Deck 6: Customer-Driven Marketing Strategy: Creating Value for Target Customers

Question 1

Demographic variables are the most popular bases for segmenting customer groups because they ________.

A) create smaller segments
B) create more easily accessible segments
C) do not involve stereotypes
D) are easier to measure
E) involve fewer attributes to consider

Answer 1

D

Question 2

Firms that manufacture seasonal products target their consumers primarily through ________ segmentation.

A) psychographic
B) demographic
C) income
D) occasion
E) age and life-cycle

Answer 2

D

Question 3

________ factors are the most popular bases for segmenting customer groups.

A) Geographic
B) Demographic
C) Behavioral
D) Lifestyle
E) Personality

Answer 3

B

Question 4

Zindle,an American smartphone-manufacturing firm,targets children below the age of ten by providing free games and applications.The firm's marketing approach is reflective of a(n)________ segmentation.

A) age and life-cycle
B) geographic
C) occasion
D) gender
E) income

Question 5

At one time,Miller Beer was known as the "champagne of bottled beer." It was targeted at an elite class of customers.Later,to increase sales,Miller was repositioned to attract members of the working,middle-class.What is this segmentation method called?

A) user status
B) usage rate
C) benefit
D) behavioral
E) psychographic

Question 6

Pediacertain Pet Supplies,a pet-food company,divides the pet market according to the pet owners' gender,occupation,income,and family life cycle.In this case,which of the following variables has the company used for market segmentation?

A) geographic
B) psychographic
C) benefit
D) demographic
E) occasion

Question 7

________ is the process of evaluating the attractiveness of different market segments and selecting one or more segments to enter.

A) Differentiation
B) Mass marketing
C) Market targeting
D) Market segmentation
E) Positioning

Question 8

Dividing buyers into groups based on their knowledge,attitudes,uses,or responses to a product is called ________ segmentation.

A) behavioral
B) psychographic
C) age and life-cycle
D) user status
E) geographic

Question 9

Which type of market segmentation is generally used by marketers who sell products for the affluent segments of a population?

A) usage rate
B) occasion
C) income
D) benefits sought
E) gender

Question 10

Pacific Fisheries groups its customers by regions in the U.S.,such as Midwest,Northeast,and Southwest.For each region,Pacific Fisheries tailors a different set of advertisements and promotions.Based on which of the following segmentation variables does the firm divide its market?

A) behavioral factors
B) personality characteristics
C) geographic location
D) benefits sought
E) demographics

Question 11

________ consists of arranging for a market offering to occupy a clear,distinctive,and desirable place relative to competing products in the minds of target consumers.

A) Differentiation
B) Positioning
C) Market targeting
D) Market segmentation
E) Mass marketing

Question 12

Senz,an automobile manufacturer,produces low-end vehicles that are targeted toward lower-income consumer groups.Senz most likely segments the consumer market based on ________ variables.

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

Question 13

Zista,a boutique that caters to the clothing needs of women,manufactures two different lines of fashion wear based on the purchasing power of its customers.One product line caters to the needs of affluent,middle-aged women,and the other line targets younger professionals and homemakers.Zista most likely segments the consumer market based on ________ variables.

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

Question 14

Shampoo marketers segment buyers as light,medium,or heavy product users.This is an example of ________ segmentation.

A) user status
B) usage rate
C) benefits sought
D) occasion
E) psychographic

Question 15

Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy?

A) market segmentation, differentiation, positioning, and market targeting
B) positioning, market segmentation, mass marketing, and market targeting
C) market segmentation, market targeting, differentiation, and positioning
D) market alignment, market segmentation, differentiation, and market positioning
E) market recognition, market preference, market targeting, and market insistence

Question 16

Rasco Corp.segments its foreign markets based on the income levels of a country's population.In this case,the firm segments its market based on ________.

A) political factors
B) legal factors
C) personality factors
D) economic factors
E) cultural factors

Question 17

Markets can be segmented into groups of nonusers,ex-users,potential users,first-time users,and regular users of a product.This method of segmentation is called ________.

