B)  lifestyle 
C)  demographic 
D)  geographic 
E)  psychographic 
A)  regional 
B)  lifestyle 
C)  demographic 
D)  geographic 
E)  psychographic

Question 14

In the athletic shoe market, Adidas AG and Nike Inc. practice ________ positioning since both companies vie for the same customers with technologically advanced products.

Accepted Answer

A)  psychological 
B)  perceptual 
C)  differentiation 
D)  head-to-head 
E)  market 
A)  psychological 
B)  perceptual 
C)  differentiation 
D)  head-to-head 
E)  market

Question 15

The final step in segmenting and targeting markets that links customer needs to marketing actions is to

Accepted Answer

A)  take marketing actions to reach target markets. 
B)  group potential buyers into segments. 
C)  select target markets. 
D)  group products to be sold into categories. 
E)  develop a market-product grid and estimate size of the overall market. 
A)  take marketing actions to reach target markets. 
B)  group potential buyers into segments. 
C)  select target markets. 
D)  group products to be sold into categories. 
E)  develop a market-product grid and estimate size of the overall market.

Question 16

Which of these fast-food restaurants has the highest customer lifetime value?

Accepted Answer

A)  Wendy's 
B)  McDonald's 
C)  Burger King 
D)  McDonald's and Burger King are roughly tied for highest 
E)  Wendy's and Burger King are roughly tied for highest 
A)  Wendy's 
B)  McDonald's 
C)  Burger King 
D)  McDonald's and Burger King are roughly tied for highest 
E)  Wendy's and Burger King are roughly tied for highest

Question 17

Marketing synergies often come at the expense of product synergies because

Accepted Answer

A)  product synergies are more effective for penetrating a market rather than creating one. 
B)  multiple market segments usually require multiple products. 
C)  it is easier to change a product than to completely develop a new marketing plan. 
D)  a single customer segment will likely require a variety of products, each of which must be designed and manufactured. 
E)  no company can afford to do both at the same time. 
A)  product synergies are more effective for penetrating a market rather than creating one. 
B)  multiple market segments usually require multiple products. 
C)  it is easier to change a product than to completely develop a new marketing plan. 
D)  a single customer segment will likely require a variety of products, each of which must be designed and manufactured. 
E)  no company can afford to do both at the same time.

Question 18

According to an analysis of an Apple market-product grid for its personal computer line, Apple would get the least product synergies from the

Accepted Answer

A)  most expensive products, Mac Pro and MacBook Pro. 
B)  most versatile products, Mac Pro and iMac. 
C)  products with the most complimentary market segments, iMac and MacBook Air. 
D)  products with the fewest complimentary market segments, Mac Pro and Mac Mini. 
E)  least frequently updated products, MacBook Air and Mac Mini. 
A)  most expensive products, Mac Pro and MacBook Pro. 
B)  most versatile products, Mac Pro and iMac. 
C)  products with the most complimentary market segments, iMac and MacBook Air. 
D)  products with the fewest complimentary market segments, Mac Pro and Mac Mini. 
E)  least frequently updated products, MacBook Air and Mac Mini.

Question 19

Airlines have developed frequent-flyer programs to encourage passengers to use the same airline repeatedly. This marketing strategy is based on ________ segmentation.

Accepted Answer

A)  geographic 
B)  behavioral 
C)  psychographic 
D)  demographic 
E)  rate-based 
A)  geographic 
B)  behavioral 
C)  psychographic 
D)  demographic 
E)  rate-based

Question 20

Marketers use perceptual maps as a means to display in two dimensions the location of products or brands

Accepted Answer

A)  against large market segments in a market-product grid. 
B)  against small market segments in a market-product grid. 
C)  in virtual space that represents the business or product's time in existence and growth. 
D)  in the minds of consumers. 
E)  against the revenues generated by other products or brands within the company. 
A)  against large market segments in a market-product grid. 
B)  against small market segments in a market-product grid. 
C)  in virtual space that represents the business or product's time in existence and growth. 
D)  in the minds of consumers. 
E)  against the revenues generated by other products or brands within the company.

Exam 9: Market Segmentation, Targeting, and Positioning

Usage rate is

A market-product grid is a

Product differentiation is

Market segmentation is

All of these are examples of increased customer value from organizational synergy except which?

The place a product occupies in consumers' minds on important attributes relative to competitive products is referred to as

By dividing its tennis racquet market into three categories, which it labels Performance, Recreational, and Junior tennis players, Prince Sports is using a marketing strategy called

The effort and expense of segmentation should be undertaken by a business firm only when

Which of the following statements regarding when and how to segment markets is most accurate?

Which of the following statements about market segmentation for organizational markets is most accurate?

In the athletic shoe market, Adidas AG and Nike Inc. practice ________ positioning since both companies vie for the same customers with technologically advanced products.

The final step in segmenting and targeting markets that links customer needs to marketing actions is to

Which of these fast-food restaurants has the highest customer lifetime value?

Marketing synergies often come at the expense of product synergies because

According to an analysis of an Apple market-product grid for its personal computer line, Apple would get the least product synergies from the

Airlines have developed frequent-flyer programs to encourage passengers to use the same airline repeatedly. This marketing strategy is based on ________ segmentation.

Marketers use perceptual maps as a means to display in two dimensions the location of products or brands

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Developing New Products and Services

Managing Successful Products, Services, and Brands

Services Marketing

Building the Price Foundation

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multi-Channel Marketing

Pulling It All Together: the Strategic Marketing Proces

Building an Effective Marketing Plan

Financial Aspects of Marketing

Filters