Deck 7: Segmentation, Target Marketing, and Positioning

Question 1

People's diverse interests and backgrounds in modern society divide them into numerous groups with distinct needs and wants, a condition most accurately described as ________.

A) market aggregation
B) market positioning
C) economic aggregation
D) differentiation
E) market fragmentation

Answer 1

E

Question 2

Technological and cultural advances contribute to market fragmentation.

Answer 2

True

Question 3

Which of the following groups are referred to as digital natives?

A) Millennials
B) Generation Y
C) Generation X
D) busters
E) Generation Z

Answer 3

E

Question 4

Which of the following best defines demographics?

A) statistics that can be used to segment populations on the basis of what people do with a product
B) statistics that can be used to segment populations on the basis of when people use a product
C) qualitative data that can be used to explain why seemingly homogeneous consumer groups do not share core characteristics
D) statistics that can be used to segment populations on the basis of shared attitudes, opinions, and interests
E) statistics that measure observable aspects of a population

Question 5

What are the steps, in order, of the target marketing process?

A) segmentation, positioning, and targeting
B) segmentation, targeting, and positioning
C) targeting, segmentation, and positioning
D) targeting, positioning, and segmentation
E) positioning, segmentation, and targeting

Question 6

Marketers often use generational marketing because members of a generation tend to share the same ________.

A) lifestyle
B) income and social class
C) outlook and priorities
D) psychographics and usage patterns
E) geodemographics

Question 7

Which of the following best describes the market segment referred to as the bottom of the pyramid (BOP)?

A) a national segment of lower income consumers
B) a national segment of non-native language speakers
C) a national segment of individuals with a high-school only education
D) a global segment of consumers who earn less than $2 per day
E) a global segment of children in lower income families

Question 8

The group of American consumers born after 1994 is often called ________.

A) Millennials
B) Generation Y
C) Generation X
D) busters
E) Generation Z

Question 9

Which of the following is true of members of Generation Z?

A) They grew up during the Great Depression.
B) They are the least diverse generation.
C) They are the first generation to grow up with access to the Internet.
D) They grew up during the Great Recession.
E) They are the largest generation.

Question 10

Some people want healthy cereal that will help them lose weight. Some want presweetened cereal. Some want fruits and nuts in their cereal. Some people want whole wheat cereal while others want rice cereal. There are some who like hot cereal and others who like to eat their cereal right out of the box. The diversity of consumers for cereal is an example of ________.

A) geodemography
B) target marketing
C) cultural diversity
D) psychographics
E) market fragmentation

Question 11

Marketers must balance the ________ of mass marketing with the ________ of offering each individual customer exactly what he wants.

A) efficiency; effectiveness
B) effectiveness; efficiency
C) investment; cost
D) cost; investment
E) positioning; scale

Question 12

Explain the major steps in the target marketing process.

Question 13

The group of American consumers born between 1979 and 1994 is often called ________.

A) the baby bust
B) the leading edge
C) Generation Y
D) tweens
E) Generation X

Question 14

Which of the following is NOT part of a target marketing strategy?

A) dividing the market into segments based on customer characteristics
B) identifying a market that is likely to buy a product
C) selecting one or more segments as target markets
D) developing a product to meet the needs of a specific market segment
E) positioning a product

Question 15

What is market fragmentation? Why is market fragmentation of concern to marketers?

Question 16

Which of the following is the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics?

A) acculturation
B) segmentation
C) market fragmentation
D) targeting
E) positioning

Question 17

Which of the following is NOT an example of a demographic segmentation variable?

A) lifestyle
B) income
C) ethnic group
D) gender
E) age

Question 18

Age, gender, place of residence, and income are all examples of ________.

A) segmentation variables
B) positioning strategies
C) market fragment strategies
D) psychographics
E) targeting strategies

Question 19

A mass marketing approach involves more advertising costs than a target marketing approach does.

Question 20

Which of the following statements about the steps in the target marketing process is true?

A) The first step in the target marketing process is setting marketing objectives.
B) There are four steps in the target marketing process.
C) The second step in the target marketing process is the identification of all segmentation variables.
D) The final step in the target marketing process is positioning.
E) The target marketing process is not related to positioning.

Question 21

Companies can customize marketing to consumers on mobile devices through ________, which delivers messages to consumers based on their real-time physical location.

A) geotargeting
B) geodemography
C) geodiversity
D) psychographics
E) profiling

Question 22

Because family needs and expenditures change over time, marketers may segment consumers by ________.

