Question 1

A market segment profile describes the similarities among potential customers within a segment and explains the differences among people across market segments.

Accepted Answer

A) True 
 B)False

Question 2

Justin Franklin's company is interested in locating areas where the average income is high,the average age range is 25-35 years,and the lifestyles of the people involve extreme adventures and dangerous leisure activities.His company would most likely find possible markets through

Accepted Answer

A)  U.S.Census Bureau information. 
B)  geographic segmentation variables. 
C)  geodemographic segmentation. 
D)  climate information. 
E)  psychographic segmentation. 
A)  U.S.Census Bureau information. 
B)  geographic segmentation variables. 
C)  geodemographic segmentation. 
D)  climate information. 
E)  psychographic segmentation.

Question 3

Use the following to answer the questions.
GE Transportation produces locomotive engines for sale in countries around the world.After looking at the total market for locomotive engines,the company found that different rail lines wanted engines.Major rail lines in the U.S.and South America wanted engines to haul heavy freight.Rail lines in Sweden and Germany were interested in a cleaner,greener locomotive engine.Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country.GE Transportation is currently manufacturing its GE 4400 for heavy freight,its Hybrid Eco-Engine,and its Dash 9,suited for shortline transport.
-Refer to Scenario 5.2.What segmentation variable is GE Transportation using to select a target market?

Accepted Answer

A)  Demographic 
B)  Benefit expectations 
C)  Income 
D)  Volume usage 
E)  Psychographic 
A)  Demographic 
B)  Benefit expectations 
C)  Income 
D)  Volume usage 
E)  Psychographic

Question 4

Yvonne and Garret are looking at information about how their organization's products could fit potential customers' needs.This information deals with demographic characteristics,product benefits sought,lifestyles,geographic factors,brand preferences,and usage rates.They are most likely looking at

Accepted Answer

A)  the sales force survey results. 
B)  the results of sales forecasting. 
C)  a market trend analysis. 
D)  a market segmentation discrimination analysis. 
E)  a market segment profile. 
A)  the sales force survey results. 
B)  the results of sales forecasting. 
C)  a market trend analysis. 
D)  a market segmentation discrimination analysis. 
E)  a market segment profile.

Question 5

Which of the following is the biggest drawback to using psychographic variables?

Accepted Answer

A)  They are not strongly reflective of consumer behavior. 
B)  They are difficult to measure. 
C)  They give poor information about consumer needs. 
D)  They do not reflect socioeconomic characteristics of consumers. 
E)  The resulting segments are difficult to be reached. 
A)  They are not strongly reflective of consumer behavior. 
B)  They are difficult to measure. 
C)  They give poor information about consumer needs. 
D)  They do not reflect socioeconomic characteristics of consumers. 
E)  The resulting segments are difficult to be reached.

Question 6

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families.Procter & Gamble is using a(n)____ targeting strategy for laundry detergents.

Accepted Answer

A)  multiuse 
B)  differentiated 
C)  stratified 
D)  undifferentiated 
E)  concentrated 
A)  multiuse 
B)  differentiated 
C)  stratified 
D)  undifferentiated 
E)  concentrated

Question 7

A firm ordinarily uses the same sales forecasting method for determining short-range and long-range sales forecasts.

Accepted Answer

A) True 
 B)False

Question 8

Bethlehem Steel provides steel for a variety of uses to its various customers.Customers have different needs for the steel and thus Bethlehem has to prepare the raw steel differently depending on how customers will use it in their production processes.The primary business segmentation variable in this example is

Accepted Answer

A)  geographic location. 
B)  customer size. 
C)  product use. 
D)  customer importance. 
E)  organization classification. 
A)  geographic location. 
B)  customer size. 
C)  product use. 
D)  customer importance. 
E)  organization classification.

Question 9

Mattel views the toy market as composed of four age groupings,each with different needs and desires.Each of these groups are known as

Accepted Answer

A)  an undifferentiated market. 
B)  heterogeneous. 
C)  a market segment. 
D)  a marketing mix. 
E)  a concentrated market. 
A)  an undifferentiated market. 
B)  heterogeneous. 
C)  a market segment. 
D)  a marketing mix. 
E)  a concentrated market.

Question 10

Characteristics of individuals,groups,or organizations that are used for dividing a total market into smaller homogeneous groups are called ____ variables.

