Deck 6: Market Segmentation and the Marketing Mix

Question 1

Psychographics are useful in the marketing of all products.

Answer 1

False

Question 2

To reach people who love to hunt,marketers would use psychographic segmentation.

Answer 2

True
Explanation: Marketers use psychographic segmentation to group people by their values, attitudes, personality, and lifestyle.

Question 3

Brand equity is the totality of what consumers,distributors,dealers,and competitors feel and think about a brand over an extended period of time.

Answer 3

True

Question 4

The process of market segmentation is a three-step process that begins with planning,then goes to product definition,and ends with market identification.

Question 5

A marketer of an organic soap completely free of animal ingredients,colors,and fragrances would want to stimulate selective demand for its brand of soap.

Question 6

A marketer of organic soups would need to stimulate primary demand for its brand of soups.

Question 7

Differences between products that are readily apparent to the consumer are called visible variations.

Question 8

When a manufacturer of orange juice introduced lemonade,it used private labeling.

Question 9

As products enter the maturity stage of their product life cycle,prices tend to rise.

Question 10

Network marketing is also called pyramid marketing.

Question 11

User status is one way marketers create benefit segmentation.

Question 12

Psychographics enables marketers to view people as individuals with feelings and inclinations.

Question 13

Advertising for a movie that tells you the movie is a "family-filled riot of fun" is attempting to use benefits-sought segmentation.

Question 14

Advertisers can use NAICS codes to obtain lists of companies in particular businesses for direct mailings.

Question 15

The first step in market aggregation is to determine the primary demand trend within the targeted market.

Question 16

Another name for selective distribution is cooperative distribution.

Question 17

The target market for doll designed to embody the image of a proper Muslim woman is Arab parents as well as their Arab daughters.

Question 18

Demographic segmentation would most likely be used to sell a doll designed to embody the image of a proper Muslim woman.

Question 19

By using behavioristic segmentation,marketers know people traditionally buy turkeys for Thanksgiving meals but not for Easter,Christmas,or any other holiday meals.

Question 20

Advertising is called mass or nonpersonal selling.

Question 21

The ad for a brand's products reads,"Filling your kitchen with delicious aromas is a great way to ensure that your Thanksgiving holiday will be full of joyful anticipation." It would seem that the manufacturer of these products is using:

A) demographic segmentation.
B) benefit segmentation.
C) temporal segmentation.
D) psychographic positioning.
E) lifestyle segmentation.

Question 22

Many people give fine chocolates as Christmas presents to friends and co-workers.The only time of year you will see a very luxurious brand of chocolates advertised is during November and December as the company tries to create awareness for its product in the minds of consumers looking for that perfect utilitarian gift.This would be an example of:

A) purchase-occasion segmentation.
B) psychographic positioning.
C) demographic segmentation.
D) lifestyle segmentation.
E) volume segmentation.

Question 23

Booklets,catalogs,brochures,sales kits,and annual reports can be called bilateral materials.

Question 24

Cell phone companies spend many advertising dollars appealing to people who are already heavy users of cell phones to encourage them to buy plans that offer them additional minutes.These cell phone companies are using:

A) purchase-occasion segmentation.
B) psychographic positioning.
C) demographic segmentation.
D) lifestyle segmentation.
E) volume segmentation.

Question 25

According to the text,market segmentation is a two-step strategic process.The first step is to:

A) conduct advertising research that determines consumers' reactions to various ad campaigns.
B) identify groups of people with certain shared characteristics.
C) aggregate groups of people or organizations into larger market segments.
D) develop place, time, and possession utility.
E) determine which personal influences will have the appropriate effect on consumers.

Question 26

Free samples and premiums belong to the communication function of the marketing mix.

Question 27

Through marketing research,an insurance company discovered that about 40 percent of its sales were initiated by current customers rather than company insurance agents.With this knowledge it used what kind of behavioristic segmentation variable to segment its market into policy holders and nonpolicy holders?

A) User status
B) Usage rate
C) Benefits sought
D) Purchase occasion
E) Demographic

Question 28

Telemarketing is a direct-marketing technique.

Question 29

While other Florida cities are trying to prevent college students from invading their beaches,the Panama City Beach Convention & Visitors Bureau is tempting college students from the U.S.and Canada to hit its beaches for Spring Break 2006.What segmentation variables are most obviously being used in this strategy?

A) Usage rate and user status
B) Psychographics and positioning
C) Purchase occasion and demographics
D) Loyalty status and region
E) Readiness stage and geographics

Question 30

Home builders are using _____ segmentation to target people over 55 with homes that have wheelchair-friendly door widths,lever door handles,roll-out shelves,raised toilets,and direct 911 wiring.

