Question 1

Criteria for forming segments involve both similarities and differences. Which of the following statements is most accurate?

Accepted Answer

A) Within a segment, the needs of potential buyers should be different; among segments, the needs of buyers should be similar. 
B) Within a segment, the needs of potential buyers should be similar; among segments, the needs of buyers should be different. 
C) The needs of buyers should be different, both between segments and within segments. 
D) The needs of buyers should be the same, both between segments and within segments. 
E) If there are any differences at all, you should forgo any segmentation. 
A) Within a segment, the needs of potential buyers should be different; among segments, the needs of buyers should be similar. 
B) Within a segment, the needs of potential buyers should be similar; among segments, the needs of buyers should be different. 
C) The needs of buyers should be different, both between segments and within segments. 
D) The needs of buyers should be the same, both between segments and within segments. 
E) If there are any differences at all, you should forgo any segmentation.

Question 2

When compared to a multiple products, multiple market segments strategy, a one product, multiple market segment strategy

Accepted Answer

A) is a much more effective means of meeting consumers' individual needs. 
B) creates greater savings in production costs. 
C) is a more effective way of meeting organizational objectives. 
D) has significantly higher distribution costs. 
E) is more profitable since a firm can charge the new segments higher prices without changing the product. 
A) is a much more effective means of meeting consumers' individual needs. 
B) creates greater savings in production costs. 
C) is a more effective way of meeting organizational objectives. 
D) has significantly higher distribution costs. 
E) is more profitable since a firm can charge the new segments higher prices without changing the product.

Question 3

Usage rate refers to

Accepted Answer

A) the percentage of total possible users divided by the total number of consumers who actually use a product or service. 
B) the number of times a customer uses or recommends a product or service annually. 
C) quantity consumed or patronage (store visits) during a specific period. 
D) the maximum number of times a customer has used a product or service historically. 
E) the profits a firm earns from customers who consume a particular product or service. 
A) the percentage of total possible users divided by the total number of consumers who actually use a product or service. 
B) the number of times a customer uses or recommends a product or service annually. 
C) quantity consumed or patronage (store visits) during a specific period. 
D) the maximum number of times a customer has used a product or service historically. 
E) the profits a firm earns from customers who consume a particular product or service.

Question 4

The Zappos segmentation strategy is based on

Accepted Answer

A) offering the best selection of shoes and the best service to online shoppers. 
B) designing shoes for every type of occasion. 
C) dividing all their customers into two distinct segments: people shopping for low price and people shopping for style. 
D) offering the best selection of shoes through multiple channels of distribution. 
E) maintaining the simplest method of price points to make the purchase process easy. 
A) offering the best selection of shoes and the best service to online shoppers. 
B) designing shoes for every type of occasion. 
C) dividing all their customers into two distinct segments: people shopping for low price and people shopping for style. 
D) offering the best selection of shoes through multiple channels of distribution. 
E) maintaining the simplest method of price points to make the purchase process easy.

Question 5

Market segmentation involves aggregating prospective buyers into groups that __________ and will respond similarly to a marketing action.

Accepted Answer

A) respond similarly to marketing messages 
B) have similar shopping styles 
C) will become loyal customers 
D) have common needs 
E) will become stakeholders of the organization 
A) respond similarly to marketing messages 
B) have similar shopping styles 
C) will become loyal customers 
D) have common needs 
E) will become stakeholders of the organization

Question 6

In marketing, each __________ consists of people who are relatively similar to each other in terms of their consumption behavior.

Accepted Answer

A) demographic cluster 
B) organizational buyer group 
C) market segment 
D) ultimate consumer group 
E) qualified prospect group 
A) demographic cluster 
B) organizational buyer group 
C) market segment 
D) ultimate consumer group 
E) qualified prospect group

Question 7

Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as

Accepted Answer

A) consumer differentiation. 
B) psychographics. 
C) market segmentation. 
D) market delineation. 
E) aggregation marketing. 
A) consumer differentiation. 
B) psychographics. 
C) market segmentation. 
D) market delineation. 
E) aggregation marketing.

Question 8

Which of the following is a disadvantage of employing a multiple products, multiple market segments strategy if not implemented well?