A) age
B) generation
C) family life cycle stage
D) social class
E) psychographics

Question 23

Which of the following is the most accurate generalization of Millennials?

A) Many people in this segment seem determined to have stable families after growing up as latchkey children.
B) Members of this generation are currently responsible for the majority of new start-up businesses in the United States.
C) Members of this generation were born in the years immediately following the end of World War II.
D) Members of this generation have more leisure time than members of other generations do.
E) Members of this generation are difficult to reach through traditional television advertising because they opt for streaming and digital services.

Question 24

Members of which generation were born in the years immediately following the end of World War II?

A) Echo boomers
B) Millennials
C) Baby boomers
D) the Baby bust
E) Generation Z

Question 25

________ is a term for men who are keenly interested in fashion, home design, gourmet cooking, and personal care.

A) Tween
B) Buster
C) Metrosexual
D) Bachelor
E) Slacker

Question 26

Which generation was referred to as "busters" and was thought of as slackers who are cynical about marketing?

A) Generation Y
B) Generation X
C) Baby boomers
D) Millennials
E) Generation Z

Question 27

Which of the following is a true statement about trends related to gender segmentation?

A) The education and income gap between men and women closed in the latest recession.
B) In the recent recession, women held about three in four of the jobs that were lost.
C) Men are now increasingly likely to marry women with more education and income than they have.
D) In recent decades, the economic gains of marriage have been greater for women than for men.
E) Women are now increasingly likely to marry men with more education and income than they have.

Question 28

The group of American consumers born between 1965 and 1978 are called ________.

A) Baby boomers
B) Echo boomers
C) Generation X
D) Generation Y
E) Generation Z

Question 29

Baby boomers ________.

A) were born between 1965 and 1978
B) are currently in their 30s and 40s
C) are important to marketers because of the size and wealth of the segment
D) are 75 or older
E) are the parents of Generation X, not Generation Y

Question 30

Which statement is NOT true about the Hispanic American segment?

A) The Hispanic American segment is becoming a less important segment to marketers.
B) Hispanic Americans represent almost 10 percent of American buying power.
C) Hispanic Americans tend to be brand loyal, especially to products made in their country of origin.
D) Hispanic Americans are a relatively young segment.
E) Hispanic American households are larger on average than other U.S. households.

Question 31

African Americans, Hispanic Americans, and Asian Americans are all examples of ________ segments.

A) life cycle
B) psychographic
C) ethnic group
D) social class
E) geocoding

Question 32

Which of the following best explains why marketers do not consider social class segments as strictly as they once did?

A) Many consumers buy according to the social class image they wish to portray rather than according to where they actually fall in the social class framework.
B) Due to the Great Recession, members of the upper class have become members of the middle class, and members of the middle class have become members of the lower class.
C) Data related to social class are more complicated and difficult to obtain and analyze than they once were.
D) Social class in the United States is more related to education and family history than to wealth.
E) Members of the upper and middle classes are unlikely to be attracted to any products marketed toward members of the lower classes.

Question 33

Of the following generations, which has the youngest members?

A) Baby boomers
B) Echo boomers
C) Generation X
D) Generation Y
E) Generation Z

Question 34

________ are the largest minority group in the United States.

A) African Americans
B) Asian Americans
C) Pacific Islanders
D) Hispanic Americans
E) American Indians

Question 35

The supermarket sells boxes of pink diapers and blue diapers. This is an example of segmenting by ________.

A) gender
B) age
C) ethnicity
D) social class
E) generation

Question 36

Your firm has decided to tailor its products and services to meet local market demands. A good approach to use would be ________ segmentation.

A) geographic
B) psychographic
C) usage
D) positioning
E) social class

Question 37

The Asian American segment of the population ________.

A) is the largest ethnic group market segment
B) does not yet receive significant attention from marketers
C) has shrunk in the last 10 years
D) is the fastest-growing minority group in the United States
E) is too geographically dispersed to form a meaningful market segment

Question 38

Which of the following most accurately describes PRIZM?

A) a method of removing heterogeneous variables from a target market
B) a method of data mining used to implement market development strategies
C) a database that classifies the U.S. population into segments based on geographic information, socioeconomic data, and lifestyle attributes
D) a database that classifies the international population into segments based on demographic and geographic characteristics
E) a positioning strategy used in the introduction of new consumer products

Question 39

Which of the following is a segmentation technique that combines geography with demographic information such as income, age, race, and household composition?