A) user status segmentation
B) usage rate segmentation
C) benefit segmentation
D) behavioral segmentation
E) loyalty status segmentation

Question 18

ProFem Inc.caters its line of sports apparel exclusively to women.What type of segmentation does the company use?

A) age and life-cycle
B) gender
C) behavior
D) psychographic
E) geographic

Question 19

The marketing manager at Frizzles' Eateries targets customers who are working to lose weight but who still want to dine out.The restaurant chain offers a wide variety of low-fat,low-calorie meals that appeal to dieters.Frizzles' approach is best referred to as ________ segmentation.

A) age and life-cycle
B) user status
C) benefit
D) demographic
E) geographic

Question 20

Gold Class Electricals,a consumer-electronics firm,targets market segments based on factors such as country,age,social class,usage rate,and benefits sought.The company divides its markets based on ________.

A) demographic variables
B) geographic regions
C) multiple segmentation bases
D) behavioral variables
E) psychographic segmentation bases

Question 21

When a company interacts one-on-one with large numbers of customers to create customer-unique value by designing products and services tailor-made to individual needs,it is engaging in ________.

A) concentrated marketing
B) mass marketing
C) mass customization
D) differentiated marketing
E) local marketing

Question 22

Which of the following is true about local marketing?

A) It does not cater to individual stores.
B) It does not support evolving technologies.
C) It increases manufacturing costs.
D) It increases economies of scale.
E) It reduces logistical issues.

Question 23

Unlike other car rental agencies that are based in airports to serve travelers,Wheelz-On-Rent has a network of neighborhood offices.The firm strives to serve people who need car rentals for reasons other than vacation,such as when their own cars are being repaired.Wheelz-On-Rent caters to a small share of the large car rental market.From this description,it can be concluded that Wheelz-On-Rent most likely practices ________.

A) undifferentiated marketing
B) multi-segmented marketing
C) individual marketing
D) local marketing
E) concentrated marketing

Question 24

The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________.

A) niche marketing
B) micromarketing
C) segmented marketing
D) global marketing
E) undifferentiated marketing

Question 25

Marketing the same product to a huge customer base without any customization is referred to as ________.

A) mass marketing
B) differentiated marketing
C) niche marketing
D) local marketing
E) individual marketing

Question 26

Which of the following is an approach where firms target a whole market based on common consumer needs?

A) demographic segmentation
B) undifferentiated marketing
C) micromarketing
D) concentrated marketing
E) geographic segmentation

Question 27

Compared with undifferentiated marketing,differentiated marketing is more likely to lead to ________.

A) reduced sales in each market segment
B) weaker product position in each market segment
C) higher costs of doing business
D) redundancy in product design across market segments
E) smaller market share in the industry

Question 28

When a market segment is large or profitable enough to serve,it is termed ________.

A) measurable
B) accessible
C) substantial
D) actionable
E) differentiable

Question 29

Market segments that can be effectively reached and served are said to be ________.

A) measurable
B) accessible
C) substantial
D) actionable
E) profitable

Question 30

Producers of popular beverages often partner with global music channels to target consumers through a variety of promotional events and advertisements.This approach to marketing is referred to as ________ segmentation.

A) intermarket
B) income
C) age and life-cycle
D) occasions
E) gender

Question 31

When the size,purchasing power,and profiles of a market segment can be determined,the market segment is said to be ________.

A) measurable
B) accessible
C) substantial
D) actionable
E) observable

Question 32

When an effective program can be designed for attracting and serving a chosen segment,the segment is best described as ________.

A) accessible
B) measurable
C) reachable
D) actionable
E) differentiable

Question 33

A market segment is less attractive when ________.

A) there are few aggressive competitors in the segment
B) it is difficult for new entrants to enter the segment
C) it contains powerful suppliers who can control prices
D) substitute products are unavailable in the segment
E) buyers in the market segment have weak bargaining powers

Question 34

A successful niche marketing strategy relies on a firm's ________.

A) availability of services
B) product positioning
C) superior products
D) knowledge of customer needs
E) affordable pricing

Question 35

Marketers tailoring brands and promotions to the needs and wants of specific customer groups practice ________.

