Question 1

Which of these is the most complex method of sales forecasting from a statistical perspective?

Accepted Answer

A)  The chain-ratio method 
B)  The market buildup method 
C)  Test marketing 
D)  Simulation 
A)  The chain-ratio method 
B)  The market buildup method 
C)  Test marketing 
D)  Simulation

Question 2

Any segmentation base can be analyzed from the perspective of single attributes or profiles.

Accepted Answer

A) True 
 B)False

Question 3

The jury of executive (expert) opinion, sales force survey, and test marketing forecasting techniques are especially useful in forecasting sales of established products.

Accepted Answer

A) True 
 B)False

Question 4

Which strategy has the greatest threat of a blurred brand image?

Accepted Answer

A)  Product differentiation 
B)  Benefit segmentation 
C)  Differentiated marketing 
D)  Undifferentiated marketing 
A)  Product differentiation 
B)  Benefit segmentation 
C)  Differentiated marketing 
D)  Undifferentiated marketing

Question 5

A liquid soap manufacturer produces soap in 7.5-ounce containers for household use and in 1-gallon containers for restaurants. The film manufacturer is using a concentrated marketing strategy.

Accepted Answer

A) True 
 B)False

Question 6

According to the Social Styles model, expressives are high in both assertiveness and responsiveness.

Accepted Answer

A) True 
 B)False

Question 7

A product's degree of product differentiation has no effect on a marketer's degree of latitude in pricing.

Accepted Answer

A) True 
 B)False

Question 8

The basic identifiable characteristics of individual final and organizational consumers and groups of final and organizational consumers are studied in

Accepted Answer

A)  consumer demographics. 
B)  geographic demographics. 
C)  personal demographics. 
D)  population demographics. 
A)  consumer demographics. 
B)  geographic demographics. 
C)  personal demographics. 
D)  population demographics.

Question 9

Industry sales for the year are expected to be 4,000,000 units. A company estimates its sales potential at 1,500,000 units, but actually sold 1,200,000 units. The company's sales penetration rate is 30 percent.

Accepted Answer

A) True 
 B)False

Question 10

A firm wishing to segment a market on the basis of benefit segmentation needs to carefully study

Accepted Answer

A)  how perceived risk varies by segment. 
B)  usage experience of different groups. 
C)  consumer lifestyles by segment. 
D)  consumers' purchase motives. 
A)  how perceived risk varies by segment. 
B)  usage experience of different groups. 
C)  consumer lifestyles by segment. 
D)  consumers' purchase motives.

Question 11

A firm can avoid the majority fallacy by

Accepted Answer

A)  focusing on saturated geographic markets. 
B)  concentrating on the large-sized markets. 
C)  avoiding large-sized markets. 
D)  evaluating the number and quality of competitors in each market relative to the market's size. 
A)  focusing on saturated geographic markets. 
B)  concentrating on the large-sized markets. 
C)  avoiding large-sized markets. 
D)  evaluating the number and quality of competitors in each market relative to the market's size.

Question 12

Which sales forecasting technique is most appropriate for a firm that is concerned about the impact of such factors as economic conditions and sales fluctuations on sales?

Accepted Answer

A)  Complex trend analysis 
B)  Simple trend analysis 
C)  Chain-ratio method 
D)  Market buildup method 
A)  Complex trend analysis 
B)  Simple trend analysis 
C)  Chain-ratio method 
D)  Market buildup method

Question 13

In both undifferentiated marketing and concentrated marketing, a firm would utilize a single marketing plan.

Accepted Answer

A) True 
 B)False

Question 14

A firm decides to appeal to the mass market with one brand designation and to a specialized market segment with another brand. The firm is using

Accepted Answer

A)  differentiated marketing. 
B)  benefit segmentation. . 
C)  concentrated marketing. 
D)  undifferentiated marketing 
A)  differentiated marketing. 
B)  benefit segmentation. . 
C)  concentrated marketing. 
D)  undifferentiated marketing

Question 15

A personal computer retailer offers free courses to first-time computer buyers. In addition, all buyers are offered low-cost extended warranties and free loaner computers during repairs. The retailer has attracted a loyal customer following despite above-average prices. This firm is involved with

Accepted Answer

A)  product differentiation. 
B)  concentrated marketing. 
C)  differentiated marketing. 
D)  market segmentation. 
A)  product differentiation. 
B)  concentrated marketing. 
C)  differentiated marketing. 
D)  market segmentation.