Accepted Answer

A) higher sales but lower profits 
B) reduced quality and higher prices 
C) meeting customer needs but at the expense of higher prices 
D) lower prices but with higher production costs 
E) higher quality but lower prices 
A) higher sales but lower profits 
B) reduced quality and higher prices 
C) meeting customer needs but at the expense of higher prices 
D) lower prices but with higher production costs 
E) higher quality but lower prices

Question 9

Cannibalization would most likely occur if

Accepted Answer

A) Dell adds high-end speaker systems to its line. 
B) General Mills launches Caramel Crunch Cheerios. 
C) General Motors markets a motorcycle similar to the Can-Am Spyder Roadster three-wheel bike. 
D) Pillsbury adds boxed sugar to its product mix. 
E) Procter & Gamble adds a new line of baby clothing to its Pampers stable of products. 
A) Dell adds high-end speaker systems to its line. 
B) General Mills launches Caramel Crunch Cheerios. 
C) General Motors markets a motorcycle similar to the Can-Am Spyder Roadster three-wheel bike. 
D) Pillsbury adds boxed sugar to its product mix. 
E) Procter & Gamble adds a new line of baby clothing to its Pampers stable of products.

Question 10

About 3 percent of the population has some degree of allergic reaction, usually mild, to preservatives used in salad bars. Restaurants might consider people with these allergies as a separate segment. To implement this segmentation strategy, restaurants would have to prepare a regular salad bar and a special salad bar for the allergies segment. This multiple product, multiple market segment strategy would have the greatest difficulty meeting which of the following criteria used to form market segments?

Accepted Answer

A) different needs of buyers among different segments 
B) similarity of needs of potential buyers within a segment 
C) simplicity and cost-effectiveness of assigning potential buyers to segments 
D) potential for increased profit and ROI 
E) potential of a marketing action to reach a segment 
A) different needs of buyers among different segments 
B) similarity of needs of potential buyers within a segment 
C) simplicity and cost-effectiveness of assigning potential buyers to segments 
D) potential for increased profit and ROI 
E) potential of a marketing action to reach a segment

Question 11

Building open and honest relationships with communication is an example of one of Zappos'

Accepted Answer

A) target markets. 
B) best practices being adapted from its new owner, Amazon.com. 
C) 10 core values. 
D) supplier requirements. 
E) long-term goals. 
A) target markets. 
B) best practices being adapted from its new owner, Amazon.com. 
C) 10 core values. 
D) supplier requirements. 
E) long-term goals.

Question 12

Positioning that involves competing directly with competitors on similar product attributes in the same target market is referred to as

Accepted Answer

A) competitive repositioning. 
B) position downsizing. 
C) differentiation positioning. 
D) head-to-head positioning. 
E) product distinction positioning. 
A) competitive repositioning. 
B) position downsizing. 
C) differentiation positioning. 
D) head-to-head positioning. 
E) product distinction positioning.

Question 13

Assume you are manager of The Outback Steak House, a franchised restaurant that has opened at new location in St. Louis. Describe which segmentation base(s) and possible segmentation variable(s) you would use to segment its market and explain why each supports the appropriate market segmentation strategy.

Accepted Answer

Students should choose from the segmenta

Question 14

To create a market-product grid for bed pillows, the most effective way to segment the market would be using

Accepted Answer

A) the age of the sleeper: less than 18 years of age, 18 to 44 years of age, or 45 years and older. 
B) the sleeper's annual income: less than $25,000, $25,000 to $49,999, or $50,000 and over. 
C) the sleeper's gender: male or female. 
D) the time of sleep: day or night. 
E) how the sleeper sleeps: side, back, or stomach. 
A) the age of the sleeper: less than 18 years of age, 18 to 44 years of age, or 45 years and older. 
B) the sleeper's annual income: less than $25,000, $25,000 to $49,999, or $50,000 and over. 
C) the sleeper's gender: male or female. 
D) the time of sleep: day or night. 
E) how the sleeper sleeps: side, back, or stomach.

Question 15

Product differentiation refers to

Accepted Answer

A) a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs. 
B) the unique combination of product benefits received by targeted buyers. 
C) those characteristics of a product that make it superior to competitive substitutes. 
D) a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products. 
E) the legal requirement that requires a specified degree of distinction between products to ensure an organization's intellectual property rights. 
A) a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs. 
B) the unique combination of product benefits received by targeted buyers. 
C) those characteristics of a product that make it superior to competitive substitutes. 
D) a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products. 
E) the legal requirement that requires a specified degree of distinction between products to ensure an organization's intellectual property rights.

