Deck 8: Identifying Market Segments and Targets

Question 1

In ________ marketing, the seller engages in the mass production, mass distribution, and mass promotion of one product for all buyers.

A) general
B) mass
C) group
D) segmented
E) differentiated

Answer 1

B

Question 2

A ________ consists of a group of customers who share a similar set of needs and wants.

A) market slice
B) market level
C) market group
D) market segment
E) market target

Answer 2

D

Question 3

Instead of scattering their marketing effort (a "shotgun" approach), many companies are now embracing target marketing where the focus is on those consumers that they have the greatest chance of satisfying (a ________ approach) with their products and services.

A) "niche"
B) "focused"
C) "micro"
D) "rifle"
E) "macro"

Answer 3

D

Question 4

The argument for ________ marketing is that it creates the largest potential market, which leads to the lowest costs, which in turn can lead to lower prices or higher margins.

A) micro
B) macro
C) differentiated
D) niche
E) mass

Question 5

The low-budget, insurance-replacement market represents a(n) ________ market for Enterprise Car Rental.

A) benefit
B) virtual
C) niche
D) experiential
E) viral

Question 6

When discussing the "long-tail thesis", Chris Anderson of Wired magazine says that if you aggregate enough minority taste, you'll often

A) have to predict demand.
B) find a big new market.
C) be unable to tap into latent demand.
D) resort to traditional retail.
E) raise the cost of distribution.

Question 7

Which of the following best describes an attractive niche?

A) The niche has diminished in size and growth.
B) The customers generally have smaller amounts of income.
C) The customers will not pay a premium to the firm that satisfies their needs.
D) The niche attracts several competitors in the same category.
E) The customers in the niche have a distinct set of needs.

Question 8

If a marketing manager segments the market into culture-oriented, sports-oriented, or outdoor-oriented groups, he or she is segmenting on the basis of ________.

A) attitude toward product
B) user status
C) behavioral occasions
D) loyalty status
E) psychographic lifestyle

Question 9

Marketers usually identify niches by

A) producing products that can be used in a variety of ways.
B) dividing a segment into subsegments.
C) allowing consumers to gravitate toward product brands.
D) examining the demographics section of The Handbook of Marketing.
E) conducting VALS tests.

Question 10

When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats?

A) differentiated marketing
B) affiliate marketing
C) grassroots marketing
D) guerrilla marketing
E) affinity marketing

Question 11

The marketer's task is to _________ the segments and decide which one(s) to target.

A) plans
B) creates
C) divide
D) controls
E) identify

Question 12

Enterprise Rent-A-Car has challenged Hertz's supremacy in the rental car market by tailoring its marketing program to a relatively neglected target market. Which of the following would be the most accurate description of that market?

A) the singles market
B) the soccer mom market
C) the low-budget, insurance-replacement market
D) the vacationer market
E) the business traveler market

Question 13

When Baskin-Robbins dropped all TV advertising to focus on "three-mile" marketing with more emphasis on local events and promotion, they were engaging in

A) grassroots marketing.
B) customerization.
C) experiential marketing.
D) one-to-one marketing.
E) niche marketing.

Question 14

If a marketer decides to segment a market based on neighborhoods, the marketer will have chosen the ________ method of segmentation.

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

Question 15

Anderson and Narus have urged marketers to present flexible market offerings to all members of a segment. A flexible market offering consists of two parts. Which of those parts contains the product and service elements that all segment members' value?

A) virtual solution
B) pseudo solution
C) naked solution
D) maximum solution
E) discretionary solution

Question 16

A ________ consists of two parts: a naked solution and discretionary options.

A) rigid market offering
B) vertical market offering
C) flexible market offering
D) differentiated market offering
E) horizontal market offering

Question 17

When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats?

A) instructional marketing
B) consumer marketing
C) partner marketing
D) grassroots marketing
E) differentiated marketing

Question 18

The target market for some products may be the ______ young. Because the average age of Element buyers turned out to be 42, Honda decided that the lines between age groups were getting blurred.

