Question 1

Why do marketers rely heavily on demographic characteristics when segmenting consumer markets?

Accepted Answer

Answer not provided.

Question 2

Dell segments its business markets into small business, corporate, government agencies, K-12 schools, and higher education institutions. The primary segmentation variable used in this example is

Accepted Answer

A) geographic location. 
B) type of organization. 
C) secondary product use. 
D) customer size. 
E) market potential. 
A) geographic location. 
B) type of organization. 
C) secondary product use. 
D) customer size. 
E) market potential. B

Question 3

DeShon has just become the new marketing analyst for a company that produces vinyl siding for homes. In an effort to forecast his firm's sales for the coming year, he needs to find where the greatest opportunities are for selling his product. DeShon looks at the sales for the last five years and calculates a growth trend. He then collects data from a combination of other factors, such as population density, family size, home ownership, and per capita income. Finally, DeShon looks at the correlation between the sales trend data and the various combination of demographic data. DeShon is employing the ____ forecasting method for the sales growth trend and the ________ method for the correlation.

Accepted Answer

A) Time series analysis; regression analysis 
B) Executive judgment; regression analysis 
C) Market tests; regression analysis 
D) Regression analysis; time series analysis 
E) Market tests; time series analysis 
A) Time series analysis; regression analysis 
B) Executive judgment; regression analysis 
C) Market tests; regression analysis 
D) Regression analysis; time series analysis 
E) Market tests; time series analysis A

Question 4

When using personality characteristics as a market segmentation variable, marketers generally

Accepted Answer

A) conduct personality assessments of their potential target market to determine which personality characteristics they possess. 
B) use research developed by clinical psychologists to determine which personality characteristics consumers using their products are most likely to have. 
C) use generic characteristics that all members of the population have. 
D) use a positively viewed characteristic they assume much of their target market has or would like to have. 
E) conduct a series of focus groups to determine both the positive and negative characteristics members of their target market are perceived to have. 
A) conduct personality assessments of their potential target market to determine which personality characteristics they possess. 
B) use research developed by clinical psychologists to determine which personality characteristics consumers using their products are most likely to have. 
C) use generic characteristics that all members of the population have. 
D) use a positively viewed characteristic they assume much of their target market has or would like to have. 
E) conduct a series of focus groups to determine both the positive and negative characteristics members of their target market are perceived to have.

Question 5

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to

Accepted Answer

A) allow an opportunity to obtain diverse expert opinions. 
B) allow experts to work separately to reach a consensus as to their forecasts. 
C) reach an accurate sales forecast through the use of multiple sales forecasting techniques. 
D) determine if the expert forecasting survey is superior to regression analysis. 
E) assess the extent to which this year's sales forecast is more accurate than that of previous years. 
A) allow an opportunity to obtain diverse expert opinions. 
B) allow experts to work separately to reach a consensus as to their forecasts. 
C) reach an accurate sales forecast through the use of multiple sales forecasting techniques. 
D) determine if the expert forecasting survey is superior to regression analysis. 
E) assess the extent to which this year's sales forecast is more accurate than that of previous years.

Question 6

Discuss the differences between the breakdown and buildup approaches to measuring company sales potential. What are the similarities between these two approaches?

Accepted Answer

The answer of Discuss the differences between the breakdown and...

Question 7

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 8

Scenario 6.1
Use the following to answer the questions.
Lil' 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, Lil' Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil' 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 Lil' 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 9

Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product?

Accepted Answer

A) Executive judgment 
B) Customer surveys 
C) Time series analysis 
D) Market tests 
E) Regression methods 
A) Executive judgment 
B) Customer surveys 
C) Time series analysis 
D) Market tests 
E) Regression methods

Question 10

Scenario 6.1
Use the following to answer the questions.
Lil' 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, Lil' Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil' 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. What method should Lil' Angels use to forecast sales in new regions?

Accepted Answer

A) Sales force survey 
B) Time series analysis 
C) Correlation method 
D) Market test 
E) Regression analysis 
A) Sales force survey 
B) Time series analysis 
C) Correlation method 
D) Market test 
E) Regression analysis

Question 11

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ____ variables.

Accepted Answer

A) marketing 
B) classification 
C) segmentation 
D) stratification 
E) dividing 
A) marketing 
B) classification 
C) segmentation 
D) stratification 
E) dividing

Question 12

Market segment profiles help determine the most desirable segment or segments in relation to the firm's strengths, weaknesses, objectives, and resources.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Mattel views the toy market as composed of four age groupings, each with different needs and desires. Mattel is using a(n) ____ targeting strategy for its groups, which are known as _____.