A) niche marketing
B) multi-segmented marketing
C) local marketing
D) mass marketing
E) individual marketing

Question 36

BritWay Ventures,a leading producer of soft drinks,is considering a differentiated marketing strategy.It is most likely important that the company weighs increased sales against ________ before selecting this strategy.

A) decreased production
B) increased demand
C) increased costs
D) decreased prices
E) increased profits

Question 37

By offering product and marketing variations to segments and developing a stronger position within several segments,companies hope to create more total sales through segmented marketing than ________ marketing across all segments.

A) undifferentiated
B) differentiated
C) niche
D) local
E) individual

Question 38

When market segments are conceptually distinguishable and respond distinctively to various marketing mix elements and programs,they are said to be ________.

A) accessible
B) measurable
C) reachable
D) differentiable
E) observable

Question 39

________ marketing tailors brands and promotions to the needs and wants of specific cities,neighborhoods,and even stores.

A) Differentiated
B) Mass
C) Niche
D) Local
E) Individual

Question 40

Port Orleans Shipping markets different services to the tourism,defense,and trade segments.The firm designs separate offers for each segment based on their needs.This approach is called ________ marketing.

A) concentrated
B) differentiated
C) individual
D) mass
E) local

Question 41

The less-for-much-less positioning involves meeting consumers' requirements for ________.

A) moderate quality at a higher price
B) lower quality for a lower price
C) lower quality at a higher price
D) higher quality at a discounted rate
E) higher quality at the lowest possible price

Question 42

Which of the following types of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage,expertise,and performance?

A) services differentiation
B) channel differentiation
C) people differentiation
D) product differentiation
E) price differentiation

Question 43

Which of the following includes the target segment of a product,the category to which the product belongs,and the product's point of difference from other members in the category?

A) mission statement
B) vision statement
C) profit statement
D) positioning statement
E) inventory statement

Question 44

Which of the following is true of product positioning?

A) A product's position is defined by the number of competitors in a market.
B) Product positioning has little influence on the design of marketing mixes.
C) Consumers generally reevaluate products every time they make a buying decision.
D) To simplify the buying process, consumers are likely to position products in their minds.
E) Consumers cannot position products without the help of marketers.

Question 45

Which of the following is true of perceptual positioning maps?

A) They are used by marketers to divide a market into smaller groups with distinct characteristics.
B) They are used by marketers to identify supplier and retailer perceptions of a product.
C) They are used to analyze consumer perceptions of a brand versus competing products.
D) They are used to divide buyers into groups based on their perceived income and age.
E) They are used to plot the geographic segments that a company needs to target.

Question 46

Stores offering low-quality alternatives to luxury products at low prices most likely follow a ________ positioning strategy.

A) more-for-the-same
B) more-for-less
C) same-for-less
D) less-for-much-less
E) more-for-more

Question 47

Household Storez,a local retail store,claims to offer better products at lower prices than other retail stores.In this case,the firm's positioning reflects a ________ value proposition.

A) more-for-the same
B) more-for-less
C) same-for-less
D) more-for-more
E) same-for-more

Question 48

Through ________,brands can be differentiated on features,performance,or style and design.

A) people differentiation
B) channel differentiation
C) price differentiation
D) services differentiation
E) product differentiation

Question 49

Company and brand positioning should be summed up in a ________.

A) mission statement
B) vision statement
C) profit statement
D) positioning statement
E) corporate statement

Question 50

Companies are likely to gain ________ through speedy,convenient,or careful delivery of products.

A) price differentiation
B) product differentiation
C) channel differentiation
D) services differentiation
E) people differentiation

Question 51

Which of the following strategies is most likely to be followed by firms that position themselves as caterers of the best products at economical prices?

A) more for the same
B) more for less
C) same for less
D) more for more
E) less for much less

Question 52

Rad,a manufacturer of luxury watches,charges a higher price for its products than its competitors.Despite the high prices,the brand is popular among customers for its quality and service in comparison to cheaper alternatives available in the market.In this case,Rad offers a(n)________ value proposition.