A) categorically
B) psychologically
C) physiologically
D) demographically
E) physically

Question 19

When Coca-Cola sold only one kind of Coke in a 6.5-ounce bottle, it was practicing what is called

A) macromarketing.
B) mass marketing.
C) segmented marketing.
D) primary marketing.
E) micromarketing.

Question 20

Niche marketers presumably understand their customers' needs so well that the customers willingly _____

A) change neighbourhoods.
B) pay a premium.
C) abandon other brands.
D) make long-term commitments.
E) disclose private information.

Question 21

Online commerce has led to a shift in consumer buying patterns. Two aspects of internet shopping have led to this shift. First, greater choice is permitted by increased inventory and variety, and second,

A) the mass market focuses on generating "hit" products.
B) the search costs of finding relevant new products are lowered.
C) consumers prefer catalogue channels to online retailers.
D) the distribution of product sales conforms to a curve.
E) demand has shifted from niche products to hits.

Question 22

PRIZM (Potential Rating Index by Zip Markets) identifies clusters of consumers based on a variety of characteristics such as education and affluence. Which of the following clusters would match to a consumer group that is characterized as being couples or single-headed households, most of them with kids, who have decided to stay in urban centres rather than flee to the suburbs?

A) the cosmopolitans
B) young digerati
C) blue bloods
D) winner's circle
E) beltway boomers

Question 23

________ is the science of using psychology and demographics to better understand consumers.

A) Social psychology
B) Segmentation
C) Demographics
D) Clustering
E) Psychographics

Question 24

Generation Y is marked by racial diversity, and they are ________.

A) highly socially conscious
B) single-focused
C) stress-free
D) anti-community
E) pessimistic

Question 25

A marketing manager is considering several options to market to market segments identified as being either culture-oriented, sports-oriented, or outdoor-oriented. This manager has selected the ________ format for segmenting markets.

A) personality
B) psychographic lifestyle
C) user status
D) behavioural occasions
E) readiness stage

Question 26

With respect to user status (a segmentation possibility), ________ tend to focus on attracting potential users because they have the most to gain.

A) niche firms
B) smaller firms
C) aggressive specialists
D) market-share leaders
E) followers

Question 27

If a marketer decides to segment a market based on neighbourhoods, the marketer will have chosen the ________ method of segmentation.

A) cultural
B) demographic
C) social class
D) geographic
E) psychographic

Question 28

Men and women tend to have different attitudinal and behavioural orientations, based partly on genetic makeup and partly on

A) occupation.
B) globalization.
C) heredity.
D) income.
E) socialization.

Question 29

According to the VALS 8-part typology segmentation system, ________ are successful, sophisticated, active, "take-charge" people with high self-esteem. Their purchases often reflect cultivated tastes for relatively upscale, niche-oriented products and services.

A) thinkers
B) achievers
C) innovators
D) believers
E) experiencers

Question 30

The ________ refers to parents being influenced by their Generation Y children still living at home.

A) youth-obsessed effect
B) sandwich effect
C) silent generation effect
D) boom-boom effect
E) cohort effect

Question 31

________ combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product service offering of their choice.

A) Viral marketing
B) Regionalization
C) Consumptionization
D) Customerization
E) Virtual marketing

Question 32

According to the major segmentation variables for consumer markets, which of the following would be the appropriate segment category to target young, marrieds?

A) lifestyle
B) generation
C) family life cycle
D) family size
E) age

Question 33

Robert is the owner of an automobile manufacturing company. He calls for a board meeting and tells his directors that he wants to build a car that lets the users experience power and exhilaration. He tells them that the car must allow his users to soar from 0-60 mph in about 4 seconds. He also adds in that the price of the car must be affordable enough for anybody making a good salary. In accordance with the given scenario, Robert is trying to segment the market on the basis of ________.

