Question 1

Why would an organization produce multiple products or services and then attempt to sell them to two or more market segments?

Accepted Answer

Organizations may target different produ

Question 2

A national car rental firm targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year. The company is using __________ 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

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 4

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 5

Which of the following is NOT a criterion to use in forming market segments?

Accepted Answer

A) The ability to assign buyers to a segment is cost-effective and simple. 
B) The result of segmenting will cause an increase in market share or profit. 
C) There are significant similarities among buyers in the market segment. 
D) There is a potential marketing action to reach the segment. 
E) The cost to reach the segment exceeds its profitability. 
A) The ability to assign buyers to a segment is cost-effective and simple. 
B) The result of segmenting will cause an increase in market share or profit. 
C) There are significant similarities among buyers in the market segment. 
D) There is a potential marketing action to reach the segment. 
E) The cost to reach the segment exceeds its profitability.

Question 6

Region and city size are both variables used to employ __________ segmentation.

Accepted Answer

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

Question 7

A positioning approach that involves seeking a less competitive, smaller market niche in which to locate a brand is referred to as __________.

Accepted Answer

A) competitive repositioning 
B) head-to-head positioning 
C) differentiation positioning 
D) downsize positioning 
E) product repositioning 
A) competitive repositioning 
B) head-to-head positioning 
C) differentiation positioning 
D) downsize positioning 
E) product repositioning

Question 8

Head-to-head positioning requires a product to

Accepted Answer

A) compete with products from competitors of the same size and country of origin. 
B) compete with competitors on similar product attributes but in a different market. 
C) compete with competitors on similar product attributes in the same market. 
D) compete against very similar products from its own company. 
E) compete against a single competitor with an identical offering. 
A) compete with products from competitors of the same size and country of origin. 
B) compete with competitors on similar product attributes but in a different market. 
C) compete with competitors on similar product attributes in the same market. 
D) compete against very similar products from its own company. 
E) compete against a single competitor with an identical offering.

Question 9

Describe the market segmentation process.

Accepted Answer

The process of segmenting a market and s

Question 10

A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can

Accepted Answer

A) increase sales and profitability. 
B) stand up to legal scrutiny. 
C) be socially responsible. 
D) create sustainable demand. 
E) produce product differentiation. 
A) increase sales and profitability. 
B) stand up to legal scrutiny. 
C) be socially responsible. 
D) create sustainable demand. 
E) produce product differentiation.

Question 11

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 12

Manufacturing a product only when there is an order from a customer is referred to as

Accepted Answer

A) order customization. 
B) a one product one market segment strategy. 
C) synergistic marketing. 
D) build-to-order. 
E) specialty customization. 
A) order customization. 
B) a one product one market segment strategy. 
C) synergistic marketing. 
D) build-to-order. 
E) specialty customization.

Question 13

-As an owner of a Wendy's fast-food restaurant located near a large urban university, you need to analyze your customers and determine which segmentation base and its associated variable(s) you will use to segment your target market. Which segmentation base and associated variable (s) should you use?

Accepted Answer

A) psychographic: VALS and personality 
B) demographic: gender and age 
C) behavioral: students and nonstudents 
D) geographic: city size and zip code 
E) transportation mode: car, bike, public transportation, and none (walking) 
A) psychographic: VALS and personality 
B) demographic: gender and age 
C) behavioral: students and nonstudents 
D) geographic: city size and zip code 
E) transportation mode: car, bike, public transportation, and none (walking)

Question 14

When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids __________.

Accepted Answer

A) the extra cost of developing and producing additional versions of the product 
B) creating a customer service gap 
C) indirect distribution and logistics problems 
D) restructuring the firm's strategic planning 
E) amortization costs of product enhancements 
A) the extra cost of developing and producing additional versions of the product 
B) creating a customer service gap 
C) indirect distribution and logistics problems 
D) restructuring the firm's strategic planning 
E) amortization costs of product enhancements

Question 15

Many companies have cut travel budgets so that very few business people are authorized to fly first class. Despite the shrinking pool of business-class travelers, British Airways has grown market share for its transatlantic business class by offering greater comfort. Promotions to frequent fliers stress that passengers can sleep in fully reclining seats and arrive refreshed to carry out a full day's schedule. The segmentation strategy of British Airways is an example of

Accepted Answer

A) life stage segmentation. 
B) lifestyle segmentation. 
C) social class segmentation. 
D) behavioral segmentation. 
E) psychographic segmentation. 
A) life stage segmentation. 
B) lifestyle segmentation. 
C) social class segmentation. 
D) behavioral segmentation. 
E) psychographic segmentation.

