Question 1

All of the following are advantages of using a concentrated targeting strategy EXCEPT:

Accepted Answer

A)  concentration of resources 
B)  can better meet the needs of a narrowly defined segment 
C)  allows some small firms to better compete with larger firms 
D)  strong positioning 
E)  cannibalization 
A)  concentration of resources 
B)  can better meet the needs of a narrowly defined segment 
C)  allows some small firms to better compete with larger firms 
D)  strong positioning 
E)  cannibalization

Question 2

Lands' End offers customers the option using special software to accurately gauge what size customers are in Lands' End clothes using a web cam image,and the ability to store size preferences.This is an example of which trend contributing to CRM?

Accepted Answer

A)  Time Savings
An application of the 80/20 rule 
B)  Personalization
Firewall marketing 
C)  Loyalty marketing
One-to-one marketing 
D)  Technology
Transformational marketing 
E)  All of these
Data mining 
A)  Time Savings
An application of the 80/20 rule 
B)  Personalization
Firewall marketing 
C)  Loyalty marketing
One-to-one marketing 
D)  Technology
Transformational marketing 
E)  All of these
Data mining

Question 3

_____ is one of the potential disadvantages associated with a multisegment strategy.

Accepted Answer

A)  Inadequate demand 
B)  Demarketing 
C)  Lower profits 
D)  Cannibalization 
E)  Loss of synergy 
A)  Inadequate demand 
B)  Demarketing 
C)  Lower profits 
D)  Cannibalization 
E)  Loss of synergy

Question 4

ThermaCare air-activated heat wraps are meant to be wrapped around sore muscles and joints.The product is advertised as a powerful pain reliever and a source of deep muscle relaxation.Its soothing warmth can work at night while you sleep to restore your body.The manufacturer of ThermaCare heat wraps is using _____ segmentation.

Accepted Answer

A)  geodemographic 
B)  functional 
C)  benefit 
D)  socioeconomic 
E)  feature-based 
A)  geodemographic 
B)  functional 
C)  benefit 
D)  socioeconomic 
E)  feature-based

Question 5

A potential disadvantage of multisegment targeting is _____,which occurs when sales of a new product cut into sales of a firm's existing products.

Accepted Answer

A)  cannibalization 
B)  synergy 
C)  positioning 
D)  demarketing 
E)  inelastic demand 
A)  cannibalization 
B)  synergy 
C)  positioning 
D)  demarketing 
E)  inelastic demand

Question 6

Firms can be categorized by the type of purchasing strategy used._____ consider numerous,even unfamiliar,suppliers and solicit and analyze options.

Accepted Answer

A)  Satisficers 
B)  Strivers 
C)  Optimizers 
D)  Actualizers 
E)  Innovators 
A)  Satisficers 
B)  Strivers 
C)  Optimizers 
D)  Actualizers 
E)  Innovators

Question 7

Turkey Hunting Equipment
Around the beginning of fall each year, about 2.7 million turkey hunters all over the United States start looking at catalogs for the perfect item to guarantee that this year they will kill a wild turkey, the most elusive game bird in North America. The devoted turkey stalker can stock up on everything from camouflaged turkey hunting socks, turkey license plate holders, vests with huge pockets for toting dead birds, and hunting videos to turkey decoys, turkey earrings, and turkey callers. Neil Cost is considered the best manufacturer of turkey callers in the world. It is his only product, and each is highly prized by turkey hunters. It is not unusual for a turkey hunter to pay $5,000 for one of Cost's callers.
-Refer to Turkey Hunting Equipment.Wild turkey hunters would be defined as a:

Accepted Answer

A)  market segment 
B)  market position 
C)  segmentation base 
D)  retail position 
E)  consumer position 
A)  market segment 
B)  market position 
C)  segmentation base 
D)  retail position 
E)  consumer position

Question 8

What is product differentiation,and how can it be achieved?