A) social class
B) life style
C) income
D) benefits
E) user rate

Question 34

A marketer of wines identified six different benefit segments in the premium wine market. ________ (14 percent of the market) tend to buy the same brands since they don't know much about wine.

A) Savvy Shoppers
B) Satisfied Sippers
C) Image Seekers
D) Enthusiasts
E) Overwhelmed

Question 35

Two broad groups of variables are used to segment consumer markets. One method uses descriptive characteristics such as geography. The other method is to form segments by looking at ________ considerations.

A) income
B) cultural
C) behavioural
D) gender
E) interest

Question 36

A housewife requests a new treadmill for her birthday. With respect to consumer decision roles, which role is the housewife currently playing?

A) gatekeeper
B) initiator
C) decider
D) influencer
E) buyer

Question 37

If a marketing researcher uses such names (categories) as Young Degerati, Mini Van &Vin Rouge, Lunch at Tim's, and Park Bench Seniors, when doing segmentation research, the marketing researcher is using ________ clusters.

A) psychographic
B) behavioral
C) PRIZM
D) demographic
E) VALS

Question 38

Jose and Erika have just divorced. This will obviously not only have an impact on their personal lives but their consumptive lives as well. Which of the following demographic segmentation subsegment formats might be used by marketers to reach Jose or Erika?

A) life stage
B) user segment
C) benefits
D) age segment
E) occasion segment

Question 39

Income does not always predict the best customers. For instance, ________ were among the first purchasers of colour television sets.

A) the social elite
B) blue-collar workers
C) the homeless
D) white collar executives
E) upper middle class professionals

Question 40

According to the VALS 8-part typology segmentation system, ________ are considered to be elderly, passive people who are concerned about change. They are loyal to their favourite brands.

A) makers
B) experiencers
C) strivers
D) survivors
E) believers

Question 41

A snack chip manufacturer is concerned about consumers leaving its brand and going to competitive alternatives. Which of the following groups (based on strength of commitment) would be most likely to leave the company's offering and go somewhere else for snack products?

A) shifting loyals
B) hard-core loyals
C) split loyals
D) average
E) entrenched

Question 42

Costco Wholesale Corp. has unveiled a store in downtown Vancouver. One of its objectives is to

A) get closer to smaller businesses such as convenience stores.
B) segment by purchase criteria.
C) switch from B2B markets to consumer markets.
D) develop a super-segment.
E) segment based on buyer-seller similarity.

Question 43

Which of the following major segmentation variables for business markets is considered an operating variable?

A) company size
B) specific application
C) attitudes toward risk
D) customer capabilities
E) power structure

Question 44

To be useful, market segments must rate favourably on five key criteria. In the ________ criterion, effective programs can be formulated for attracting and serving the segments.

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

Question 45

If a market is segmented according to light, medium, and heavy product users, the marketer segmenting this market is using the ________ as the means to segment.

A) user status
B) benefit
C) buyer-readiness stage
D) usage rate
E) occasion

Question 46

When a symphony orchestra targets people who have broad cultural interests, rather than only those who regularly attend concerts, the orchestra is targeting what are called

A) occasion segments.
B) strategic segments.
C) psychodemographic segments.
D) supersegments.
E) market mavens.

Question 47

A company can be said to have used ________ if the company distinguished business customers buying on the basis of price, service, and quality.

A) global segmentation
B) strategic segmentation
C) macrosegmentation
D) short-term segmentation
E) microsegmentation

Question 48

Pampers divides its market demographically on the basis of ________ into prenatal, new baby, baby, toddler, and preschooler.

A) user status
B) social class
C) education
D) age
E) family life cycle

Question 49

Unlike an isolated segment, a ________ is a set of segments sharing some exploitable similarity.

A) differentiable
B) needs-based market
C) multi-segment
D) super-segment
E) mega-segment

Question 50

In evaluating different market segments, the firm must look at two factors: the segment's overall attractiveness and

A) the global nature of the product.
B) competition's strategies.
C) company's objectives and resources.
D) the product to be sold.
E) the purchasing process.