A) geocoding
B) geodemography
C) geodiversity
D) geotargeting
E) psychographics

Question 40

The management practice of ________ involves actively seeking people of different races, sexes, ethnic groups, and religions in an organization's employees, customers, suppliers, and distribution channel partners.

A) geodemography
B) cultural diversity
C) ethnic segmentation
D) psychography
E) social networking

Question 41

The 80/20 rule is most directly related to ________ segmentation.

A) demographic
B) behavioral
C) geodemographic
D) socioeconomic
E) psychographic

Question 42

According to the long tail approach to selling, ________.

A) the Internet provides reduced opportunities for segmenting markets
B) companies can make the most money by focusing on the "bottom-of-pyramid" market
C) companies should focus on the 20 percent of customers who purchase the greatest volume of their product
D) companies should focus on the 80 percent of customers who purchase the greatest volume of their product
E) companies can make money by selling small amounts of items that only a few people want

Question 43

Which of the following would be the best source for information about the size and number of companies operating in a particular industry in the United States?

A) PRIZM
B) AIO
C) VALS™
D) NAICS
E) ROMI

Question 44

________ is a well-known system based on psychological traits that correlate with consumer behavior. It divides the entire U.S. population into segments and then sells pieces of this information to clients for specific strategic applications.

A) VALS™
B) ROMI
C) AIO
D) PRIZM
E) NAICS

Question 45

Which type of segmentation centers on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item?

A) usage occasions
B) psychographic
C) experiential
D) demographic
E) geotargeting

Question 46

Demographic variables are so frequently used in market segmentation because they ________.

A) create smaller segments than other methods do
B) create more easily reached segments than other methods do
C) do not involve stereotypes
D) are easy to measure in comparison to many other methods
E) involve fewer attributes to consider than other methods do

Question 47

During tax season, you're likely to see more TurboTax ads on Google pages, even if you aren't searching for tax software. This is an example of ________ segmentation.

A) geodemographic
B) psychographic
C) usage occasion
D) demographic
E) geotargeting

Question 48

According to the 80/20 rule, which of the following is true?

A) 80 percent of a product's customers account for 20 percent of the product's marketing expenditures.
B) 20 percent of a product's customers account for 80 percent of the product's marketing expenditures.
C) 80 percent of a product's sales come from 20 percent of the product's purchasers.
D) 80 percent of a product's marketing cost should be equal to 20 percent of the firm's total marketing budget.
E) 80 percent of a product's market should be consumers who are 20 or older.

Question 49

Using the strategy of ________, marketers give badges to reward consumers who have progressed through an application or activity.

A) microtargeting
B) concentrated targeting
C) gamification
D) perceptual mapping
E) brand anthropomorphism

Question 50

A retailer that wants to target prospective grooms within six months of their marriage is using ________ segmentation to define its target market.

A) lifestyle
B) behavioral
C) socioeconomic
D) family life cycle
E) ethnicity

Question 51

When many men in the baby boomer segment started getting gray hair, they were reluctant to use hair dyes made for women even though they were just as eager as women to fight the aging process. To address this reluctance, hair care product manufacturers introduced hair dying systems for men to use both on their heads and their facial hair. These hair care product manufacturers used ________ segmentation to define their target markets.

A) lifestyle
B) behavioral
C) socioeconomic
D) demographic
E) psychographic

Question 52

Which two factors are key to the VALS™ system?

A) household composition and economic resources
B) age and location
C) place of usage and time of usage
D) economic resources and psychological motivators
E) education and location

Question 53

________ variables segment markets in terms of shared activities, interests, and opinions.

A) Demographic
B) Ethnographic
C) Geodemographic
D) Socioeconomic
E) Psychographic

Question 54

Loyalty programs such as Marriott Rewards and American Airlines Advantage are examples of segmentation by ________.

A) usage rate
B) occasion
C) geodemography
D) psychographics
E) geotargeting

Question 55

________ segmentation variables classify consumers on the basis of how they act toward, feel about, or use a product.

A) Demographic
B) Behavioral
C) Geodemographic
D) Socioeconomic
E) Psychographic

Question 56

A soup company found its canned nacho cheese sauce was too spicy for Americans in the East and not spicy enough for those in the West and the Southwest. As a result, the company's plants in Texas and California produce a hotter nacho cheese sauce than is produced in its other plants. The company is using ________ segmentation.

