Question 1

Which of the following is LEAST LIKELY to compete in the same generic market as the others?

Accepted Answer

A)  Ice cream. 
B)  Apple pie. 
C)  Fruit salad. 
D)  Chocolate chip cookie. 
E)  Pretzel. 
A)  Ice cream. 
B)  Apple pie. 
C)  Fruit salad. 
D)  Chocolate chip cookie. 
E)  Pretzel.

Question 2

Clustering techniques

Accepted Answer

A)  help sellers fine-tune the marketing effort with information from a detailed customer database. 
B)  establish how customers think about proposed or present brands in a market. 
C)  try to find similar patterns within sets of data. 
D)  group customers into heterogeneous segments. 
E)  use intuition and judgment to do what previously was done by computers. 
A)  help sellers fine-tune the marketing effort with information from a detailed customer database. 
B)  establish how customers think about proposed or present brands in a market. 
C)  try to find similar patterns within sets of data. 
D)  group customers into heterogeneous segments. 
E)  use intuition and judgment to do what previously was done by computers.

Question 3

A firm is most likely to rely on customer relationship management (CRM) approaches when it does not have a database of information on individual customers.

Accepted Answer

A) True 
 B)False

Question 4

A product-market is one in which

Accepted Answer

A)  demand is inelastic. 
B)  products that are close substitutes for each other compete for customers by trying to satisfy very similar needs. 
C)  breakthrough opportunities are no longer possible. 
D)  one seller has a patent for a superior product and other competitors try to imitate the leader. 
E)  All of the above are true. 
A)  demand is inelastic. 
B)  products that are close substitutes for each other compete for customers by trying to satisfy very similar needs. 
C)  breakthrough opportunities are no longer possible. 
D)  one seller has a patent for a superior product and other competitors try to imitate the leader. 
E)  All of the above are true.

Question 5

The first step in market segmentation should be:

Accepted Answer

A)  deciding what new product you could develop. 
B)  evaluating what segment(s) you currently serve. 
C)  finding a demographic group likely to use your products. 
D)  listing features of your current products. 
E)  defining some broad product-markets where you may be able to operate profitably. 
A)  deciding what new product you could develop. 
B)  evaluating what segment(s) you currently serve. 
C)  finding a demographic group likely to use your products. 
D)  listing features of your current products. 
E)  defining some broad product-markets where you may be able to operate profitably.

Question 6

Saying that a good market segment should be "heterogeneous between" means:

Accepted Answer

A)  That the consumers in a market segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions. 
B)  That the consumers in a market segment should be as different as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions. 
C)  That the consumers in different segments should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions. 
D)  That the consumers in different segments should be as different as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions. 
E)  That the segmenting dimensions should be useful for identifying different customers and deciding on marketing mix variables. 
A)  That the consumers in a market segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions. 
B)  That the consumers in a market segment should be as different as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions. 
C)  That the consumers in different segments should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions. 
D)  That the consumers in different segments should be as different as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions. 
E)  That the segmenting dimensions should be useful for identifying different customers and deciding on marketing mix variables.

Question 7

If a company plans to sell its products to a market segment consisting of "outgoing personalities," this would NOT be a good market segment primarily because of which of the following criteria?

Accepted Answer

A)  Homogeneous within 
B)  Heterogeneous between 
C)  Generic 
D)  Operational 
E)  Substantial 
A)  Homogeneous within 
B)  Heterogeneous between 
C)  Generic 
D)  Operational 
E)  Substantial

Question 8

A generic market description should NOT include any:

Accepted Answer

A)  customer needs. 
B)  geographic area. 
C)  competitors' names. 
D)  customer types. 
E)  It should include all of the above. 
A)  customer needs. 
B)  geographic area. 
C)  competitors' names. 
D)  customer types. 
E)  It should include all of the above.

Question 9

Strategy decisions pertaining to product features, packaging, product line assortment, and branding will be most affected by which target market dimension?

Accepted Answer

A)  Geographic location. 
B)  Urgency to get need satisfied. 
C)  Behavioral needs and attitudes of consumers. 
D)  Demographic characteristics of potential customers. 
E)  Geodemographic characteristics of potential customers. 
A)  Geographic location. 
B)  Urgency to get need satisfied. 
C)  Behavioral needs and attitudes of consumers. 
D)  Demographic characteristics of potential customers. 
E)  Geodemographic characteristics of potential customers.

Question 10

Cost considerations usually favor more aggregating and larger market segments, but smaller segments may be required to satisfy needs more exactly.

Accepted Answer

A) True 
 B)False

Question 11

The main difference between naming broad product-markets and market segmentation is:

Accepted Answer

A)  naming is a computerized process, while segmentation requires more thought. 
B)  naming is concerned with customers, while segmentation is concerned with product features. 
C)  naming involves breaking down markets, while segmentation involves aggregating customers with similar needs. 
D)  naming involves looking for similarities, while segmentation involves looking for differences. 
E)  None of the above is true. 
A)  naming is a computerized process, while segmentation requires more thought. 
B)  naming is concerned with customers, while segmentation is concerned with product features. 
C)  naming involves breaking down markets, while segmentation involves aggregating customers with similar needs. 
D)  naming involves looking for similarities, while segmentation involves looking for differences. 
E)  None of the above is true.