Accepted Answer

A) undifferentiated market; market segments 
B) undifferentiated market; heterogeneous. 
C) differentiated; market segments. 
D) differentiated; the marketing mix. 
E) concentrated market; heterogeneous. 
A) undifferentiated market; market segments 
B) undifferentiated market; heterogeneous. 
C) differentiated; market segments. 
D) differentiated; the marketing mix. 
E) concentrated market; heterogeneous.

Question 15

Justin Franklin's company is interested in locating areas where the average income is high, the average age range is 25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His company would most likely find possible markets through

Accepted Answer

A) U.S.Census Bureau information. 
B) geographic segmentation variables. 
C) geodemographic segmentation. 
D) climate information. 
E) psychographic segmentation. 
A) U.S.Census Bureau information. 
B) geographic segmentation variables. 
C) geodemographic segmentation. 
D) climate information. 
E) psychographic segmentation.

Question 16

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.

Question 17

Customer surveys as a means of forecasting sales are not appropriate for a firm that has relatively few customers.

Accepted Answer

A) True 
 B)False

Question 18

A disadvantage of the concentrated targeting strategy is that

Accepted Answer

A) the firm's financial condition is tied to a single and specialized marketing mix. 
B) large sales volumes cannot be generated. 
C) production costs may be higher than with other strategies. 
D) marketing personnel may become dissatisfied with the limited opportunities provided by this approach. 
E) marketing costs are often higher than for other strategies. 
A) the firm's financial condition is tied to a single and specialized marketing mix. 
B) large sales volumes cannot be generated. 
C) production costs may be higher than with other strategies. 
D) marketing personnel may become dissatisfied with the limited opportunities provided by this approach. 
E) marketing costs are often higher than for other strategies.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is

Accepted Answer

A) the regression method. 
B) customer forecasting. 
C) a market test. 
D) sales force forecasting. 
E) time series analysis. 
A) the regression method. 
B) customer forecasting. 
C) a market test. 
D) sales force forecasting. 
E) time series analysis.

Why do marketers rely heavily on demographic characteristics when segmenting consumer markets?

Dell segments its business markets into small business, corporate, government agencies, K-12 schools, and higher education institutions. The primary segmentation variable used in this example is

When using personality characteristics as a market segmentation variable, marketers generally

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to

Discuss the differences between the breakdown and buildup approaches to measuring company sales potential. What are the similarities between these two approaches?

Segmentation variables are usually grouped into four categories:

Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product?

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ____ variables.

Market segment profiles help determine the most desirable segment or segments in relation to the firm's strengths, weaknesses, objectives, and resources.

When evaluating market segments, assessment of competitors is important because

Mattel views the toy market as composed of four age groupings, each with different needs and desires. Mattel is using a(n) targeting strategy for its groups, which are known as _.

Justin Franklin's company is interested in locating areas where the average income is high, the average age range is 25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His company would most likely find possible markets through

Customer surveys as a means of forecasting sales are not appropriate for a firm that has relatively few customers.

A disadvantage of the concentrated targeting strategy is that

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

The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is

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

Developing and Managing Products

Services Marketing

Branding and Packaging

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

Why do marketers rely heavily on demographic characteristics when segmenting consumer markets?

Dell segments its business markets into small business, corporate, government agencies, K-12 schools, and higher education institutions. The primary segmentation variable used in this example is

When using personality characteristics as a market segmentation variable, marketers generally

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to

Discuss the differences between the breakdown and buildup approaches to measuring company sales potential. What are the similarities between these two approaches?

Segmentation variables are usually grouped into four categories:

Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product?

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ____ variables.

Market segment profiles help determine the most desirable segment or segments in relation to the firm's strengths, weaknesses, objectives, and resources.

When evaluating market segments, assessment of competitors is important because

Mattel views the toy market as composed of four age groupings, each with different needs and desires. Mattel is using a(n) ____ targeting strategy for its groups, which are known as _____.

Justin Franklin's company is interested in locating areas where the average income is high, the average age range is 25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His company would most likely find possible markets through

Customer surveys as a means of forecasting sales are not appropriate for a firm that has relatively few customers.

A disadvantage of the concentrated targeting strategy is that

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

The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is

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

Developing and Managing Products

Services Marketing

Branding and Packaging

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

Mattel views the toy market as composed of four age groupings, each with different needs and desires. Mattel is using a(n) targeting strategy for its groups, which are known as _.