Question 1

Targeting large customers may not be profitable because

Accepted Answer

A)  of higher sales volumes. 
B)  of their attractiveness. 
C)  they may be more expensive to serve. 
D)  of demographic variables. 
E)  of psychographic variables. 
A)  of higher sales volumes. 
B)  of their attractiveness. 
C)  they may be more expensive to serve. 
D)  of demographic variables. 
E)  of psychographic variables.

Question 2

If not all customers are created equal, then explain how they differ.

Accepted Answer

Customers differ based on four

Question 3

In addition to customer needs in the segmentation effort, businesses must also look at

Accepted Answer

A)  customer attractiveness. 
B)  the competition. 
C)  geographic location. 
D)  ethnographies. 
E)  sales execution strategies. 
A)  customer attractiveness. 
B)  the competition. 
C)  geographic location. 
D)  ethnographies. 
E)  sales execution strategies.

Question 4

Although customer needs change over time, market segments tend to stay relevant.

Accepted Answer

A) True 
 B)False

Question 5

Segmenting and targeting customers enables a business to dramatically

Accepted Answer

A)  expand its distribution. 
B)  increase its advertising spending. 
C)  improve its profitability. 
D)  expand product development. 
E)  increase market share. 
A)  expand its distribution. 
B)  increase its advertising spending. 
C)  improve its profitability. 
D)  expand product development. 
E)  increase market share.

Question 6

One of the common pitfalls in market segmentation is

Accepted Answer

A)  segmenting by product, not by market. 
B)  always using a different segmentation approach. 
C)  using a different segmentation strategy than competitors. 
D)  never targeting the largest segment. 
E)  understanding that segments change. 
A)  segmenting by product, not by market. 
B)  always using a different segmentation approach. 
C)  using a different segmentation strategy than competitors. 
D)  never targeting the largest segment. 
E)  understanding that segments change.

Question 7

By dividing the entire industry into domestic customers and export customers, Arbol Industries was basing its segmentation on

Accepted Answer

A)  demographic variables. 
B)  geography. 
C)  psychographic variables. 
D)  the VALS program. 
E)  sales history. 
A)  demographic variables. 
B)  geography. 
C)  psychographic variables. 
D)  the VALS program. 
E)  sales history.

Question 8

A method of classifying individuals into nine psychological types based on their lifestyles, attitudes, interests, and personality is known as

Accepted Answer

A)  the market segmentation plan. 
B)  the Value and Lifestyles (VALS) program. 
C)  geographic segmentation. 
D)  demographic variable segmentation. 
E)  mass marketing. 
A)  the market segmentation plan. 
B)  the Value and Lifestyles (VALS) program. 
C)  geographic segmentation. 
D)  demographic variable segmentation. 
E)  mass marketing.

Question 9

Business success depends on segmenting markets in a way that is

Accepted Answer

A)  based on marketing research. 
B)  determined by the sales function. 
C)  different from competitors. 
D)  based on geographic distribution. 
E)  determined by the marketing function. 
A)  based on marketing research. 
B)  determined by the sales function. 
C)  different from competitors. 
D)  based on geographic distribution. 
E)  determined by the marketing function.

Question 10

The business world has seen an explosion of

Accepted Answer

A)  advertising agencies. 
B)  research firms. 
C)  websites. 
D)  competitors. 
E)  customer segments. 
A)  advertising agencies. 
B)  research firms. 
C)  websites. 
D)  competitors. 
E)  customer segments.

Question 11

In business-to-consumer markets, demographic segmentation would look at factors such as

Accepted Answer

A)  buying behaviours. 
B)  attitudes. 
C)  beliefs. 
D)  opinions. 
E)  income. 
A)  buying behaviours. 
B)  attitudes. 
C)  beliefs. 
D)  opinions. 
E)  income.

Question 12

Without market segmentation, salespeople

Accepted Answer

A)  do not know what to offer customers. 
B)  increase prices. 
C)  charge for the value they create. 
D)  withhold too much from the customer. 
E)  determine the marketing communications strategy. 
A)  do not know what to offer customers. 
B)  increase prices. 
C)  charge for the value they create. 
D)  withhold too much from the customer. 
E)  determine the marketing communications strategy.

