Deck 8: Identifying Market Segments and Targets

Question 1

The process of selecting one or more market segments to enter is called ________.

A) market targeting
B) market dominance
C) market positioning
D) market segmentation
E) market research

Answer 1

A

Question 2

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) geographic
D) cultural
E) behavioral

Answer 2

C

Question 3

__________ defines a person's major concern, such as going through a divorce, going into a second marriage, taking care of an older parent, deciding to cohabit with another person, deciding to buy a new home, and so on.

A) Product stage
B) Age stage
C) Life stage
D) Income stage
E) Occupation stage

Answer 3

C

Question 4

Which of the following statements about market segmentation is true?

A) It involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.
B) It is a process of evaluating each segment's attractiveness and selecting one or more to enter.
C) It is a process of creating an image or identity of the product in the minds of the target market.
D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants.
E) It is the quality of how marketers go to market with the goal of optimizing their spending to achieve good results.

Question 5

Men and women tend to have different ________________________, based partly on genetic make-up and partly on socialization.

A) needs and wants
B) needs, wants and demands
C) logistical requirements
D) attitudinal and behavioral orientations
E) communication needs

Question 6

________ are products such as Kiehl's skin care and Kendall-Jackson wines that are priced between average middle-market and superpremium old luxury brands and are also based on emotions.

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

Question 7

Even when the target market is described in __________ terms (say, a personality type), the link back to demographic characteristics is needed to estimate the size of the market and the media that should be used to reach it efficiently.

A) non-demographic
B) non-geographic
C) non-behavioral
D) non-psychographic
E) demographic

Question 8

Joe and Emily have just divorced. Which of the following demographic segmentation sub-segment formats might be used by marketers to reach Joe and Emily?

A) life stage
B) benefits
C) age segment
D) personality type
E) social class

Question 9

In a growing trend called __________ marketing, such activities concentrate on getting as close and personally relevant to individual customers as possible.

A) grassroots
B) behavioral
C) retail
D) business
E) VALS

Question 10

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) loyalty status
B) behavioral occasions
C) user status
D) psychographic lifestyle
E) readiness stage

Question 11

By mapping the densest areas, the retailer can resort to ____________, assuming that the best prospects live where most of his customers come from.

A) product cloning
B) service cloning
C) customer cloning
D) cluster cloning
E) human cloning

Question 12

Behavioral segmentation variables include:

A) benefits, user status and income
B) benefits, user status and usage rate
C) benefits, user status and age
D) benefits, user status and occupation
E) benefits, user status and culture

Question 13

Robert is the owner of an car 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) occupation
B) family size
C) benefits
D) nationality
E) user status

Question 14

Newlyweds are an example of a(n) ________ segment.

A) life stage
B) age
C) behavior
D) user status
E) income

Question 15

Hilton Hotels customizes rooms and lobbies according to location. This is an example of ________ segmentation.

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

Question 16

Establishing and communicating the distinctive benefit(s) of the company's market offering, for each target segment is called ________.

A) market research
B) market positioning
C) marketing effectiveness
D) market segmentation
E) market dominance

Question 17

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

A) vertical marketing system
B) market basket
C) market share
D) market segment
E) market level

Question 18

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

A) life stage
B) gender
C) age
D) income
E) social class

Question 19

Regardless of the type of segmentation scheme used, the key is adjusting the marketing program to recognize ________.

A) the level of disposable income earned by the target group
B) customer differences
C) the cost-benefit relationship of narrowing the target market
D) customer complaints
E) saturated markets

Question 20

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) guerrilla marketing
D) affinity marketing
E) grassroots marketing

Question 21

According to the VALS segmentation system, ________ are considered to be trendy and fun-loving people who are resource-constrained. They favor stylish products that emulate the purchases of those with greater material wealth.

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

Question 22

The sale of turkeys in Singapore is highest in December, as people buy turkeys to serve at Christmas. Supermarkets who specifically advertise turkeys at this time of year are segmenting on the basis of ________.

A) benefits
B) user status
C) buyer-readiness stage
D) demographics
E) occasion

Question 23

The key to attracting potential users, or even possibly nonusers, is ________.

