Question 1

When evaluating market segments, assessment of competitors is important because

Accepted Answer

A)  it is difficult to segment a market when it has multiple competitors. 
B)  an absence of competitors usually creates difficulties in accurately measuring segment sales potential. 
C)  sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment. 
D)  a competitive analysis may lead to confusion as to who are the key competitors. 
E)  competition is generally not a major problem as long as a marketer is aware of it. 
A)  it is difficult to segment a market when it has multiple competitors. 
B)  an absence of competitors usually creates difficulties in accurately measuring segment sales potential. 
C)  sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment. 
D)  a competitive analysis may lead to confusion as to who are the key competitors. 
E)  competition is generally not a major problem as long as a marketer is aware of it.

Question 2

The Guitar Center is a music superstore selling instruments, sound equipment, lighting, as well as DJ, band, and orchestra products. The Guitar Center plans to continue its growth across the country by opening 15 to 20 new stores each year. The Guitar Center has recognized that it has several market segments, including professional musicians, DJ businesses, and consumers who purchase instruments for school band and orchestra. The company has developed a detailed description of these various customer segments. These detailed descriptions include information such as demographic characteristics-age, income, and education level-as well as an individual's preferences regarding what brands of instruments they purchase, how frequently they visit the store to make a purchase, how much time they spend in the store, and the percent of time they select The Guitar Center to make a purchase. What step in the target market selection process has The Guitar Center completed by describing their target market customers?

Accepted Answer

A)  Step 3: Develop Market Segment Profiles 
B)  Step 2: Determine Which Segmentation Variables to Use 
C)  Step 4: Evaluate Relevant Market Segments 
D)  Step 5: Select Specific Target Markets 
A)  Step 3: Develop Market Segment Profiles 
B)  Step 2: Determine Which Segmentation Variables to Use 
C)  Step 4: Evaluate Relevant Market Segments 
D)  Step 5: Select Specific Target Markets

Question 3

Which of the following is an example of a behavioristic segmentation variable?

Accepted Answer

A)  Family size 
B)  Climate 
C)  Age 
D)  Usage rate 
E)  Personality characteristics 
A)  Family size 
B)  Climate 
C)  Age 
D)  Usage rate 
E)  Personality characteristics

Question 4

Ride Snowboard Company was founded in 1992 and is now based in Seattle, Washington. The company estimates that snowboard enthusiasts typically spend about $600 annually on gear even though they only get on the slopes about 50 days a year. However, Ride products are available in markets where the typical customer can average 30 days on the slopes using their equipment, so Ride ensures that they have store outlets near ski resorts such as Colorado, Vermont, and Utah. What type of segmentation variable does Ride utilize when selecting locations for its retail outlets?

Accepted Answer

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

Question 5

The Sara Lee Company is attempting to forecast sales for a new ice cream cake. To come up with an accurate forecast, Sara Lee places the product in Atlanta supermarkets for a period of four months. In this instance, Sara Lee is using which forecasting method?

Accepted Answer

A)  Time series analysis 
B)  Market test 
C)  Executive judgment 
D)  Regression analysis 
E)  Survey 
A)  Time series analysis 
B)  Market test 
C)  Executive judgment 
D)  Regression analysis 
E)  Survey

Question 6

Which of the following products is most likely to be marketed using an undifferentiated approach?

Accepted Answer

A)  Bicycle 
B)  Computer 
C)  Notebook 
D)  Seasoning salt 
E)  Oscillating fan 
A)  Bicycle 
B)  Computer 
C)  Notebook 
D)  Seasoning salt 
E)  Oscillating fan

Question 7

The two general approaches to measuring company sales potential are the breakdown and the buildup approach.

