Question 1

According to Tony Hsieh, CEO of Zappos, the company devotes the greatest amount of time to

Accepted Answer

A) seeking new and unusual styles of shoes from all over the world. 
B) improving the website to make it faster, more interesting, and fun. 
C) seeking new markets that will go beyond the Internet. 
D) finding the fastest and least expensive modes of delivery for its products. 
E) finding ways to improve customer service levels. 
A) seeking new and unusual styles of shoes from all over the world. 
B) improving the website to make it faster, more interesting, and fun. 
C) seeking new markets that will go beyond the Internet. 
D) finding the fastest and least expensive modes of delivery for its products. 
E) finding ways to improve customer service levels.

Question 2

Product features and usage rate are both variables used to employ __________ segmentation.

Accepted Answer

A) geographic 
B) demographic 
C) loyalty 
D) psychographic 
E) behavioral 
A) geographic 
B) demographic 
C) loyalty 
D) psychographic 
E) behavioral

Question 3

Tony Hsieh invested in the company Zappos and

Accepted Answer

A) immediately changed its product mix. 
B) helped to develop its segmentation strategy. 
C) focused on value-oriented customers. 
D) focused on unknown brands. 
E) helped to shift to a more transactional focus. 
A) immediately changed its product mix. 
B) helped to develop its segmentation strategy. 
C) focused on value-oriented customers. 
D) focused on unknown brands. 
E) helped to shift to a more transactional focus.

Question 4

ExxonMobil targets consumers that fill up their gas tanks more than once a week with its Chase Visa fuel card. In this example, ExxonMobil is using which segmentation variable?

Accepted Answer

A) needs 
B) lifestyle 
C) behavioral 
D) psychographic 
E) demographic 
A) needs 
B) lifestyle 
C) behavioral 
D) psychographic 
E) demographic

Question 5

Market segments refers to

Accepted Answer

A) the relatively heterogeneous groups of prospective buyers that result from the market segmentation process. 
B) all buyers of a product or service who have previously purchased a particular firm's products or services and who intend to repeat that purchase sometime in the future. 
C) the smallest number of buyers that have similar needs but do not react similarly in a buying situation. 
D) the relatively homogenous groups of prospective buyers that result from the market segmentation process. 
E) all potential buyers of a product or service who intend to purchase a firm's products or services but who have not yet done so. 
A) the relatively heterogeneous groups of prospective buyers that result from the market segmentation process. 
B) all buyers of a product or service who have previously purchased a particular firm's products or services and who intend to repeat that purchase sometime in the future. 
C) the smallest number of buyers that have similar needs but do not react similarly in a buying situation. 
D) the relatively homogenous groups of prospective buyers that result from the market segmentation process. 
E) all potential buyers of a product or service who intend to purchase a firm's products or services but who have not yet done so.

Question 6

The quantity consumed or patronage (store visits) during a specific period is referred to as

Accepted Answer

A) usage rate. 
B) purchase metric. 
C) consumption index. 
D) consumption rate. 
E) demand amount. 
A) usage rate. 
B) purchase metric. 
C) consumption index. 
D) consumption rate. 
E) demand amount.

Question 7

Which of the following is a criterion used for selecting a target segment?

Accepted Answer

A) potential for increased profit 
B) similarity of needs of potential buyers within a segment 
C) cost of reaching the segment 
D) difference of needs of buyers among segments 
E) potential of a marketing action to reach a segment 
A) potential for increased profit 
B) similarity of needs of potential buyers within a segment 
C) cost of reaching the segment 
D) difference of needs of buyers among segments 
E) potential of a marketing action to reach a segment

Question 8

The phrase "relatively homogeneous collections of prospective buyers" is most descriptive of

Accepted Answer

A) demographic clusters. 
B) organizational buyers. 
C) ultimate consumers. 
D) market segments. 
E) qualified prospects. 
A) demographic clusters. 
B) organizational buyers. 
C) ultimate consumers. 
D) market segments. 
E) qualified prospects.

Question 9

Australia-based Renewable Energy Ltd. sells a $10 million device that converts manure into energy. One of these devices is capable of generating energy equal to $2 million of natural gas per year. The company believes its target market consists of businesses similar to its first customer, a fertilizer manufacturer that was located in a rural area. If the firm expands to the United States, it most likely will use which of the following strategies to segment its market?