Question 51

Volkswagen concentrates on the small-car market and Porsche on the sports car market. These would be examples of what is called

A) market specialization.
B) selective specialization.
C) product specialization.
D) single-segment concentration.
E) full market coverage.

Question 52

During which step of the segmentation process would the marketer group customers into segments based on similar needs and benefits sought by the customer in solving a particular consumption problem?

A) segment identification
B) segment attractiveness
C) needs-based segmentation
D) marketing-mix strategy
E) segment "acid test"

Question 53

A company can learn a great deal by analyzing the degrees of brand loyalty. For example, by studying the ________ the company can pinpoint which brands are most competitive with its own.

A) anti-loyals
B) hard-core loyals
C) shifting loyals
D) switchers
E) split loyals

Question 54

If an organization's marketing department wished to create "segment storyboards" to test the attractiveness of each segment's positioning strategy, this action would most likely occur in the ________ step of the segmentation process.

A) marketing-mix strategy
B) needs-based segmentation
C) segment identification
D) segment "acid test"
E) segment profitability

Question 55

If a buyer is loyal to two or three different brands of soap, this buyer's loyalty status can be described as being among the

A) shifting loyals.
B) switchers.
C) hard-core loyals.
D) split loyals.
E) anti-loyals.

Question 56

All of the following are benefits of following the ________ approach to target market selection: a strong knowledge of the segment's needs, a strong market presence, operating economies through specializing in production, distribution, and promotion.

A) selective specialization
B) single-segment concentration
C) product specialization
D) full market coverage
E) market specialization

Question 57

A company can identify its ________ by studying its hard-core loyals.

A) user status
B) shifting loyals
C) competitors
D) products' strengths
E) marketing weaknesses

Question 58

A marketer is interested in segmenting a business market on ________ if the marketer intends to eventually segment the market based on loyalty and attitudes toward risk.

A) situational factors
B) personal characteristics
C) operating variables
D) purchasing approaches
E) demographics

Question 59

If a marketer is seeking to segment a business market, which of the following variables is so pupular with marketers because they are often associated with consumer needs and wants?

A) operating variables
B) personal characteristics
C) purchasing approaches
D) demographic
E) situational factors

Question 60

A marketer is interested in segmenting a business market based on technology and customer capabilities. Which of the following major segmentation variables would most likely be used by the marketer to assist with the task?

A) purchasing approaches
B) personal characteristics
C) situational factors
D) demographic
E) operating variables

Question 61

Not all attempts to target children, minorities, or other special segments draw criticism. Which of the following is the best illustration of a company (or industry) that seems to be marketing to the above in a correct and ethical way?

A) McDonald's marketing to inner-city youth
B) R. J. Reynolds marketing of the Kool brand
C) RBC's sponsorship of the Wicket Cricket program
D) the toy industry's tendency to overwhelm children's defences
E) the cereal industry's approaches to children

Question 62

Which of the following costs that are likely to be lower if a marketer pursues an undifferentiated marketing approach?

A) administrative costs
B) service costs
C) advertising costs
D) pricing costs
E) management costs

Question 63

As a brand manager you have decided to use the full market coverage approach in marketing to your customers. Within the full market coverage approach, you have selected a(n) ________ strategy whereby your firm will operate in several market segments and design different products for each segment.

A) concentrated
B) differentiated
C) undifferentiated
D) introverted
E) parallel

Question 64

The chief disadvantage to a firm that decides to follow a product specialization strategy in selecting target markets is that

A) logistics can become a nightmare.
B) competitors can easily copy any new product introductions.
C) no synergy exists.
D) the product may be supplanted by an entirely new technology.
E) e-commerce becomes difficult for the company.

Question 65

A marketer is interested in segmenting a business market on ________ if the marketer intends to segment the market based on industries and geographical areas to serve.