A) geographic
B) life cycle
C) psychographic
D) lifestyle
E) usage

Question 57

In developing a new shoe, Reebok targeted the youth market. It used ________ segmentation to define its target market.

A) lifestyle
B) behavioral
C) socioeconomic
D) demographic
E) psychographic

Question 58

Identifying and targeting market segments that may be as small as just one individual is known as ________.

A) geotargeting
B) micromarketing
C) psychographic segmenting
D) geodemography
E) usage segmenting

Question 59

Business-to-business marketers who look at the size of firms in terms of total sales or number of employees are using ________ to segment their market.

A) organizational psychographics
B) organizational demographics
C) organizational culture
D) behavior variables
E) usage variables

Question 60

Used as a measure of a customer's bond and loyalty to a product, ________ identifies and cultivates relationships with customers who are likely to buy a product repeatedly and recommend it to others.

A) geodemographic segmentation
B) the 80/20 rule
C) the long tail
D) customer stickiness
E) geotargeting

Question 61

Hispanic Americans are the fastest-growing minority group in the United States.

Question 62

The number of Americans aged 65 or older has decreased in recent years.

Question 63

The VALS™ system is a crucial part of geodemographic segmentation.

Question 64

Gamification refers to market segmentation using video gaming as a lifestyle.

Question 65

Magazines targeted to people who love in-line skating, people who enjoy cooking, or people who prefer living more simply use ________ segmentation variables.

A) demographic
B) ethnographic
C) geodemographic
D) socioeconomic
E) psychographic

Question 66

To market Suave shampoo, Unilever used PRIZM to identify neighborhoods with high concentrations of young working women. These women responded best to advertisements conveying the message that Suave is inexpensive, yet will make their hair "look like they spend a fortune on it." What segmentation tool did Unilever use in this example?

A) geotargeting
B) geodemography
C) the hierarchy of needs
D) behavioral
E) family life cycle

Question 67

In 2012, women were more likely than men to marry someone with less education.

Question 68

When compared to generations older than them, a greater proportion of Millennials have never been married.

Question 69

Many people entertain in their homes during months when their homes are decorated for holidays. The increase in ads for prepared trays of food to be served at these functions is directly related to ________ segmentation.

A) socioeconomic
B) geodemographic
C) geographic
D) demographic
E) usage occasion

Question 70

Content marketing is designed to establish thought leadership and to appear like the kind of content created by individuals or media organizations, rather than by advertisers.

Question 71

Age and gender are examples of demographic segmentation variables.

Question 72

The long tail approach to segmentation indicates that companies can make money selling small amounts of items that only a few people want as long as they sell enough different items.

Question 73

The members of Generation Y were born between 1965 and 1976.

Question 74

People who are regular visitors to SyFy.com (a website maintained by a science fiction cable network) and those who are regular visitors to BHG.com (a website maintained by the producers of BHG-TV and the publishers of a women's magazine) belong to different ________ segments.

A) demographic
B) ethnographic
C) geodemographic
D) socioeconomic
E) psychographic

Question 75

Starting in February and ending sometime in late April, department stores promote the fact that they stock a wide range of formal attire for high school proms. The dresses and tuxedos are available year-round, but the heaviest promotion of these products occurs in spring, when most proms are held. This spring promotion to high school students is based primarily on ________.

A) social class
B) psychographics
C) lifestyle
D) usage occasion
E) geodemography

Question 76

Which of the following is the best example of the long tail approach to selling?

A) Nearly 20 percent of the videos delivered by Netflix are older or obscure titles from its vast collection of videos.
B) Kraft Foods focuses on the 20 percent of U.S. households that purchase 80 percent of the Miracle Whip the company markets.
C) Barnes & Noble stocks the most popular books and magazines in its retail stores.
D) Google lets advertisers target certain ads to certain segments of search engine users.
E) Staples segments its business-to-business markets based on sales volume.

Question 77

The 20 percent of U.S. households that have the highest incomes have more discretionary spending than other market segments.

Question 78

Marketers using a gamification strategy often use points or badges to reward and encourage desired consumer behavior.

Question 79

In comparison to trailing-edge boomers, leading-edge boomers spend a higher proportion of their income on non-discretionary items.

Question 80

Harley-Davidson's user profile includes both thrill-seeking and affinity for a countercultural image. In addition to demographics, Harley-Davidson uses ________ segmentation to target markets.

A) value analysis
B) social class
C) geodemographic
D) socioeconomic
E) psychographic