Accepted Answer

A) behavioral and geographic 
B) number of employees and behavioral 
C) purchase location and purchase type 
D) NAICS code and geographic 
E) behavioral and NAICS code 
A) behavioral and geographic 
B) number of employees and behavioral 
C) purchase location and purchase type 
D) NAICS code and geographic 
E) behavioral and NAICS code

Question 10

The Walt Disney Co. carefully markets two distinct Winnie-the-Poohs; one is the original line-drawn figure on fine china sold at Nordstrom and the other is a cartoon-like Pooh on polyester bed sheets sold at Target. This is an example of

Accepted Answer

A) mass customization. 
B) a Tiffany/Walmart strategy. 
C) one product and multiple market segments. 
D) price discrimination. 
E) psychographic market segmentation. 
A) mass customization. 
B) a Tiffany/Walmart strategy. 
C) one product and multiple market segments. 
D) price discrimination. 
E) psychographic market segmentation.

Question 11

Apple's iPhone has a feature known as Apple Pay that lets you use your phone to pay for credit purchases, meaning you could leave your wallet at home. This feature sets the smartphone apart from its competitors and is part of Apple's ___________ strategy.

Accepted Answer

A) product segmentation 
B) market expansion 
C) product differentiation 
D) usage segmentation 
E) psychographic segmentation 
A) product segmentation 
B) market expansion 
C) product differentiation 
D) usage segmentation 
E) psychographic segmentation

Question 12

Segmentation based on where prospective customers live or work is referred to as

Accepted Answer

A) zip code segmentation. 
B) geographic segmentation. 
C) regional segmentation. 
D) MSA segmentation. 
E) NAICS code segmentation. 
A) zip code segmentation. 
B) geographic segmentation. 
C) regional segmentation. 
D) MSA segmentation. 
E) NAICS code segmentation.

Question 13

The annual Sporting News Baseball Yearbook uses 17 different covers featuring a baseball star from each of its regions in the United States, yet each regional issue has the same magazine content. The publisher is using which of the following segmentation strategies?

Accepted Answer

A) multiple products with one segment 
B) one product with one channel of distribution 
C) one product with multiple market segments 
D) one product with changes based on customer behavior 
E) multiple products with multiple segments 
A) multiple products with one segment 
B) one product with one channel of distribution 
C) one product with multiple market segments 
D) one product with changes based on customer behavior 
E) multiple products with multiple segments

Question 14

Criteria for forming segments involve both similarities and differences. In terms of the needs of buyers, the similarities must be __________ a segment, and the differences must be __________ segments.

Accepted Answer

A) between; among 
B) throughout; absent in 
C) within; among 
D) absent in; throughout 
E) among; across 
A) between; among 
B) throughout; absent in 
C) within; among 
D) absent in; throughout 
E) among; across

Question 15

After establishing the market segments and product groupings on a market-product grid, the next step is to

Accepted Answer

A) fill in the appropriate cells with precise statistical data from primary and/or secondary sources. 
B) estimate, with intelligent guesstimates as necessary, the market size for each cell using a simple scale, such as from zero to three. 
C) total the vertical columns to identify the greatest marketing synergies and efficiencies. 
D) total the horizontal rows to identify greatest operations/production synergies and efficiencies. 
E) identify a marketing action for every product-market combination in the grid. 
A) fill in the appropriate cells with precise statistical data from primary and/or secondary sources. 
B) estimate, with intelligent guesstimates as necessary, the market size for each cell using a simple scale, such as from zero to three. 
C) total the vertical columns to identify the greatest marketing synergies and efficiencies. 
D) total the horizontal rows to identify greatest operations/production synergies and efficiencies. 
E) identify a marketing action for every product-market combination in the grid.

Question 16

Market-product grid refers to

Accepted Answer

A) a visual representation of all products offered within a specific product class. 
B) a framework used to compare the relative market share of one firm's product offerings to those of its competitors. 
C) a technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. 
D) a framework used to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. 
E) a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products. 
A) a visual representation of all products offered within a specific product class. 
B) a framework used to compare the relative market share of one firm's product offerings to those of its competitors. 
C) a technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. 
D) a framework used to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. 
E) a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.