A) demographic
B) psychographic
C) diffused
D) geographic
E) psychological

Question 31

Which of the following is an example of a variable used in demographic segmentation?

A) Population density
B) Personality
C) Purchase occasion
D) Usage rate
E) Income

Question 32

As part of the planning process,companies use marketing and advertising research.

Question 33

Several new editions of a popular Christian book have recently been published.One is targeted to 17-year-old girls,and one is targeted to Christian sports fans.What type of segmentation strategies are the publishers using?

A) Usage rate and sole users
B) Behavioristic and geographic
C) Geographic and demographic
D) Demo-clustering
E) Psychographic and demographic

Question 34

People who may buy organic soups would usually be those who are vegetarians,people who want to try something different,people who like soup,people who do not have time to cook,and people who worry about putting chemicals in their bodies.These groups are all examples of _____ for the soup.

A) innovators
B) market segments
C) market aggregations
D) diffusers
E) buying centers

Question 35

A manufacturer of wax for snow skis must offer different versions of its product so that it will work in areas where the snow tends to be wet and heavy,in regions where the snow is packed,and in places where the snow is a fine powder.These modifications in response to regional differences are referred to as _____ segmentation.

A) demographic
B) psychographic
C) geographic
D) volume
E) psychological

Question 36

With _____,marketers group people by their values,attitudes,personality,and lifestyle.

A) demographics
B) psychographics
C) geodemographics
D) attitudinal positioning
E) lifestyle positioning

Question 37

A visitor's guide uses an ad with the following headline: "Join some others who got inspired here," and then lists the famous authors that came from this area of the state ending with a "your name here" blank.The message in this headline indicates the city is using _____ to attract tourists.

A) psychographic positioning
B) benefit segmentation
C) demographic segmentation
D) geodemographic segmentation
E) volume segmentation

Question 38

In October 2006,Wal-Mart Stores began a store segmentation process that will tailor merchandise in each store to its local consumer base.At the same time,Wal-Mart is going to modify its in-store network,Wal-Mart TV,to run different ads in separate store departments rather than the same ad storewide.In other words,individual stores will rely on _____ strategies.

A) geodemographic
B) psychographic
C) behavioristic
D) geographic
E) psychological

Question 39

According to the text,market segmentation is a two-step strategic process.The second step is to:

A) conduct advertising research that determines consumers' reactions to various ad campaigns.
B) identify groups of people with certain shared characteristics.
C) locate as many market niches as possible.
D) develop place, time, and possession utility.
E) aggregate groups of people or organizations into larger market segments.

Question 40

If the supply of a product is static but the demand for it decreases,the price tends to rise.

Question 41

The _____ element of the marketing mix includes the way the product is designed and classified,positioned,branded,and packaged.

A) utility
B) communication
C) distribution
D) product
E) customer

Question 42

The _____ refers to the consumer's perception of the product as a bundle of values of utilitarian and symbolic values aimed at satisfying various functional,social,psychological,economic,and other consumer needs and wants.

A) total product concept
B) marketing mix
C) targeted product
D) product attribution
E) product utility

Question 43

One company manufactures sweatshirts that,according to ad testimonials,"capture the essence of a cat and the heart of its owner." This company is using _____ segmentation to market its shirts.

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

Question 44

A pizza restaurant buys fountain drinks,which it sells to its customers.The pizza restaurant is an example of a(n):

A) consumer market.
B) VALS market.
C) reseller.
D) wholesaler.
E) business-to-business market.

Question 45

Over the past decade,brands that were once available exclusively to the wealthiest among us have created more affordable product extensions,giving a far broader range for consumers who want to taste the good life.Jaguar,for instance,recently launched its X-type sedan,which starts at $30,000 and is meant for the "almost rich" consumer who aspires to live in luxury.By marketing to people who desire a luxurious lifestyle,Jaguar is using:

A) demographic segmentation.
B) psychographic segmentation.
C) geodemographic segmentation.
D) attitudinal positioning.
E) loyalty segmentation.

Question 46

What is the next step for a marketer once market segmentation has been done?

A) Target marketing process
B) Budgeting process
C) Creating brand equity
D) Selection of the promotional objectives
E) Competitive assessment

Question 47

When compared to consumer markets,business markets:

A) contain many more buyers.
B) have systematic purchasing procedures.
C) can be segmented using psychological variables.
D) have more dispersed markets.
E) do not employ professional buyers.

Question 48

Purchase decisions in the business market are often made on the basis of _____; business marketers should emphasize these issues in their promotional appeals.

A) product demonstrations
B) quantity
C) product image
D) relationship with the retailer
E) product price

Question 49

Consumer demand for a whole product category such as DVD players,pickles,or laptop computers is called _____ demand.