Question 16

By developing too many product alternatives, a marketer can oversegment its market. By oversegmenting the market, opportunities for additional sales are small, while overall costs and consumer confusion may rise significantly.

Accepted Answer

A) True 
 B)False

Question 17

Which of these statements about the VALS 2 typology is NOT correct?

Accepted Answer

A)  It places consumers into segments based on their innovation and resources. 
B)  It seeks to explain why and how consumers make purchase decisions. 
C)  It had to be tailored to fit the Japanese culture. 
D)  It can be used to explain organizational consumer behavior. 
A)  It places consumers into segments based on their innovation and resources. 
B)  It seeks to explain why and how consumers make purchase decisions. 
C)  It had to be tailored to fit the Japanese culture. 
D)  It can be used to explain organizational consumer behavior.

Question 18

A manufacturer is concerned that its employees may understate a new product's sales potential so it keys advertising in a territory to the sales forecast. Which sales forecasting is the firm using?

Accepted Answer

A)  Detailed statistical analysis 
B)  Sales force survey 
C)  Simple trend analysis 
D)  Complex trend analysis 
A)  Detailed statistical analysis 
B)  Sales force survey 
C)  Simple trend analysis 
D)  Complex trend analysis

Question 19

Which statement about the heavy-half theory is NOT correct?

Accepted Answer

A)  Less than 20 percent of a market can account for 80 percent or more of a product's purchases. 
B)  The heavy-half theory does not apply to organizational consumers. 
C)  The heavy-half segment may have greater competition than light-usage segments. 
D)  The heavy-half segment may require different product attributes than regular or light-usage segments. 
A)  Less than 20 percent of a market can account for 80 percent or more of a product's purchases. 
B)  The heavy-half theory does not apply to organizational consumers. 
C)  The heavy-half segment may have greater competition than light-usage segments. 
D)  The heavy-half segment may require different product attributes than regular or light-usage segments.

Question 20

Undifferentiated marketing is most effective when demand is

Accepted Answer

A)  clustered. 
B)  diffused. 
C)  homogeneous. 
D)  concentrated. 
A)  clustered. 
B)  diffused. 
C)  homogeneous. 
D)  concentrated.

Exam 10: Developing a Target Market Strategy

Which of these is the most complex method of sales forecasting from a statistical perspective?

Any segmentation base can be analyzed from the perspective of single attributes or profiles.

The jury of executive (expert) opinion, sales force survey, and test marketing forecasting techniques are especially useful in forecasting sales of established products.

Which strategy has the greatest threat of a blurred brand image?

A liquid soap manufacturer produces soap in 7.5-ounce containers for household use and in 1-gallon containers for restaurants. The film manufacturer is using a concentrated marketing strategy.

According to the Social Styles model, expressives are high in both assertiveness and responsiveness.

A product's degree of product differentiation has no effect on a marketer's degree of latitude in pricing.

The basic identifiable characteristics of individual final and organizational consumers and groups of final and organizational consumers are studied in

Industry sales for the year are expected to be 4,000,000 units. A company estimates its sales potential at 1,500,000 units, but actually sold 1,200,000 units. The company's sales penetration rate is 30 percent.

A firm wishing to segment a market on the basis of benefit segmentation needs to carefully study

A firm can avoid the majority fallacy by

Which sales forecasting technique is most appropriate for a firm that is concerned about the impact of such factors as economic conditions and sales fluctuations on sales?

In both undifferentiated marketing and concentrated marketing, a firm would utilize a single marketing plan.

A firm decides to appeal to the mass market with one brand designation and to a specialized market segment with another brand. The firm is using

A personal computer retailer offers free courses to first-time computer buyers. In addition, all buyers are offered low-cost extended warranties and free loaner computers during repairs. The retailer has attracted a loyal customer following despite above-average prices. This firm is involved with

By developing too many product alternatives, a marketer can oversegment its market. By oversegmenting the market, opportunities for additional sales are small, while overall costs and consumer confusion may rise significantly.

Which of these statements about the VALS 2 typology is NOT correct?

A manufacturer is concerned that its employees may understate a new product's sales potential so it keys advertising in a territory to the sales forecast. Which sales forecasting is the firm using?

Which statement about the heavy-half theory is NOT correct?

Undifferentiated marketing is most effective when demand is

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