Question 16

A rehabilitation center wants to target women in their 20s who have received some permanent disability as the result of a skiing accident. In terms of the criteria used for selecting a target segment, this market may

Accepted Answer

A) have no expected growth. 
B) not be compatible with the company's current resources. 
C) not be worth doing since its market size is very small. 
D) not be readily accessible to the firm's marketing programs. 
E) be relatively expensive to reach. 
A) have no expected growth. 
B) not be compatible with the company's current resources. 
C) not be worth doing since its market size is very small. 
D) not be readily accessible to the firm's marketing programs. 
E) be relatively expensive to reach.

Question 17

Frequency marketing is a strategy that focuses on

Accepted Answer

A) demographics. 
B) benefits offered. 
C) usage rate. 
D) geography. 
E) lifestyle. 
A) demographics. 
B) benefits offered. 
C) usage rate. 
D) geography. 
E) lifestyle.

Question 18

Selling a product to a different market segment usually requires a different marketing action that, in turn, means greater costs. If increased revenues don't offset extra costs of this action, a marketer should

Accepted Answer

A) increase the advertising budget. 
B) prune the product offerings. 
C) family brand the products. 
D) combine segments. 
E) group products into categories. 
A) increase the advertising budget. 
B) prune the product offerings. 
C) family brand the products. 
D) combine segments. 
E) group products into categories.

Question 19

Which of the following is not a reason to segment a market?

Accepted Answer

A) The ability to assign buyers to a segment is simple and cost-effective. 
B) It would cause an increase in market share or profit. 
C) All the buyers in the entire market have similar wants and needs. 
D) There is a potential marketing action to reach it. 
E) There are different wants and needs of buyers in the entire market. 
A) The ability to assign buyers to a segment is simple and cost-effective. 
B) It would cause an increase in market share or profit. 
C) All the buyers in the entire market have similar wants and needs. 
D) There is a potential marketing action to reach it. 
E) There are different wants and needs of buyers in the entire market.

Question 20

Marketers use perceptual maps as a means to display or graph in two dimensions the location of products or brands

Accepted Answer

A) against large market segments in a market-product grid. 
B) against small market segments in a market-product grid. 
C) in virtual space that represents the business or product's time in existence and growth. 
D) in the minds of consumers. 
E) against the revenues generated by other products or brands within the company. 
A) against large market segments in a market-product grid. 
B) against small market segments in a market-product grid. 
C) in virtual space that represents the business or product's time in existence and growth. 
D) in the minds of consumers. 
E) against the revenues generated by other products or brands within the company.

Exam 9: Market Segmentation Targeting and Positioning

Criteria for forming segments involve both similarities and differences. Which of the following statements is most accurate?

When compared to a multiple products, multiple market segments strategy, a one product, multiple market segment strategy

Usage rate refers to

The Zappos segmentation strategy is based on

Market segmentation involves aggregating prospective buyers into groups that __________ and will respond similarly to a marketing action.

In marketing, each __________ consists of people who are relatively similar to each other in terms of their consumption behavior.

Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as

Which of the following is a disadvantage of employing a multiple products, multiple market segments strategy if not implemented well?

Cannibalization would most likely occur if

Building open and honest relationships with communication is an example of one of Zappos'

Positioning that involves competing directly with competitors on similar product attributes in the same target market is referred to as

To create a market-product grid for bed pillows, the most effective way to segment the market would be using

Product differentiation refers to

A rehabilitation center wants to target women in their 20s who have received some permanent disability as the result of a skiing accident. In terms of the criteria used for selecting a target segment, this market may

Frequency marketing is a strategy that focuses on

Selling a product to a different market segment usually requires a different marketing action that, in turn, means greater costs. If increased revenues don't offset extra costs of this action, a marketer should

Which of the following is not a reason to segment a market?

Marketers use perceptual maps as a means to display or graph in two dimensions the location of products or brands

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Developing New Products and Services

Managing Successful Products Services and Brands

Services Marketing

Building the Price Foundation

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising Sales Promotion and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Pulling It All Together: the Strategic Marketing Process

Financial Aspects of Marketing

Building an Effective Marketing Plan

Filters