Accepted Answer

Product differentiation distinguishes on

Question 9

When Henry Ford made the Model T,he said that consumers "can have their car in any color they want,as long as it's black." This was a case of:

Accepted Answer

A)  Repositioning. 
B)  Reengineering. 
C)  one-to-one marketing. 
D)  undifferentiated targeting. 
E)  niche marketing. 
A)  Repositioning. 
B)  Reengineering. 
C)  one-to-one marketing. 
D)  undifferentiated targeting. 
E)  niche marketing.

Question 10

Abbeville Press published a book by Armin Brott and Jennifer Ash entitled The Expectant Father: Facts,Tips,and Advice for Dads-to-Be. It is an advice book for men whose partners are expecting a baby.What demographic variables have been used to define the market for this book?

Accepted Answer

A)  Benefit desired and lifestyle 
B)  Gender and family life cycle stage 
C)  Age, gender, and personality 
D)  Benefit desired and gender 
E)  Usage-rate and lifestyle 
A)  Benefit desired and lifestyle 
B)  Gender and family life cycle stage 
C)  Age, gender, and personality 
D)  Benefit desired and gender 
E)  Usage-rate and lifestyle

Question 11

Companies that adopt a concentrated marketing strategy violate which of the following old sayings?

Accepted Answer

A)  "You can't bake a pie without breaking some eggs." 
B)  "Don't count your chickens before they hatch." 
C)  "Don't put all your eggs in one basket." 
D)  "The grass is always greener on the other side of the fence." 
E)  "A rolling stone gathers no moss." 
A)  "You can't bake a pie without breaking some eggs." 
B)  "Don't count your chickens before they hatch." 
C)  "Don't put all your eggs in one basket." 
D)  "The grass is always greener on the other side of the fence." 
E)  "A rolling stone gathers no moss."

Question 12

Turkey Hunting Equipment
Around the beginning of fall each year, about 2.7 million turkey hunters all over the United States start looking at catalogs for the perfect item to guarantee that this year they will kill a wild turkey, the most elusive game bird in North America. The devoted turkey stalker can stock up on everything from camouflaged turkey hunting socks, turkey license plate holders, vests with huge pockets for toting dead birds, and hunting videos to turkey decoys, turkey earrings, and turkey callers. Neil Cost is considered the best manufacturer of turkey callers in the world. It is his only product, and each is highly prized by turkey hunters. It is not unusual for a turkey hunter to pay $5,000 for one of Cost's callers.
-Refer to Turkey Hunting Equipment.Segmenting a market based on the fact that people who enjoy hunting typically exhibit a particular lifestyle is an example of _____ segmentation.

Accepted Answer

A)  benefit 
B)  psychographic 
C)  geographic 
D)  geodemographic 
E)  demographic 
A)  benefit 
B)  psychographic 
C)  geographic 
D)  geodemographic 
E)  demographic

Question 13

The purpose of market segmentation is to:

Accepted Answer

A)  reduce the market down to a size the firm can handle 
B)  divide the market into equal size and profit regions for sales territories 
C)  group a large number of markets together, enabling a company to serve them simultaneously 
D)  develop a generalized definition of the market as a whole 
E)  enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups 
A)  reduce the market down to a size the firm can handle 
B)  divide the market into equal size and profit regions for sales territories 
C)  group a large number of markets together, enabling a company to serve them simultaneously 
D)  develop a generalized definition of the market as a whole 
E)  enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups

Question 14

Pocket-knife collector Sam Penley decided to open The Knife Depot,a store that sells pocket knives and related paraphernalia.After 18 months in business,Sam has noticed that most of his sales are to the same small group of customers (about 40 people)even though he has records to show there are over 200 active pocket-knife collectors within a 50-mile radius of his store.Sam's retailing experience is supportive of the:

Accepted Answer

A)  optimizer principle 
B)  min-max rule 
C)  majority fallacy 
D)  rule of demand 
E)  80/20 principle 
A)  optimizer principle 
B)  min-max rule 
C)  majority fallacy 
D)  rule of demand 
E)  80/20 principle

Question 15

Tall Paul's designs and sells household furniture and furnishings to people who are over 6'6" tall--a rather small target market.Tall Paul's uses a(n)_____ targeting strategy.