A) more-for-more
B) more-for-the-same
C) more-for-less
D) all-or-nothing
E) same-for-less

Question 53

Customers recognize the products of Breads & Butters,a coffee shop,by identifying the "twisted bread" logo that helped the firm revolutionize its products.In this case,the firm has differentiated itself through its ________.

A) image
B) people
C) services
D) channels
E) positioning

Question 54

A brand difference is said to be preemptive if ________.

A) competitors cannot easily copy the difference
B) buyers can afford to pay for the difference
C) the difference can be introduced profitably
D) the difference is communicable
E) the difference is beneficial to customers

Question 55

Estel,a kitchen-cabinet manufacturer,positions its cabinets as furniture with superior craftsmanship and durability.This is an example of ________ differentiation.

A) product
B) services
C) image
D) people
E) channels

Question 56

Argonaut Food Stores,a retail giant,hires better-skilled employees than its competitors by employing strategic recruitment practices.It also conducts highly specialized training programs for its employees.In this case,Argonaut has focused on gaining a strong competitive advantage through ________ differentiation.

A) image
B) people
C) services
D) product
E) channel

Question 57

Zeal is a popular automobile brand,and its positioning statement reads as follows: "For upscale American families who require large vehicles,Zeal is the automobile of choice." Which of the following mandatory elements is missing from the positioning statement?

A) point of difference
B) target audience
C) brand name
D) product category
E) need

Question 58

When firms use symbols,colors,or characters to convey their personalities,they are using ________ differentiation.

A) image
B) people
C) usage-rate
D) user-status
E) channel

Question 59

Using a(n)________ positioning strategy,companies can attack the more-for-more strategy of another firm by offering a brand of comparable quality at a lower price.

A) more-for-the-same
B) more-for-less
C) the-same-for-less
D) less-for-much-less
E) less-for-more

Question 60

Which positioning strategy offers value for consumers by providing the same brands as competitors at a lower price?

A) more for the same
B) more for less
C) the same for less
D) less for much less
E) more for more

Question 61

Demographic factors are the most popular bases for segmenting customer groups.

Question 62

New communications technologies are likely to eliminate the need for markets to be geographically segmented as clusters of countries.

Question 63

For market segments to be beneficial for companies,they must be measurable.

Question 64

LaGrange,a floral boutique,segments its customers into three groups: those who frequently use their services,those who have never used their services,and potential users.This is an example of usage-rate segmentation.

Question 65

Clusters of marketable groups of customers with similar likes,dislikes,lifestyles,and purchase behaviors can be identified by multivariable segmentation systems that merge and analyze geographic,demographic,lifestyle,and behavioral data.

Question 66

Companies with limited financial and personnel resources should most likely avoid concentrated or niche marketing until their earnings improve.

Question 67

Josie's,a gift store with a presence in multiple nations,divides its markets into units of nations,regions,and cities.This is an example of geographic segmentation.

Question 68

The largest,fastest-growing market segments are generally the most attractive ones for smaller companies.

Question 69

Marketers typically limit their market segmentation analysis to a single variable in order to simplify the process.

Question 70

Using a differentiated marketing strategy,a company is likely to design a product and a marketing program that will appeal to the largest number of buyers.

Question 71

Companies today are moving away from target marketing and toward mass marketing.

Question 72

A market segment with powerful suppliers controlling the prices is more attractive than a segment with less powerful suppliers.

Question 73

Even if a segment has the right size and growth and is structurally attractive,a company must consider its own objectives and resources before targeting that segment.

Question 74

Demographic variables are generally more difficult to measure than most other types of variables.

Question 75

Light users are often a small percentage of a company's market but account for a high percentage of total consumption.

Question 76

While designing a customer-driven marketing strategy,marketers are likely to divide the market into smaller segments.

Question 77

Business and consumer marketers use many of the same variables to segment their markets.

Question 78

Marketers must be careful to guard against stereotypes when using age and life-cycle segmentation.

Question 79

A segment is more attractive if it already contains many strong and aggressive competitors.

Question 80

Companies that use income segmentation always target the affluent.