Question 1

Swatch aims its watches at the consumer group that is concerned with fashion at a reasonable price. This target market represents a

Accepted Answer

A)  consumer lifestyle segment. 
B)  heavy-half segment. 
C)  personal demographic segment. 
D) benefit segment. 
A)  consumer lifestyle segment. 
B)  heavy-half segment. 
C)  personal demographic segment. 
D) benefit segment.

Question 2

According to the majority fallacy concept,

Accepted Answer

A)  a differentiated marketing strategy may direct a company's energies toward too many segments. 
B)  the smallest segment, not the largest, may be the most brand loyal. 
C)  per-unit profits are always the highest in undifferentiated marketing. 
D)  the largest market segment may not be the best for a firm to seek out due to its high degree of competition. 
A)  a differentiated marketing strategy may direct a company's energies toward too many segments. 
B)  the smallest segment, not the largest, may be the most brand loyal. 
C)  per-unit profits are always the highest in undifferentiated marketing. 
D)  the largest market segment may not be the best for a firm to seek out due to its high degree of competition.

Question 3

a.	Which methods of sales forecasting are best suited for a new product? Explain your answer.
b. Which methods of sales forecasting are best suited for an existing product with at least a 7-year sales history? Explain your answer.

Accepted Answer

a. When forecasting sales for a new prod

Question 4

A group accounts for a disproportionately large portion of a product's usage relative to the group's size. This illustrates

Accepted Answer

A)  a lifestyle segment. 
B)  the heavy half. 
C)  personal demographics. 
D)  the experience curve. 
A)  a lifestyle segment. 
B)  the heavy half. 
C)  personal demographics. 
D)  the experience curve.

Question 5

Consumer profiles identify potential segments by aggregating consumers with similar characteristics and needs and separating them from consumers with different characteristics and needs.

Accepted Answer

A) True 
 B)False

Question 6

Like the sales force survey method of forecasting, the market buildup method gathers data from small units and then aggregates them.

Accepted Answer

A) True 
 B)False

Question 7

What target market approach is quite popular for firms seeking to be specialists?

Accepted Answer

A)  Differentiated marketing 
B)  Concentrated marketing 
C)  Undifferentiated marketing 
D)  Mass marketing 
A)  Differentiated marketing 
B)  Concentrated marketing 
C)  Undifferentiated marketing 
D)  Mass marketing

Question 8

The market for calculators can be divided into distinct consumer segments such as desktop versus pocket-sized and printing versus nonprinting. The demand pattern can most accurately be characterized as

Accepted Answer

A)  diffused. 
B)  heterogeneous. 
C)  differentiated. 
D)  clustered. 
A)  diffused. 
B)  heterogeneous. 
C)  differentiated. 
D)  clustered.

Question 9

Brand loyalty and usage rate are examples of consumer personal demographic segmentation variables.

Accepted Answer

A) True 
 B)False

Question 10

The heavy-half theory would be useful for a company deciding whether or not it is worthwhile to try to modify a homogeneous consumer demand pattern to a clustered pattern.

Accepted Answer

A) True 
 B)False

Question 11

Research on mouthwash users finds three market segments: plaque-conscious (concerned with gum health), sociables (concerned with freshness of breath), and germ control (concerned with killing germs). This study illustrates which form of segmentation?

Accepted Answer

A)  Family life cycle segmentation 
B)  Heavy-half segmentation 
C)  Benefit segmentation
D ) Demographic segmentation 
A)  Family life cycle segmentation 
B)  Heavy-half segmentation 
C)  Benefit segmentation
D ) Demographic segmentation

Question 12

A firm links changes in sales to such variables as gross domestic product, interest rates, and replacement demand. It is utilizing

Accepted Answer

A)  complex trend analysis. 
B)  the chain-ratio method. 
C)  regression. 
D)  simple trend analysis. 
A)  complex trend analysis. 
B)  the chain-ratio method. 
C)  regression. 
D)  simple trend analysis.

Question 13

Which target market approach is most compatible with a homogeneous demand pattern?