Question 13

To overcome the limitations of demographics as a segmentation variable, researchers turned to

Accepted Answer

A)  geographic segmentation. 
B)  income segmentation. 
C)  age segmentation. 
D)  gender segmentation. 
E)  psychographic segmentation. 
A)  geographic segmentation. 
B)  income segmentation. 
C)  age segmentation. 
D)  gender segmentation. 
E)  psychographic segmentation.

Question 14

Dell's pioneering the direct-to-customer model of selling computers is a good example of

Accepted Answer

A)  over-segmenting. 
B)  segmenting by product, not market. 
C)  a complex segmentation approach. 
D)  investing in emerging segments. 
E)  segmenting differently from competitors. 
A)  over-segmenting. 
B)  segmenting by product, not market. 
C)  a complex segmentation approach. 
D)  investing in emerging segments. 
E)  segmenting differently from competitors.

Question 15

Market segmentation has a profound impact on

Accepted Answer

A)  the rest of the organization. 
B)  competitive activity. 
C)  emerging markets. 
D)  new product development. 
E)  the size of the target group. 
A)  the rest of the organization. 
B)  competitive activity. 
C)  emerging markets. 
D)  new product development. 
E)  the size of the target group.

Question 16

What is the Values and Lifestyles (VALS) program?

Accepted Answer

The VALS program is a method of classify

Question 17

If a health clinic decides to offer one-on-one prenatal counselling to every expectant couple regardless of customer needs, it is

Accepted Answer

A)  wasting resources. 
B)  creating value for the customer. 
C)  segmenting its customers. 
D)  devising a positioning strategy. 
E)  saving time and resources. 
A)  wasting resources. 
B)  creating value for the customer. 
C)  segmenting its customers. 
D)  devising a positioning strategy. 
E)  saving time and resources.

Question 18

The Body Shop gained a competitive advantage in combining profits with ethics when its segmentation efforts uncovered

Accepted Answer

A)  an emerging segment. 
B)  a customer need. 
C)  a changing segment. 
D)  the largest segment. 
E)  a product segment. 
A)  an emerging segment. 
B)  a customer need. 
C)  a changing segment. 
D)  the largest segment. 
E)  a product segment.

Question 19

What are the three basic principles of market segmentation?

Accepted Answer

1. A business exists to be profitable. S

Question 20

MasterCard's priceless message was intended to target the end-user who feels that everything is becoming commoditized and that companies treat customers as mere numbers on a credit card.

Accepted Answer

A) True 
 B)False

Exam 31: Choosing Which Customers to Serve

Targeting large customers may not be profitable because

If not all customers are created equal, then explain how they differ.

In addition to customer needs in the segmentation effort, businesses must also look at

Although customer needs change over time, market segments tend to stay relevant.

Segmenting and targeting customers enables a business to dramatically

One of the common pitfalls in market segmentation is

By dividing the entire industry into domestic customers and export customers, Arbol Industries was basing its segmentation on

A method of classifying individuals into nine psychological types based on their lifestyles, attitudes, interests, and personality is known as

Business success depends on segmenting markets in a way that is

The business world has seen an explosion of

In business-to-consumer markets, demographic segmentation would look at factors such as

Without market segmentation, salespeople

To overcome the limitations of demographics as a segmentation variable, researchers turned to

Dell's pioneering the direct-to-customer model of selling computers is a good example of

Market segmentation has a profound impact on

What is the Values and Lifestyles (VALS) program?

If a health clinic decides to offer one-on-one prenatal counselling to every expectant couple regardless of customer needs, it is

The Body Shop gained a competitive advantage in combining profits with ethics when its segmentation efforts uncovered

What are the three basic principles of market segmentation?

MasterCard's priceless message was intended to target the end-user who feels that everything is becoming commoditized and that companies treat customers as mere numbers on a credit card.

Microbial Life: Origin and Discovery

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Environmental Influences and Control of Microbial Growth

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