Accepted Answer

A)  marketing 
B)  classification 
C)  segmentation 
D)  stratification 
E)  dividing 
A)  marketing 
B)  classification 
C)  segmentation 
D)  stratification 
E)  dividing

Question 11

When selecting specific target markets,a firm should

Accepted Answer

A)  revert to an undifferentiated approach if the market is deemed heterogeneous. 
B)  choose the segments most in line with the firm's objectives and long-term growth. 
C)  choose all segments that are determined to be profitable for the organization. 
D)  choose the minimum number of segments necessary to achieve company sales potential. 
E)  pick the segments with the best sales forecasts for the upcoming period of time. 
A)  revert to an undifferentiated approach if the market is deemed heterogeneous. 
B)  choose the segments most in line with the firm's objectives and long-term growth. 
C)  choose all segments that are determined to be profitable for the organization. 
D)  choose the minimum number of segments necessary to achieve company sales potential. 
E)  pick the segments with the best sales forecasts for the upcoming period of time.

Question 12

Why would a firm survey its sales force to forecast company sales? Why would a firm choose an expert forecasting survey instead?

Accepted Answer

The answer of Why would a firm survey its sales...

Question 13

A firm operating in a one-state market would not regionalize its market.

Accepted Answer

A) True 
 B)False

Question 14

Market potential is the amount of a product that an organization could sell during a specified time period.

Accepted Answer

A) True 
 B)False

Question 15

A marketer is likely to use competition avoidance positioning when it is introducing a new brand into a market where it has existing brands.

Accepted Answer

A) True 
 B)False

Question 16

Company sales potential is the maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product.

Accepted Answer

A) True 
 B)False

Question 17

____ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments.

Accepted Answer

A)  Market segmentation variables 
B)  Market segment profiles 
C)  Segmentation grids 
D)  Market differentiation indexes 
E)  Market concentrations 
A)  Market segmentation variables 
B)  Market segment profiles 
C)  Segmentation grids 
D)  Market differentiation indexes 
E)  Market concentrations

Question 18

McDonald's uses a segmentation strategy for its sandwiches based on market characteristics such as age,gender,or income.Which of the following segmentation variables is McDonald's using?

Accepted Answer

A)  Demographic 
B)  Geographic 
C)  Psychographic 
D)  Product-related 
E)  Education 
A)  Demographic 
B)  Geographic 
C)  Psychographic 
D)  Product-related 
E)  Education

Question 19

If a company extends a line of products by introducing a new product to the market,and the firm does not distinctly position this product (i.e.,separately from the other products in the line),the result could be

Accepted Answer

A)  poor product positioning. 
B)  product deletion. 
C)  product repositioning. 
D)  cannibalization. 
E)  new-product development. 
A)  poor product positioning. 
B)  product deletion. 
C)  product repositioning. 
D)  cannibalization. 
E)  new-product development.

Question 20

Age,rate of product use,location,and gender are all examples of common

Accepted Answer

A)  demographic variables. 
B)  geographic characteristics. 
C)  targeting strategies. 
D)  psychographic variables. 
E)  segmentation variables. 
A)  demographic variables. 
B)  geographic characteristics. 
C)  targeting strategies. 
D)  psychographic variables. 
E)  segmentation variables.

Exam 5: Selecting Target Markets

A market segment profile describes the similarities among potential customers within a segment and explains the differences among people across market segments.

Justin Franklin's company is interested in locating areas where the average income is high,the average age range is 25-35 years,and the lifestyles of the people involve extreme adventures and dangerous leisure activities.His company would most likely find possible markets through

Yvonne and Garret are looking at information about how their organization's products could fit potential customers' needs.This information deals with demographic characteristics,product benefits sought,lifestyles,geographic factors,brand preferences,and usage rates.They are most likely looking at

Which of the following is the biggest drawback to using psychographic variables?

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families.Procter & Gamble is using a(n)____ targeting strategy for laundry detergents.

A firm ordinarily uses the same sales forecasting method for determining short-range and long-range sales forecasts.

Mattel views the toy market as composed of four age groupings,each with different needs and desires.Each of these groups are known as

Characteristics of individuals,groups,or organizations that are used for dividing a total market into smaller homogeneous groups are called ____ variables.

When selecting specific target markets,a firm should

Why would a firm survey its sales force to forecast company sales? Why would a firm choose an expert forecasting survey instead?

A firm operating in a one-state market would not regionalize its market.

Market potential is the amount of a product that an organization could sell during a specified time period.

A marketer is likely to use competition avoidance positioning when it is introducing a new brand into a market where it has existing brands.

Company sales potential is the maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product.

____ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments.

McDonald's uses a segmentation strategy for its sandwiches based on market characteristics such as age,gender,or income.Which of the following segmentation variables is McDonald's using?

If a company extends a line of products by introducing a new product to the market,and the firm does not distinctly position this product (i.e.,separately from the other products in the line),the result could be

Age,rate of product use,location,and gender are all examples of common

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