Question 1

Firms that operate on the Internet are at a disadvantage when it comes to using approaches like CRM.

Accepted Answer

A) True 
 B)False

Question 2

If a product-market segment is "homogeneous within," it is called a "substantial" target market.

Accepted Answer

A) True 
 B)False

Question 3

Market segmentation says that target marketers should develop one good marketing mix aimed at a fairly large market.

Accepted Answer

A) True 
 B)False

Question 4

Ideally, segmenters should start with the idea that each person is "one of a kind" and can be described by a special set of dimensions that may be used to aggregate similar customers together.

Accepted Answer

A) True 
 B)False

Question 5

CRM is a variation of the positioning approach.

Accepted Answer

A) True 
 B)False

Question 6

A "product-market" is a market in which:

Accepted Answer

A)  all sellers offer exactly the same product. 
B)  one firm has achieved a competitive advantage. 
C)  all sellers offer products that are unique and innovative. 
D)  sellers offer very close substitute ways of satisfying potential customers' needs. 
E)  sellers offer substitute products which are quite different physically or conceptually. 
A)  all sellers offer exactly the same product. 
B)  one firm has achieved a competitive advantage. 
C)  all sellers offer products that are unique and innovative. 
D)  sellers offer very close substitute ways of satisfying potential customers' needs. 
E)  sellers offer substitute products which are quite different physically or conceptually.

Question 7

Computer-aided segmenting approaches eliminate the need for managerial judgment and intuition in selecting segmenting dimensions.

Accepted Answer

A) True 
 B)False

Question 8

As shown in the discussion of the 7-step approach, determining dimensions may change over time.

Accepted Answer

A) True 
 B)False

Question 9

Tom and Sally Jones are preparing to purchase a new car. He currently has a Toyota Camry and she has a Honda Accord. They now have two children under age 5, so they plan to trade in Sally's car to purchase a minivan. Sally and Tom decided on a Honda Odyssey because Sally is familiar with Hondas and thinks they are very reliable. In this purchase situation, Tom and Sally's family life cycle stage is a _____________ segmentation dimension, and the benefit Sally seeks (reliability) is a _____________ segmentation dimension.

Accepted Answer

A)  geographic; demographic 
B)  demographic; behavioral 
C)  geographic; behavioral 
D)  demographic; geographic 
E)  behavioral; demographic 
A)  geographic; demographic 
B)  demographic; behavioral 
C)  geographic; behavioral 
D)  demographic; geographic 
E)  behavioral; demographic

Question 10

A market is a group of two or more sellers who offer substitute ways of satisfying customer needs.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements about market-oriented strategy planning is TRUE?

Accepted Answer

A)  Segmenters aim at more heterogeneous markets than combiners. 
B)  Both "segmenters" and "combiners" can be target marketers. 
C)  All segmenters follow the single target market approach. 
D)  Combiners follow a mass marketing strategy. 
E)  All of the above are true. 
A)  Segmenters aim at more heterogeneous markets than combiners. 
B)  Both "segmenters" and "combiners" can be target marketers. 
C)  All segmenters follow the single target market approach. 
D)  Combiners follow a mass marketing strategy. 
E)  All of the above are true.

Question 12

The seven-step approach to market segmentation does not estimate the size of each submarket until Step 7.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements about clustering techniques is true?

Accepted Answer

A)  Clustering techniques try to find dissimilar patterns within sets of customer-related data. 
B)  Computers are usually needed to search among all of the data for homogeneous groups of people. 
C)  Computers identify the relevant dimensions and do the analysis. 
D)  A cluster analysis of the toothpaste market indicated that most consumers seek the same benefits. 
E)  All of the statements above are true. 
A)  Clustering techniques try to find dissimilar patterns within sets of customer-related data. 
B)  Computers are usually needed to search among all of the data for homogeneous groups of people. 
C)  Computers identify the relevant dimensions and do the analysis. 
D)  A cluster analysis of the toothpaste market indicated that most consumers seek the same benefits. 
E)  All of the statements above are true.