A) situational factors
B) operating variables
C) demographic variables
D) purchasing approaches
E) personal characteristics

Question 66

Eddie Bauer, an upscale sportswear retailer, has used a ________ approach such as PRIZM to better locate stores and serve customers.

A) diffusing
B) discretionary
C) customer cloning
D) guerillas against gorillas
E) customizing

Question 67

A marketing manager has decided to take a "purchasing approach" to segmenting a proposed business market. Which of the following would be a potential means sub-segments for segmenting under this approach?

A) attitudes toward risk
B) purchasing-function organization
C) customer capabilities
D) size of order
E) specific application

Question 68

If your assignment was to create a "value proposition" and product-price positioning strategy based on the segment's unique customer needs and characteristics, you would be in which of the following steps of the segmentation process?

A) segment "acid-test"
B) segment positioning
C) needs-based segmentation
D) segment identification
E) segment attractiveness

Question 69

________ are products such as the Mercedes Benz C-class and the American Express Blue card, that extend historically high-priced brands down-market while retaining their cachet.

A) Hourglass products
B) Mass market products
C) Masstige goods
D) Old Luxury brand extensions
E) Accessible superpremium products

Question 70

With ________ as a target market strategy, the firm concentrates on serving many needs of a particular customer group.

A) selective specialization
B) full market coverage
C) market specialization
D) product specialization
E) single-segment concentration

Question 71

A hardware store has decided to use the VALS segmentation system to target consumers. The store is particularly interested in reaching people who are characterized by the VALS system as being practical, down-to-earth, and self-sufficient who like to work with their hands. Which of the following VALS categories most likely matches to the hardware store's segment of interest?

A) Makers
B) Strivers
C) Experiencers
D) Survivors
E) Believers

Question 72

Linda was buying all her groceries from Home Needs supermarket for the past 5 years. She recently came across The Convenience Store, another supermarket just a few miles away from her place and started buying her groceries from them. Linda can be best described as ________.

A) a split loyal
B) an antiloyal
C) a hard-core loyal
D) a shifting loyal
E) a switcher

Question 73

The two ways that large firms can cover a whole market (e.g., full market coverage strategy) are through ________ and differentiated marketing.

A) niche
B) undifferentiated
C) logistical
D) psychological
E) macromarketing

Question 74

Television networks and concert promoters should be very interested in what demographers are calling the "boom-boom effect", which means

A) products that appeal to 20-somethings also appeal to baby boomers.
B) consumers are demanding more "bang for their buck".
C) companies must have success quickly or go bust.
D) Generation X and their taste for violence will dominate the market in the future.
E) baby boomers still rule the marketplace.

Question 75

A brand funnel can be used by marketers to help characterize

A) lifestyle associations.
B) buyer-readiness stages.
C) decision roles.
D) benefits sought.
E) loyalty status.

Question 76

A marketing manager targeting Generation Y should be aware that this group is turned off by

A) the "soft sell".
B) overt branding practices.
C) cool events.
D) online buzz.
E) unconventional sports.

Question 77

In segmenting its markets, an aluminum company first looked at which end-use market to serve: automobile, residential, or beverage containers. This is an example of ________.

A) macrosegmentation
B) microsegmentation
C) multiple segments
D) need-based segmentation
E) industry segmentation

Question 78

In ________ marketing, the firm operates in several market segments and designs different products for each segment.

A) undifferentiated
B) niche
C) geodemographic
D) segmented
E) differentiated

Question 79

Increasingly, companies are finding that their markets are ________ as middle-market consumers migrate toward both discount and premium products.

A) "hourglass-shaped"
B) "circular"
C) "triangle-shaped"
D) "inverted"
E) "linear"

Question 80

Mothers-to-be are potential users who will turn into heavy users of infant products and services. By targeting mothers-to-be as future heavy users, producers of these products and services are segmenting consumers on the basis of ________.

A) attitude
B) buyer-readiness stage
C) loyalty status
D) user status
E) benefits