Question 1

Describe the four general bases that are used to segment consumer markets.

Accepted Answer

The four general bases of segmentation a

Question 2

In its early years, Apple was often called "Camp Runamok" because

Accepted Answer

A)  every employee was encouraged to do his or her own thing. 
B)  it was concentrating on laptops while everyone else was concentrating on personal computers. 
C)  all the employees were so young, so they often played more than they worked. 
D)  there were no coherent product lines targeted at identifiable market segments. 
E)  its personal computers were running amok with viruses, spyware, and other problems. 
A)  every employee was encouraged to do his or her own thing. 
B)  it was concentrating on laptops while everyone else was concentrating on personal computers. 
C)  all the employees were so young, so they often played more than they worked. 
D)  there were no coherent product lines targeted at identifiable market segments. 
E)  its personal computers were running amok with viruses, spyware, and other problems.

Question 3

Segmentation based on where prospective customers live or work is referred to as

Accepted Answer

A)  zip code segmentation. 
B)  geographic segmentation. 
C)  trade area segmentation. 
D)  district segmentation. 
E)  NAICS code segmentation. 
A)  zip code segmentation. 
B)  geographic segmentation. 
C)  trade area segmentation. 
D)  district segmentation. 
E)  NAICS code segmentation.

Question 4

Tailoring products or services to the tastes of individual customers on a high-volume scale is

Accepted Answer

A)  family branding. 
B)  mass customization. 
C)  product differentiation. 
D)  economies of scale marketing. 
E)  build-to-order. 
A)  family branding. 
B)  mass customization. 
C)  product differentiation. 
D)  economies of scale marketing. 
E)  build-to-order.

Question 5

A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is a

Accepted Answer

A)  needs table. 
B)  cross-tabulation. 
C)  market-product grid. 
D)  growth-share matrix. 
E)  product differentiation table. 
A)  needs table. 
B)  cross-tabulation. 
C)  market-product grid. 
D)  growth-share matrix. 
E)  product differentiation table.

Question 6

Many companies have cut travel budgets so that fewer businesspeople are authorized to fly first class. Despite the shrinking pool of business-class travelers, British Airways has grown market share for its trans-Atlantic business class by offering greater comfort. Promotions to frequent flyers stress that passengers can sleep in fully reclining seats and arrive refreshed to carry out a full day's schedule. The segmentation strategy of British Airways is an example of

Accepted Answer

A)  life stage segmentation. 
B)  geographic segmentation. 
C)  social class segmentation. 
D)  behavioral segmentation. 
E)  psychographic segmentation. 
A)  life stage segmentation. 
B)  geographic segmentation. 
C)  social class segmentation. 
D)  behavioral segmentation. 
E)  psychographic segmentation.

Question 7

Determining the size of specific markets within a market-product grid is helpful in determining which target market segments to select and

Accepted Answer

A)  how to implement the 80-20 rule. 
B)  which products to group into meaningful categories. 
C)  how to implement a harvesting strategy. 
D)  which product groupings to offer. 
E)  which products to reposition. 
A)  how to implement the 80-20 rule. 
B)  which products to group into meaningful categories. 
C)  how to implement a harvesting strategy. 
D)  which product groupings to offer. 
E)  which products to reposition.

Question 8

Which of the following is an example of a multiple products, multiple market segments strategy?

Accepted Answer

A)  College Football magazine selects different covers for essentially the same written content in order to appeal to different geographic markets in the United States. 
B)  A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience. 
C)  Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo. 
D)  Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and cat litter boxes. 
E)  Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women. 
A)  College Football magazine selects different covers for essentially the same written content in order to appeal to different geographic markets in the United States. 
B)  A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience. 
C)  Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo. 
D)  Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and cat litter boxes. 
E)  Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Question 9

Which of the following is not a reason to segment a market?

Accepted Answer

A)  The ability to assign buyers to a segment is simple and cost-effective. 
B)  It would cause an increase in market share or profit. 
C)  All the buyers in the entire market have similar wants and needs. 
D)  There is a potential marketing action to reach it. 
E)  There are different wants and needs of buyers in the entire market. 
A)  The ability to assign buyers to a segment is simple and cost-effective. 
B)  It would cause an increase in market share or profit. 
C)  All the buyers in the entire market have similar wants and needs. 
D)  There is a potential marketing action to reach it. 
E)  There are different wants and needs of buyers in the entire market.

Question 10

You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50. Or you can buy a Hallmark card from its new $0.99 line of greeting cards, made with lesser-quality materials but just as sentimental, sold at Barnes & Noble bookstores. This is an example of

Accepted Answer

A)  mass customization. 
B)  organizational synergy. 
C)  one product and multiple market segments. 
D)  price discrimination. 
E)  a Tiffany/Walmart strategy. 
A)  mass customization. 
B)  organizational synergy. 
C)  one product and multiple market segments. 
D)  price discrimination. 
E)  a Tiffany/Walmart strategy.

Question 11

Which of the following is a basis used to segment U.S. organizational markets?

Accepted Answer

A)  behavioral 
B)  psychographic 
C)  income 
D)  prospects 
E)  education 
A)  behavioral 
B)  psychographic 
C)  income 
D)  prospects 
E)  education

Question 12

Which of the following statements best illustrates geographic segmentation?

Accepted Answer

A)  GE builds a downsized microwave oven to hang under kitchen cabinets. 
B)  Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners. 
C)  In China, KFC sells a spicier chicken at restaurants farther from the coastal areas. 
D)  A fast-food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays. 
E)  A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area. 
A)  GE builds a downsized microwave oven to hang under kitchen cabinets. 
B)  Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners. 
C)  In China, KFC sells a spicier chicken at restaurants farther from the coastal areas. 
D)  A fast-food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays. 
E)  A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area.