A) understanding the reasons they are not using
B) offering financial incentives for first-time use
C) increasing the usage rate of existing users
D) developing a new product that better meets their needs
E) increasing advertising expenditures

Question 24

China's Gen Y are significantly more entrepreneurial and _______ than their parents, and with market reform, can more easily become entrepreneurs.

A) computer game savvy
B) capitalistic
C) conventional
D) simplistic
E) pessimistic

Question 25

According to the VALS segmentation system, ________ are conservative, conventional, and traditional people with concrete beliefs.

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

Question 26

According to the VALS segmentation system, ________ are considered to be elderly, passive people who are concerned about change and are loyal to their favorite brands.

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

Question 27

Rock band Foo Fighters created a digital street team that sends targeted email messages to members who receive exclusive news, previews, and opportunities to win prizes. The Foo Fighters are using ________ to reach Generation Y.

A) student ambassadors
B) unconventional sports
C) cool events
D) computer games
E) online buzz

Question 28

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

A) Psychographics
B) Interactionism
C) Clustering
D) Demographic transition
E) Customerization

Question 29

Each ________ or cohort is profoundly influenced by the times in which it grew up-the music, movies, politics, and defining events of that period.

A) consumer
B) baby boomer
C) Generation Yer
D) generation
E) person

Question 30

Dennis requests his father to buy him a PlayStation® for his birthday. With respect to consumer decision roles, which role is Dennis currently playing?

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

Question 31

According to the VALS segmentation system, ________ are successful, goal-oriented people who focus on career and family. They favor premium products that demonstrate success to their peers.

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

Question 32

Which of the following statements about Gen Xers is true?

A) Gen Xers are more optimistic and team-oriented.
B) Gen Xers are selective, confident, and impatient.
C) Gen Xers are highly socially conscious and concerned about environmental issues.
D) Gen Xers share many of the same values toward work, family, and society as baby boomers.
E) Technology is a barrier for Gen Xers.

Question 33

Kim is a young professional who enjoys wakeboarding and going to rock concerts with her friends. According to the VALS eight-part typology segmentation system, Kim is best described as a(n) ________.

A) thinker
B) achiever
C) experiencer
D) striver
E) survivor

Question 34

According to the VALS 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) innovators
B) thinkers
C) achievers
D) experiencers
E) believers

Question 35

Mature and reflective people who seek durability, functionality, and value in products are most likely to be categorized as ________ in the VALS system.

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

Question 36

If a marketing manager employs such marketing techniques as online buzz, student ambassadors, cool events, and street teams to reach target markets, the manager is most likely appealing to the ________ market.

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

Question 37

Which of the following statements about Gen Yers is true?

A) They are often turned off by overt branding practices and "hard sell".
B) They are more likely to associate retirement with "the beginning of the end".
C) They are more pragmatic and individualistic.
D) They were born between 1964 and 1978.
E) They were the first generation to find surpassing their parents' standard of living a serious challenge.

Question 38

________ 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) Old luxury brand extensions
D) Masstige goods
E) Accessible superpremium products

Question 39

A hardware store is 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, or the ________ category.

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

Question 40

According to the VALS segmentation framework, consumers primarily motivated by ideals are guided by ________.

A) knowledge
B) social activity
C) products that demonstrate success to their peers
D) variety
E) risk

Question 41

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

Question 42

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

Question 43

A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can help identify the products' strengths.

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

Question 44

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) Step 2-segment identification
B) Step 3-segment attractiveness
C) Step 6-segment "acid test"
D) Step 1-needs-based segmentation
E) Step 7-marketing-mix strategy

Question 45

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

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

Question 46

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

Question 47

A marketer interested in segmenting a business market based on ________ intends to eventually segment the market based on power structure and nature of existing relationship.

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

Question 48

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 shifting loyal
D) a hard-core loyal
E) a switcher

Question 49

In the ________ step of the market segmentation process, the marketer evaluates the segment using criteria such as market growth and market access.