Accepted Answer

A)  Clustered marketing 
B)  Concentrated marketing 
C)  Differentiated marketing 
D)  Undifferentiated marketing 
A)  Clustered marketing 
B)  Concentrated marketing 
C)  Differentiated marketing 
D)  Undifferentiated marketing

Question 14

The first step in undertaking a target market strategy is to

Accepted Answer

A)  analyze consumer demand. 
B)  develop a target market strategy. 
C)  establish possible bases of segmentation. 
D)  target the market. 
A)  analyze consumer demand. 
B)  develop a target market strategy. 
C)  establish possible bases of segmentation. 
D)  target the market.

Question 15

In differentiated marketing, a firm typically aims its product at the mass market.

Accepted Answer

A) True 
 B)False

Question 16

Profiles of market segments could be based on demographic, as well as lifestyle characteristics.

Accepted Answer

A) True 
 B)False

Question 17

A firm seeks to develop a differential advantage through

Accepted Answer

A)  mass marketing. 
B)  differentiated marketing. 
C)  undifferentiated marketing. 
D)  product differentiation. 
A)  mass marketing. 
B)  differentiated marketing. 
C)  undifferentiated marketing. 
D)  product differentiation.

Question 18

An arts and crafts goods retailer decides to concentrate on advanced amateurs versus typical consumers. Which segmentation base is the retailer using?

Accepted Answer

A)  VALS 2 
B)  Class consciousness 
C)  VALS 
D)  Heavy-usage segmentation 
A)  VALS 2 
B)  Class consciousness 
C)  VALS 
D)  Heavy-usage segmentation

Question 19

The chain-ratio method and market buildup method are both considered to be simple techniques for sales forecasting.

Accepted Answer

A) True 
 B)False

Question 20

Which target market approach is most compatible with a clustered demand pattern?

Accepted Answer

A)  Undifferentiated marketing 
B)  Concentrated marketing 
C)  Differentiated marketing 
D)  Clustered marketing 
A)  Undifferentiated marketing 
B)  Concentrated marketing 
C)  Differentiated marketing 
D)  Clustered marketing

Exam 10: Developing a Target Market Strategy

Swatch aims its watches at the consumer group that is concerned with fashion at a reasonable price. This target market represents a

According to the majority fallacy concept,

a. Which methods of sales forecasting are best suited for a new product? Explain your answer. b. Which methods of sales forecasting are best suited for an existing product with at least a 7-year sales history? Explain your answer.

A group accounts for a disproportionately large portion of a product's usage relative to the group's size. This illustrates

Consumer profiles identify potential segments by aggregating consumers with similar characteristics and needs and separating them from consumers with different characteristics and needs.

Like the sales force survey method of forecasting, the market buildup method gathers data from small units and then aggregates them.

What target market approach is quite popular for firms seeking to be specialists?

The market for calculators can be divided into distinct consumer segments such as desktop versus pocket-sized and printing versus nonprinting. The demand pattern can most accurately be characterized as

Brand loyalty and usage rate are examples of consumer personal demographic segmentation variables.

The heavy-half theory would be useful for a company deciding whether or not it is worthwhile to try to modify a homogeneous consumer demand pattern to a clustered pattern.

Research on mouthwash users finds three market segments: plaque-conscious (concerned with gum health), sociables (concerned with freshness of breath), and germ control (concerned with killing germs). This study illustrates which form of segmentation?

A firm links changes in sales to such variables as gross domestic product, interest rates, and replacement demand. It is utilizing

Which target market approach is most compatible with a homogeneous demand pattern?

The first step in undertaking a target market strategy is to

In differentiated marketing, a firm typically aims its product at the mass market.

Profiles of market segments could be based on demographic, as well as lifestyle characteristics.

A firm seeks to develop a differential advantage through

An arts and crafts goods retailer decides to concentrate on advanced amateurs versus typical consumers. Which segmentation base is the retailer using?

The chain-ratio method and market buildup method are both considered to be simple techniques for sales forecasting.

Which target market approach is most compatible with a clustered demand pattern?

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