Accepted Answer

A) True 
 B)False

Question 8

Segmentation variables are usually grouped into four categories:

Accepted Answer

A)  demographic, geographic, religion, and income. 
B)  geopolitical, income, behavioristic, and psychographic. 
C)  attitudes, lifestyles, behaviors, and gender. 
D)  geographic, demographic, psychographic, and attitudes. 
E)  demographic, geographic, psychographic, and behavioristic. 
A)  demographic, geographic, religion, and income. 
B)  geopolitical, income, behavioristic, and psychographic. 
C)  attitudes, lifestyles, behaviors, and gender. 
D)  geographic, demographic, psychographic, and attitudes. 
E)  demographic, geographic, psychographic, and behavioristic.

Question 9

One condition for effective segmentation is that at least one segment must have substantial profit potential.

Accepted Answer

A) True 
 B)False

Question 10

Sales forecasts are always long-range in nature.

Accepted Answer

A) True 
 B)False

Question 11

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ____ markets.

Accepted Answer

A)  consumer 
B)  business 
C)  government 
D)  international 
E)  most target 
A)  consumer 
B)  business 
C)  government 
D)  international 
E)  most target

Question 12

Scenario 6.1 Use the following to answer the questions.
Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Currently, Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services.
Refer to Scenario 6.1. In calculating the sales forecast for the next year, marketers at Angels use data from the past five years in order to identify any trends that surface. Additionally, marketers want to find out what family variables relate to those sales. Which of the following variables should the marketers use in relating to sales? What type of forecast method will they be using to relate the variables to sales trends?

Accepted Answer

A)  behavioristic; time series analysis 
B)  psychographic; time series analysis 
C)  demographic; regression analysis 
D)  income; regression analysis 
E)  family life cycle; market tests 
A)  behavioristic; time series analysis 
B)  psychographic; time series analysis 
C)  demographic; regression analysis 
D)  income; regression analysis 
E)  family life cycle; market tests

Question 13

Bethlehem Steel provides steel for a variety of uses to its various customers. Customers have different needs for the steel and thus Bethlehem has to prepare the raw steel differently depending on how customers will use it in their production processes. The primary business segmentation variable in this example is

Accepted Answer

A)  geographic location. 
B)  customer size. 
C)  product use. 
D)  customer importance. 
E)  organization classification. 
A)  geographic location. 
B)  customer size. 
C)  product use. 
D)  customer importance. 
E)  organization classification.

When evaluating market segments, assessment of competitors is important because

Which of the following is an example of a behavioristic segmentation variable?

The Sara Lee Company is attempting to forecast sales for a new ice cream cake. To come up with an accurate forecast, Sara Lee places the product in Atlanta supermarkets for a period of four months. In this instance, Sara Lee is using which forecasting method?

Which of the following products is most likely to be marketed using an undifferentiated approach?

The two general approaches to measuring company sales potential are the breakdown and the buildup approach.

Segmentation variables are usually grouped into four categories:

One condition for effective segmentation is that at least one segment must have substantial profit potential.

Sales forecasts are always long-range in nature.

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ____ markets.

An Overview of Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts, Branding, and Packaging

Developing and Managing Products

Services Marketing

Marketing Channels and Supply Chain Management

Retailing, Direct Marketing and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Setting Prices

Filters

Exam 6: Target Markets, Segmentation and Evaluation

When evaluating market segments, assessment of competitors is important because

Which of the following is an example of a behavioristic segmentation variable?

The Sara Lee Company is attempting to forecast sales for a new ice cream cake. To come up with an accurate forecast, Sara Lee places the product in Atlanta supermarkets for a period of four months. In this instance, Sara Lee is using which forecasting method?

Which of the following products is most likely to be marketed using an undifferentiated approach?

The two general approaches to measuring company sales potential are the breakdown and the buildup approach.

Segmentation variables are usually grouped into four categories:

One condition for effective segmentation is that at least one segment must have substantial profit potential.

Sales forecasts are always long-range in nature.

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ____ markets.

An Overview of Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts, Branding, and Packaging

Developing and Managing Products

Services Marketing

Marketing Channels and Supply Chain Management

Retailing, Direct Marketing and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Setting Prices

Filters