A) primary
B) selective
C) positioned
D) category
E) maturity

Question 50

Before starting a canine clothing company,its owner realized that he was treating his dog as if it were a child and that a lot of his friends did the same thing.So in what he perceived as a dog-friendly environment,he launched a line of doggie pajamas-available from size 6 for Chihuahuas to size 30 for Great Danes.The ads for the pajamas had to convince people that dogs slept better in pajamas.A product that has to create primary demand is more than likely to be in the _____ stage of the product life cycle.

A) declining
B) introductory
C) maturity
D) growth
E) revitalization

Question 51

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

A) The target marketing process will determine the content, look, and feel of a company's advertising.
B) The first step in the target marketing process is to develop primary demand in a target market.
C) To perform the target marketing process correctly, an advertiser must select one and only one target market.
D) From the view of a marketer, the target marketing process begins with the setting of the advertising budget.
E) The first step in target marketing is to assess which of the newly created segments offer the greatest profit potential and which can be the most successfully penetrated.

Question 52

_____ includes basic principles,tangible markers of success or accomplishment,or a desire for experiences or to take risks.

A) Primary motivation
B) Elaboration likelihood model
C) Reciprocal activation
D) Conditioning theory
E) Motivational mapping

Question 53

The North American Industry Classification System (NAICS)codes:

A) will soon be replaced by the strategic industrial classification.
B) are published by the North American Treaty Alliance.
C) organize all industries in our economy into 20 broad sectors.
D) have no relevance for marketers outside the United States.
E) were developed in co-operation with Brazil and China.

Question 54

Two bowling alleys are three miles apart.Customers went to the bowling alley on the eastside of town for relaxation and exercise.The priority wasn't exclusively on bowling; the activity could just as easily have been billiards or swimming.The customers at the bowling alley on the west side of town went bowling primarily to meet and interact with friends.Many of the league bowlers in this facility were employed in repetitive task jobs.The lanes were a place to compete with their peers and excel.This situation describes the _____ for using the bowling alleys.

A) primary motivation
B) selective perception
C) reciprocal activation
D) perceptual motivation
E) motivational mapping

Question 55

To appeal to a new target market,a maker of coffee has changed the product's package design,reformulated the coffee,begun advertising price discounts in women's magazines,and started distributing the product through gourmet coffee shops.What exactly has been changed?

A) The product's physiological screens.
B) The product's 4 Ps.
C) The product's evoked set.
D) The ownership of the product line.
E) The product's utility.

Question 56

Hard apple cider is making a comeback.Cider consumption should hit 15 million cases annually this decade.Early adopters of cider are the same group that first gravitated to the microbreweries.Apple cider drinkers like the notion that it is basically a fruit drink.It conjures up healthy associations and appeals to people who do not view themselves as serious connoisseurs.What segmentation variable should a cider brewery use to define its market?

A) Usage rate
B) Geographic
C) Demographic
D) Psychographic
E) Purchase occasion

Question 57

Which of the following marketing activities most likely takes place in the business market?

A) The sale of a hammer to a do-it-yourselfer.
B) The rental of an apartment by a college student.
C) The purchase of babysitting services for a small child.
D) The purchase of a case of soup by a supermarket.
E) The payment of a fee to a divorce lawyer.

Question 58

A farming company has partnered with a corn growing company to create a new feed for cattle made out of corn fiber.During the _____ stage of the product,advertising costs will be high as the farming company tries to establish itself as a market leader and gain a large share of the market before the product enters the growth stage.

A) dissonance
B) introductory
C) maturity
D) decline
E) revitalization

Question 59

The _____ for disposable washcloths with extra gentle baby wash built right in is first-time parents who have a good supply of discretionary income and who value their time more highly than they value their environment.

A) reference group
B) geographic market
C) target market
D) market aggregate
E) marketing mix

Question 60

The Values and Lifestyles (VALS)typology uses a two-dimensional structure based on:

A) geographic variables and consumer perceptions.
B) consumer behavior and product characteristics.
C) primary motivation and resources.
D) self-orientation and product differentiation.
E) target marketing strategy and product positioning strategy.

Question 61

When pharmaceutical companies began advertising directly to consumers,it was an example of _____.The pharmaceutical companies realized that consumer demand influences which medications a physician will prescribe.

A) indirect consumer marketing
B) promotion equity
C) scrambled promotion
D) a push strategy
E) a pull strategy

Question 62

Another name for manufacturer's brands is:

A) private brands.
B) umbrella brands.
C) national brands.
D) family brands.
E) individual brands.

Question 63

A food company in Massachusetts makes six different brands of dairy products.There are a number of different dairy products marketed under each brand.The company uses a _____ branding strategy.

A) individual
B) lifestyle
C) national
D) family
E) group

Question 64

When Hannah buys almond soap from a vendor at an arts and crafts show,and the vendor actually made the soap from scratch,the purchase was made through a(n)_____ distribution channel.