Accepted Answer

A)  benefit 
B)  undifferentiated 
C)  multisegment marketing 
D)  universal product code 
E)  concentrated 
A)  benefit 
B)  undifferentiated 
C)  multisegment marketing 
D)  universal product code 
E)  concentrated

Question 16

_____ are characteristics of individuals,groups,or organizations that marketers use to divide a total market into segments.

Accepted Answer

A)  Differentiation guides 
B)  Segmentation bases 
C)  Perceptual maps 
D)  Responsiveness quotients 
E)  Accessibility quotients 
A)  Differentiation guides 
B)  Segmentation bases 
C)  Perceptual maps 
D)  Responsiveness quotients 
E)  Accessibility quotients

Question 17

Jane graduated from high school in 1978,is married,and has two teenage children.Most of Jane's friends from high school have children who have already graduated from college and gotten married,and some have grandchildren.Jane and her former classmates are at different stages of the:

Accepted Answer

A)  internalization phase. 
B)  segmentation process. 
C)  family life cycle. 
D)  psychographic cycle. 
E)  maturation process. 
A)  internalization phase. 
B)  segmentation process. 
C)  family life cycle. 
D)  psychographic cycle. 
E)  maturation process.

Question 18

What is a market segment? Define market segmentation and discuss why market segmentation is important to the well-being of most companies.

Accepted Answer

A market segment is a subgroup of people

Question 19

While it is important to understand potential business customers' buying processes,this is not a helpful segmentation basis.

Accepted Answer

A) True 
 B)False

Question 20

All of the following are true about CRM except:

Accepted Answer

A)  Customers resent how companies use their information 
B)  CRM is a huge commitment 
C)  Marketers often have to completely rethink how they target customers. 
D)  Loyalty programs use CRM to thank customers for their business and reinforce the decision to shop at that store. 
E)  CRM makes purchase decisions more routine for regular customers, which offers time savings. 
A)  Customers resent how companies use their information 
B)  CRM is a huge commitment 
C)  Marketers often have to completely rethink how they target customers. 
D)  Loyalty programs use CRM to thank customers for their business and reinforce the decision to shop at that store. 
E)  CRM makes purchase decisions more routine for regular customers, which offers time savings.

Exam 15: Segmenting and Targeting Markets

All of the following are advantages of using a concentrated targeting strategy EXCEPT:

Lands' End offers customers the option using special software to accurately gauge what size customers are in Lands' End clothes using a web cam image,and the ability to store size preferences.This is an example of which trend contributing to CRM?

_____ is one of the potential disadvantages associated with a multisegment strategy.

A potential disadvantage of multisegment targeting is _____,which occurs when sales of a new product cut into sales of a firm's existing products.

Firms can be categorized by the type of purchasing strategy used._____ consider numerous,even unfamiliar,suppliers and solicit and analyze options.

What is product differentiation,and how can it be achieved?

When Henry Ford made the Model T,he said that consumers "can have their car in any color they want,as long as it's black." This was a case of:

Abbeville Press published a book by Armin Brott and Jennifer Ash entitled The Expectant Father: Facts,Tips,and Advice for Dads-to-Be. It is an advice book for men whose partners are expecting a baby.What demographic variables have been used to define the market for this book?

Companies that adopt a concentrated marketing strategy violate which of the following old sayings?

The purpose of market segmentation is to:

Tall Paul's designs and sells household furniture and furnishings to people who are over 6'6" tall--a rather small target market.Tall Paul's uses a(n)_____ targeting strategy.

_____ are characteristics of individuals,groups,or organizations that marketers use to divide a total market into segments.

Jane graduated from high school in 1978,is married,and has two teenage children.Most of Jane's friends from high school have children who have already graduated from college and gotten married,and some have grandchildren.Jane and her former classmates are at different stages of the:

What is a market segment? Define market segmentation and discuss why market segmentation is important to the well-being of most companies.

While it is important to understand potential business customers' buying processes,this is not a helpful segmentation basis.

All of the following are true about CRM except:

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