Question 17

There are five key steps in segmenting and targeting markets, which link market needs of customers to the organization's marketing program. List these five key steps.

Accepted Answer

The five key steps in segmenting and tar

Question 18

Grocery retailer Safeway displays the thousands of items it sells in aisles containing related items or product groupings. Examples would be the pet food aisle or the soft drink aisle. Why would Safeway display and sell product groupings in this manner?

Accepted Answer

A) The groupings increase the number of market-product combinations on the market-product grid, which makes it a more manageable framework for subsequent analysis. 
B) This form of product groupings makes it easier for customers to get in and out of the store more quickly, creating time utility. 
C) The products are grouped so people can relate to them in a more meaningful way when they shop. 
D) Product groupings can be generated quantitatively to show which adhere to the 80/20 rule. 
E) Suppliers get preferential treatment based upon the number of different UPCs they provide. 
A) The groupings increase the number of market-product combinations on the market-product grid, which makes it a more manageable framework for subsequent analysis. 
B) This form of product groupings makes it easier for customers to get in and out of the store more quickly, creating time utility. 
C) The products are grouped so people can relate to them in a more meaningful way when they shop. 
D) Product groupings can be generated quantitatively to show which adhere to the 80/20 rule. 
E) Suppliers get preferential treatment based upon the number of different UPCs they provide.

Question 19

What is product differentiation? How does it relate to market segmentation? How does it potentially improve a firm's revenues?

Accepted Answer

Product differentiation involves a firm

Question 20

You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50. Or you can buy a Hallmark card from its new $0.99 line of greeting cards, made with lesser-quality materials but just as sentimental, sold at Barnes & Noble bookstores. This is an example of

Accepted Answer

A) mass customization. 
B) organizational synergy. 
C) one product and multiple market segments. 
D) price discrimination. 
E) a Tiffany/Walmart strategy. 
A) mass customization. 
B) organizational synergy. 
C) one product and multiple market segments. 
D) price discrimination. 
E) a Tiffany/Walmart strategy.

Exam 9: Market Segmentation Targeting and Positioning

According to Tony Hsieh, CEO of Zappos, the company devotes the greatest amount of time to

Product features and usage rate are both variables used to employ __________ segmentation.

Tony Hsieh invested in the company Zappos and

ExxonMobil targets consumers that fill up their gas tanks more than once a week with its Chase Visa fuel card. In this example, ExxonMobil is using which segmentation variable?

Market segments refers to

The quantity consumed or patronage (store visits) during a specific period is referred to as

Which of the following is a criterion used for selecting a target segment?

The phrase "relatively homogeneous collections of prospective buyers" is most descriptive of

The Walt Disney Co. carefully markets two distinct Winnie-the-Poohs; one is the original line-drawn figure on fine china sold at Nordstrom and the other is a cartoon-like Pooh on polyester bed sheets sold at Target. This is an example of

Apple's iPhone has a feature known as Apple Pay that lets you use your phone to pay for credit purchases, meaning you could leave your wallet at home. This feature sets the smartphone apart from its competitors and is part of Apple's ___________ strategy.

Segmentation based on where prospective customers live or work is referred to as

The annual Sporting News Baseball Yearbook uses 17 different covers featuring a baseball star from each of its regions in the United States, yet each regional issue has the same magazine content. The publisher is using which of the following segmentation strategies?

Criteria for forming segments involve both similarities and differences. In terms of the needs of buyers, the similarities must be __________ a segment, and the differences must be __________ segments.

After establishing the market segments and product groupings on a market-product grid, the next step is to

Market-product grid refers to

There are five key steps in segmenting and targeting markets, which link market needs of customers to the organization's marketing program. List these five key steps.

Grocery retailer Safeway displays the thousands of items it sells in aisles containing related items or product groupings. Examples would be the pet food aisle or the soft drink aisle. Why would Safeway display and sell product groupings in this manner?

What is product differentiation? How does it relate to market segmentation? How does it potentially improve a firm's revenues?

You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50. Or you can buy a Hallmark card from its new $0.99 line of greeting cards, made with lesser-quality materials but just as sentimental, sold at Barnes & Noble bookstores. This is an example of

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

Criteria for forming segments involve both similarities and differences. In terms of the needs of buyers, the similarities must be a segment, and the differences must be segments.