A) selective
B) indirect
C) direct
D) unbranded
E) networked

Question 65

After a television network decided to show an hour-long sci-fi show,as part of its new fall line-up,it had to develop _____ demand for the product.

A) primary
B) selective
C) synergistic
D) intensive
E) secondary

Question 66

Flour is a commodity just as a diamond is.But brand-name flour and a brand-name diamond are distinguishable from other,similar commodities and have more value as a result of:

A) hidden difference.
B) pull strategy.
C) primary demand.
D) branding.
E) perceptual filter.

Question 67

A brand of home products are sold by a distributor under her own brand to attract younger Hispanic audiences.This is an example of:

A) aggregated brands.
B) private labels.
C) manufacturer's brands.
D) indirect consumer promotions.
E) licensed branding.

Question 68

The basic goal of a positioning strategy is to:

A) own a word that establishes the product in the prospect's mind.
B) offer new products directly to the late adopters.
C) create demand for the whole product and not just for the company's own brand.
D) minimize product differentiation.
E) create and maintain primary demand for a product.

Question 69

The _____ stage of the product life cycle is characterized by rapid market expansion,more and more customers,and a decrease in total advertising expenditures as a percentage of total sales.

A) pioneering
B) introductory
C) maturity
D) growth
E) revitalization

Question 70

The difference between regular soups and organic soups is not readily visible.The organic brand differentiates itself by claiming to be 100 percent organic.This is an example of a:

A) hidden difference.
B) differentiation cue.
C) imperceptible difference.
D) sensory cue.
E) perceptual filter.

Question 71

There are many different brands of soup and soup mixes on the shelves of most supermarkets.A manufacturer of organic soup would like to create _____ so that its customers will perceive why it is a better brand of soup than all the rest on the market.

A) secondary demand
B) selective demand
C) primary demand
D) pioneering demand
E) utility of demand

Question 72

One brand represents an image of dairy foods that are a trusted,healthy "part of your life,whatever your style." While all dairy products are considered healthy,this brand enhances its image by giving consumers a variety of choices in products and flavors,valuable information about eating right and staying fit,and by consistently producing the best-tasting,best-quality products in its region.This describes how the brand is:

A) positioned in the market.
B) geographically segmented.
C) in the declining stage.
D) used to create primary demand.
E) used to minimize product differentiation.

Question 73

One company provides its resellers with elaborate point-of-purchase displays to encourage the resellers to stock and promote the distillery's products.In this example,this company is using:

A) indirect consumer marketing.
B) promotion equity.
C) scrambled promotion.
D) a push strategy.
E) a selecting perception.

Question 74

In a recent television show,a police officer tried to interest his co-workers in selling vitamins.He was an independent distributor of a vitamin manufacturer.His job was to recruit other salespeople and encourage them to recruit their friends to sell the vitamins.The police officer was involved in:

A) direct marketing.
B) network marketing.
C) parallel distribution.
D) partnering distribution.
E) market aggregation.

Question 75

In the _____ stage of the product life cycle,the marketplace becomes saturated with competing products and the number of new customers dwindles,so industry sales reach a plateau.

A) saturation
B) introductory
C) maturity
D) growth
E) revitalization

Question 76

Several new editions of a book targeted at various market segments have recently been published.The majority were published by a publisher who identified the needs and wants of various groups of people and discovered that most wanted a book that more closely related to their own personal lives and interests.The publisher uncovered a(n)_____ demand.

A) primary
B) selective
C) synergistic
D) intensive
E) maturity

Question 77

If you look at an organically-grown tomato and one that has been chemically-enhanced,you can easily see the difference.One is not perfectly formed and uniformly red and the other is.In terms of product differentiation,this is an example of a:

A) hidden difference.
B) differentiation cue.
C) perceptible difference.
D) sensory cue.
E) perceptual filter.

Question 78

_____ is the totality of what consumers,distributors,dealers,and competitors feel and think about a brand over an extended period of time.

A) Brand acceptance
B) Market value
C) Brand commitment
D) Brand equity
E) Product loyalty

Question 79

A brewing company markets caffeinated alcoholic beverage under the two different brands.Both brands are fast-growing and profitable.Since a distinct target market has been identified for each brand,it was essential that the brewery use a(n)_____ branding strategy with this product line.

A) private
B) lifestyle
C) individual
D) family
E) group

Question 80

A promotion was launched to position a brand as a fun line of condiments for a variety of everyday usage occasions.Its promotions showed vignettes of families,children and older Americans enjoying foods flavored with same brand-name condiments.The fact that all of these mustards have the brand is an example of:

A) individual branding.
B) regional branding.
C) psychological branding.
D) private labeling.
E) family branding.