Question 12

A generic market description looks at market broadly and from a customer's viewpoint.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements about "segmenting" and "combining" is TRUE?

Accepted Answer

A)  Combiners usually have more sales potential than segmenters. 
B)  A combiner tries to meet the demand in several segments. 
C)  Segmenters try to develop a marketing mix that will have general appeal for several market segments--to obtain economies of scale. 
D)  A segmenter assumes that a broad product-market consists of a fairly homogeneous group of customers. 
E)  Both segmenters and combiners try to satisfy some people very well rather than a lot of people fairly well. 
A)  Combiners usually have more sales potential than segmenters. 
B)  A combiner tries to meet the demand in several segments. 
C)  Segmenters try to develop a marketing mix that will have general appeal for several market segments--to obtain economies of scale. 
D)  A segmenter assumes that a broad product-market consists of a fairly homogeneous group of customers. 
E)  Both segmenters and combiners try to satisfy some people very well rather than a lot of people fairly well.

Question 14

Manufacturer, service provider, government agency, wholesaler, etc. are designations used to segment business and organizational markets according to _______________.

Accepted Answer

A)  kind of relationship 
B)  type of customer 
C)  demographics 
D)  product use 
E)  buying situation 
A)  kind of relationship 
B)  type of customer 
C)  demographics 
D)  product use 
E)  buying situation

Question 15

Positioning analysis

Accepted Answer

A)  helps managers understand the actual characteristics of their products. 
B)  is not a product-oriented approach. 
C)  is a visual aid to understanding a product-market. 
D)  shows that managers and customers usually view present brands similarly. 
E)  always leads a firm to segmenting and not combining. 
A)  helps managers understand the actual characteristics of their products. 
B)  is not a product-oriented approach. 
C)  is a visual aid to understanding a product-market. 
D)  shows that managers and customers usually view present brands similarly. 
E)  always leads a firm to segmenting and not combining.

Question 16

Dimensions that should be looked at when segmenting consumer markets are: geographic location and other demographic characteristics, behavioral needs, urgency to get needs satisfied, and willingness to compare and shop.

Accepted Answer

A) True 
 B)False

Question 17

When major airlines target business travelers because they travel often and typically pay at least three times the price for a ticket as leisure travelers, these airlines are segmenting the market primarily on:

Accepted Answer

A)  income. 
B)  education. 
C)  rate of use. 
D)  ethnicity. 
E)  age. 
A)  income. 
B)  education. 
C)  rate of use. 
D)  ethnicity. 
E)  age.

Question 18

Saying that a market segment is "substantial" means that it contains customers from a variety of demographic variables.

Accepted Answer

A) True 
 B)False

Question 19

BEHAVIORAL (rather than DEMOGRAPHIC) segmenting dimensions include:

Accepted Answer

A)  type of problem-solving. 
B)  kind of shopping. 
C)  brand familiarity. 
D)  benefits sought. 
E)  All of the above are behavioral dimensions. 
A)  type of problem-solving. 
B)  kind of shopping. 
C)  brand familiarity. 
D)  benefits sought. 
E)  All of the above are behavioral dimensions.

Question 20

A generic market

Accepted Answer

A)  related to a consumer's functional need is smaller than a related product-market. 
B)  might involve competition among skis, roller blades, bicycles, and ice skates. 
C)  might logically include rubber cement, a lamp, and a CD player. 
D)  is usually narrower than the firm's target market. 
E)  All of the above are correct. 
A)  related to a consumer's functional need is smaller than a related product-market. 
B)  might involve competition among skis, roller blades, bicycles, and ice skates. 
C)  might logically include rubber cement, a lamp, and a CD player. 
D)  is usually narrower than the firm's target market. 
E)  All of the above are correct.

Exam 4: Focusing Marketing Strategy With Segmentation and Positioning

Which of the following is LEAST LIKELY to compete in the same generic market as the others?

Clustering techniques

A firm is most likely to rely on customer relationship management (CRM) approaches when it does not have a database of information on individual customers.

A product-market is one in which

The first step in market segmentation should be:

Saying that a good market segment should be "heterogeneous between" means:

If a company plans to sell its products to a market segment consisting of "outgoing personalities," this would NOT be a good market segment primarily because of which of the following criteria?

A generic market description should NOT include any:

Strategy decisions pertaining to product features, packaging, product line assortment, and branding will be most affected by which target market dimension?

Cost considerations usually favor more aggregating and larger market segments, but smaller segments may be required to satisfy needs more exactly.

The main difference between naming broad product-markets and market segmentation is:

A generic market description looks at market broadly and from a customer's viewpoint.

Which of the following statements about "segmenting" and "combining" is TRUE?

Manufacturer, service provider, government agency, wholesaler, etc. are designations used to segment business and organizational markets according to _______________.

Positioning analysis

Dimensions that should be looked at when segmenting consumer markets are: geographic location and other demographic characteristics, behavioral needs, urgency to get needs satisfied, and willingness to compare and shop.

When major airlines target business travelers because they travel often and typically pay at least three times the price for a ticket as leisure travelers, these airlines are segmenting the market primarily on:

Saying that a market segment is "substantial" means that it contains customers from a variety of demographic variables.

BEHAVIORAL (rather than DEMOGRAPHIC) segmenting dimensions include:

A generic market

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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