A) need-based segmentation
B) segment identification
C) segment attractiveness
D) segment profitability
E) segment "acid test"

Question 50

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) purchasing approaches
C) personal characteristics
D) operating variables
E) demographic variables

Question 51

If a marketer is seeking to segment a business market, which of the following variables is generally felt to be the most important?

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

Question 52

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

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

Question 53

Pete always buys Purina dog food for his dog because he believes that it is the best value for the nutritional content. Pete's loyalty status is best described as ________.

A) split loyal
B) shifting loyal
C) consistent loyal
D) hard-core loyal
E) switcher

Question 54

In the ________ step of the market segmentation process, the marketer determines which demographics, lifestyles, and usage behaviors make each needs-based segment distinct and identifiable.

A) segment "acid test"
B) segment attractiveness
C) segment profitability
D) need-based segmentation
E) segment identification

Question 55

A marketer is interested in segmenting a business market based on urgency of delivery and the size of the order. Which of the following major segmentation variables would the marketer most likely use to assist with the task?

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

Question 56

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

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

Question 57

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

Question 58

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) geographic segmentation
D) global segmentation
E) short-term segmentation

Question 59

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

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

Question 60

When Amy goes shopping for clothes, she goes into every store in the mall looking for the best deal. She is very price-conscious. On the basis of loyalty status, Amy can be described as ________.

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

Question 61

Marketers usually identify niches by ________.

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

Question 62

A segment should be the largest possible ___________ group worth going after with a tailored marketing program.

A) homogeneous
B) heterogeneous
C) diffused
D) clustered
E) scattered

Question 63

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

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

Question 64

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

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

Question 65

To meet the ________ criterion of useful market segments, it must be possible to formulate effective programs for attracting and serving the segments.

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

Question 66

According to the ________ criterion for useful market segments, a segment should be the largest possible homogenous group worth going after with a tailored marketing program.

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

Question 67

Coca Cola's original marketing strategy that offered a single drink Coca Cola Classic in a single sized bottle with the advertising theme "Coke is it," is an example of ________ marketing.

A) concentrated
B) niche
C) differentiated
D) micro
E) undifferentiated

Question 68

Which of the following statements is true about the five forces identified by Michael Porter that determine the intrinsic long-run attractiveness of a market or market segment?

A) A segment is unattractive if the company's suppliers are unable to raise prices or reduce quantity supplied.
B) A segment is unattractive if buyers possess strong or growing bargaining power.
C) A segment is attractive when there are actual or potential substitutes for the product.
D) A segment is attractive if it already contains numerous, strong, or aggressive competitors.
E) The most attractive segment is one in which entry barriers are low and exit barriers are high.

Question 69

Cosmetics firm Estée Lauder markets brands that appeal to women (and men) of different tastes: The flagship brand, the original Estée Lauder, appeals to older consumers; Clinique caters to middle-aged women; M.A.C. to youthful hipsters; Aveda to aromatherapy enthusiasts; and Origins to eco-conscious consumers who want cosmetics made from natural ingredients. This is an example of ________ marketing.

A) undifferentiated
B) differentiated
C) concentrated
D) niche
E) micro

Question 70

In ________ marketing, the firm ignores segment differences and goes after the whole market with one offer.

A) niche
B) mass
C) guerrilla
D) segmented
E) differentiated

Question 71

Which of the following best represents the chief advantage of pursuing a selective specialization multisegment strategy?

A) It makes the company almost bulletproof to competitors' actions.
B) It diversifies the firm's risk.
C) It creates synergy between markets.
D) It is a low-cost strategy.
E) It treats all buyers the same and, therefore, lowers promotion costs.

Question 72

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

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

Question 73

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

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

Question 74

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

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

Question 75

If married and unmarried women respond similarly to a sale on perfume, these hypothetical segments fail the ________ criterion for useful market segments.

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

Question 76

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

A) the company's objectives and resources
B) the effectiveness of the suppliers
C) the flexibility of legal rules governing the business
D) the socio-economic infrastructure
E) the global nature of the product

Question 77

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

Question 78

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

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

Question 79

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 part contains the product and service elements that all segment members value?

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

Question 80

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

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