Question 13

Which of the following is an example of a multiple products, multiple market segments strategy?

Accepted Answer

A)  College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the United States. 
B)  A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience. 
C)  Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes. 
D)  Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens. 
E)  Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women. 
A)  College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the United States. 
B)  A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience. 
C)  Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes. 
D)  Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens. 
E)  Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Question 14

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 is referred to as

Accepted Answer

A)  market penetration. 
B)  points of difference. 
C)  market differentiation. 
D)  product positioning. 
E)  product differentiation. 
A)  market penetration. 
B)  points of difference. 
C)  market differentiation. 
D)  product positioning. 
E)  product differentiation.

Question 15

About 3 percent of the population has some degree of allergic reaction, usually mild, to preservatives used in salad bars. Restaurants might consider people with these allergies as a separate segment. To implement this segmentation strategy, restaurants would have to prepare a regular salad bar and a special salad bar for the allergies segment. This multiple product, multiple markets segment strategy would have the greatest difficulty meeting which of the following criteria used to form market segments?

Accepted Answer

A)  different needs of buyers among different segments 
B)  similarity of needs of potential buyers within a segment 
C)  simplicity and cost-effectiveness of assigning potential buyers to segments 
D)  potential for increased profit and ROI 
E)  potential of a marketing action to reach a segment 
A)  different needs of buyers among different segments 
B)  similarity of needs of potential buyers within a segment 
C)  simplicity and cost-effectiveness of assigning potential buyers to segments 
D)  potential for increased profit and ROI 
E)  potential of a marketing action to reach a segment

Question 16

Which of the following is a consumer market demographic segmentation variable?

Accepted Answer

A)  personality 
B)  age 
C)  usage rate 
D)  needs 
E)  region 
A)  personality 
B)  age 
C)  usage rate 
D)  needs 
E)  region

Question 17

One approach to positioning a product is ________ positioning, which involves competing directly with competitors on similar product attributes in the same target market.

Accepted Answer

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

Question 18

Procter & Gamble (P&G) decided to skip a generation of consumers when it began to market Old Spice deodorant. The target market consists of men aged 18 to 34 years old (Generation Y) who don't remember the Old Spice brand sold to their grandfathers many years ago. P&G is using which type of segmentation variable?

Accepted Answer

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

Question 19

The best segmentation approach for business firms is the one that

Accepted Answer

A)  makes it easiest to reach the segment. 
B)  maximizes the opportunity for future profit and ROI. 
C)  that differs from the most common approach within the industry. 
D)  creates awareness among potential buyers within a segment. 
E)  is simplest and least costly in assigning potential buyers to segments. 
A)  makes it easiest to reach the segment. 
B)  maximizes the opportunity for future profit and ROI. 
C)  that differs from the most common approach within the industry. 
D)  creates awareness among potential buyers within a segment. 
E)  is simplest and least costly in assigning potential buyers to segments.

Question 20

Grocery retailer Safeway displays the thousands of items it sells in aisles containing related items or product groupings such as the pet food aisle or the soft drink aisle. Why would Safeway display and sell product groupings in this manner?

Accepted Answer

A)  The groupings increase the number of market-product combinations on the market-product grid, which makes it a more manageable framework for subsequent analysis. 
B)  This form of product groupings makes it easier for customers to get in and out of the store more quickly, creating time utility. 
C)  The products are grouped so people can relate to them in a more meaningful way when they shop. 
D)  Product groupings can be generated quantitatively to show which adhere to the 80/20 rule. 
E)  Suppliers get preferential treatment based upon the number of different UPCs they provide. 
A)  The groupings increase the number of market-product combinations on the market-product grid, which makes it a more manageable framework for subsequent analysis. 
B)  This form of product groupings makes it easier for customers to get in and out of the store more quickly, creating time utility. 
C)  The products are grouped so people can relate to them in a more meaningful way when they shop. 
D)  Product groupings can be generated quantitatively to show which adhere to the 80/20 rule. 
E)  Suppliers get preferential treatment based upon the number of different UPCs they provide.

Exam 9: Market Segmentation, Targeting, and Positioning

Describe the four general bases that are used to segment consumer markets.

In its early years, Apple was often called "Camp Runamok" because

Segmentation based on where prospective customers live or work is referred to as

Tailoring products or services to the tastes of individual customers on a high-volume scale is

A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is a

Determining the size of specific markets within a market-product grid is helpful in determining which target market segments to select and

Which of the following is an example of a multiple products, multiple market segments strategy?

Which of the following is not a reason to segment a market?

You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50. Or you can buy a Hallmark card from its new $0.99 line of greeting cards, made with lesser-quality materials but just as sentimental, sold at Barnes & Noble bookstores. This is an example of

Which of the following is a basis used to segment U.S. organizational markets?

Which of the following statements best illustrates geographic segmentation?

Which of the following is an example of a multiple products, multiple market segments strategy?

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 is referred to as

Which of the following is a consumer market demographic segmentation variable?

One approach to positioning a product is ________ positioning, which involves competing directly with competitors on similar product attributes in the same target market.

The best segmentation approach for business firms is the one that

Grocery retailer Safeway displays the thousands of items it sells in aisles containing related items or product groupings such as the pet food aisle or the soft drink aisle. Why would Safeway display and sell product groupings in this manner?

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

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