Question 14

When evaluating international markets, the marketing manager should:

Accepted Answer

A)  focus primarily on consumer markets because foreign business markets are in general too risky. 
B)  not worry very much about segmenting because marketing concepts are not very well developed in most other economies. 
C)  consider the whole "foreign market" as a segment. 
D)  use broad criteria, such as geographic region or stage of economic development, to define submarkets before further segmenting. 
E)  treat each foreign market as a separate segment. 
A)  focus primarily on consumer markets because foreign business markets are in general too risky. 
B)  not worry very much about segmenting because marketing concepts are not very well developed in most other economies. 
C)  consider the whole "foreign market" as a segment. 
D)  use broad criteria, such as geographic region or stage of economic development, to define submarkets before further segmenting. 
E)  treat each foreign market as a separate segment.

Question 15

Which of the following is LEAST likely to compete in the same generic market with the others?

Accepted Answer

A)  Garlic powder. 
B)  Pepper. 
C)  Tabasco sauce. 
D)  Salt. 
E)  Potato chips. 
A)  Garlic powder. 
B)  Pepper. 
C)  Tabasco sauce. 
D)  Salt. 
E)  Potato chips.

Question 16

Clustering techniques applied to segmenting markets

Accepted Answer

A)  usually require computers to group people based on data from market research. 
B)  remove the need for managerial judgment. 
C)  eliminate the need for marketing managers to specify in advance what dimensions might be relevant for grouping consumers. 
D)  Both B and C are true. 
E)  All of the above are true. 
A)  usually require computers to group people based on data from market research. 
B)  remove the need for managerial judgment. 
C)  eliminate the need for marketing managers to specify in advance what dimensions might be relevant for grouping consumers. 
D)  Both B and C are true. 
E)  All of the above are true.

Question 17

The more heterogeneous a firm's target market becomes, the more likely the firm will see competition from an innovative segmenter.

Accepted Answer

A) True 
 B)False

Question 18

A determining dimension for segmenting markets actually affects the purchase of a specific brand in a product-market.

Accepted Answer

A) True 
 B)False

Question 19

A marketing manager who is able to use qualifying dimensions in forming market segments will not need to worry about determining dimensions.

Accepted Answer

A) True 
 B)False

Question 20

A cluster analysis of the "toothpaste market" would probably show that:

Accepted Answer

A)  the broad product-market can be served effectively with one marketing mix. 
B)  most consumers are mainly concerned about brightness of teeth. 
C)  factors such as taste, price, and "sex appeal" are not important. 
D)  different market segments seek different product benefits. 
E)  All of the above. 
A)  the broad product-market can be served effectively with one marketing mix. 
B)  most consumers are mainly concerned about brightness of teeth. 
C)  factors such as taste, price, and "sex appeal" are not important. 
D)  different market segments seek different product benefits. 
E)  All of the above.

Exam 4: Focusing Marketing Strategy With Segmentation and Positioning

Firms that operate on the Internet are at a disadvantage when it comes to using approaches like CRM.

If a product-market segment is "homogeneous within," it is called a "substantial" target market.

Market segmentation says that target marketers should develop one good marketing mix aimed at a fairly large market.

Ideally, segmenters should start with the idea that each person is "one of a kind" and can be described by a special set of dimensions that may be used to aggregate similar customers together.

CRM is a variation of the positioning approach.

A "product-market" is a market in which:

Computer-aided segmenting approaches eliminate the need for managerial judgment and intuition in selecting segmenting dimensions.

As shown in the discussion of the 7-step approach, determining dimensions may change over time.

A market is a group of two or more sellers who offer substitute ways of satisfying customer needs.

Which of the following statements about market-oriented strategy planning is TRUE?

The seven-step approach to market segmentation does not estimate the size of each submarket until Step 7.

Which of the following statements about clustering techniques is true?

When evaluating international markets, the marketing manager should:

Which of the following is LEAST likely to compete in the same generic market with the others?

Clustering techniques applied to segmenting markets

The more heterogeneous a firm's target market becomes, the more likely the firm will see competition from an innovative segmenter.

A determining dimension for segmenting markets actually affects the purchase of a specific brand in a product-market.

A marketing manager who is able to use qualifying dimensions in forming market segments will not need to worry about determining dimensions.

A cluster analysis of the "toothpaste market" would probably show that:

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Demographic Dimensions of Global Consumer Markets

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers,wholesalers,and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Implementing and Controlling Marketing Plans: Evolution and Revolution

Managing Marketings Link With Other Functional Areas

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Economics Fundamentals

Marketing Arithmetic

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