Question 16

Which of the following is an example of a multiple products and multiple market segments strategy?

Accepted Answer

A) College Football magazine selects different covers for essentially the same written content in order to appeal to different geographic markets in the U.S. 
B) A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience. 
C) Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo. 
D) Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and cat litter boxes. 
E) Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women. 
A) College Football magazine selects different covers for essentially the same written content in order to appeal to different geographic markets in the U.S. 
B) A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience. 
C) Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo. 
D) Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and cat litter boxes. 
E) Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Question 17

Which of the following statements about Zappos is most accurate?

Accepted Answer

A) Zappos limits its inventory to a selection of high-end fashion footwear. 
B) Zappos carries more than 1,000 different brands. 
C) Zappos can guarantee overnight shipping to all its customers because they know ahead of time what they will be charged for express service. 
D) Zappos is so successful because it has chosen a single mission to "sell shoes and nothing else." 
E) Zappos offers a 30/60/90 return policy whereby refunds are based on how long you have had the shoes. 
A) Zappos limits its inventory to a selection of high-end fashion footwear. 
B) Zappos carries more than 1,000 different brands. 
C) Zappos can guarantee overnight shipping to all its customers because they know ahead of time what they will be charged for express service. 
D) Zappos is so successful because it has chosen a single mission to "sell shoes and nothing else." 
E) Zappos offers a 30/60/90 return policy whereby refunds are based on how long you have had the shoes.

Question 18

Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it adds to the manufacturer's sales revenues and profits, serves customers' needs better, and

Accepted Answer

A) conforms to all FDA guidelines. 
B) creates economy of scale. 
C) doesn't reduce quality or increase price. 
D) decreases the cost of the physical plant. 
E) stabilizes the sales revenues and profits. 
A) conforms to all FDA guidelines. 
B) creates economy of scale. 
C) doesn't reduce quality or increase price. 
D) decreases the cost of the physical plant. 
E) stabilizes the sales revenues and profits.

Question 19

Which of the following is an example of a multiple products and multiple market segments strategy?

Accepted Answer

A) College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the U.S. 
B) A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience. 
C) Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes. 
D) Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens. 
E) Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women. 
A) College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the U.S. 
B) A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience. 
C) Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes. 
D) Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens. 
E) Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Question 20

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 would

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.

Why would an organization produce multiple products or services and then attempt to sell them to two or more market segments?

A national car rental firm targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year. The company is using __________ segmentation.

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

Product differentiation refers to

Which of the following is NOT a criterion to use in forming market segments?

Region and city size are both variables used to employ __________ segmentation.

A positioning approach that involves seeking a less competitive, smaller market niche in which to locate a brand is referred to as __________.

Head-to-head positioning requires a product to

Describe the market segmentation process.

A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can

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

Manufacturing a product only when there is an order from a customer is referred to as

When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids __________.

Which of the following is an example of a multiple products and multiple market segments strategy?

Which of the following statements about Zappos is most accurate?

Which of the following is an example of a multiple products and multiple market segments strategy?

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 would

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

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

Pricing Products and Services

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Filters

Exam 8: Market Segmentation, Targeting, and Positioning

Why would an organization produce multiple products or services and then attempt to sell them to two or more market segments?

A national car rental firm targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year. The company is using __________ segmentation.

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

Product differentiation refers to

Which of the following is NOT a criterion to use in forming market segments?

Region and city size are both variables used to employ __________ segmentation.

A positioning approach that involves seeking a less competitive, smaller market niche in which to locate a brand is referred to as __________.

Head-to-head positioning requires a product to

Describe the market segmentation process.

A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can

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

Manufacturing a product only when there is an order from a customer is referred to as

When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids __________.

Which of the following is an example of a multiple products and multiple market segments strategy?

Which of the following statements about Zappos is most accurate?

Which of the following is an example of a multiple products and multiple market segments strategy?

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 would

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility

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

Pricing Products and Services

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Filters