Deck 8: Identifying Market Segments and Targets

Question 1

According to PRIZM,the ________ cluster is characterized as being in their late forties and fifties,college-educated,upper-middle-class homeowners that married late and are still raising children in comfortable suburban subdivisions and are still pursuing kid-centered lifestyles?

A)Cosmopolitans
B)Beltway Boomers
C)Young Digerati
D)Winner's Circle
E)Old Milltowns

Answer 1

B

Question 2

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

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

Answer 2

E

Question 3

A niche is characterized as being all of the following EXCEPT that ________.

A)the customers in the niche have a distinct set of needs
B)the customers will pay a premium to the firm that satisfies their needs
C)the niche is not likely to attract other competitors
D)the customers generally have smaller amounts of income
E)the nicher gains certain economies through specialization

Answer 3

D

Question 4

When segmenting on the basis of family life cycle,all of the following are segment categories EXCEPT ________.

A)young,single
B)male,female
C)young,married
D)older,married,no children under 18
E)young,married,youngest child 6 or over

Question 5

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 similarities
E)saturated markets

Question 6

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

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

Question 7

Those who favor localized marketing see national advertising as wasteful because ________.

A)it gets too up close and personal with consumers
B)it drives up manufacturing and marketing costs by reducing economies of scale
C)it magnifies logistical problems
D)it fails to address local needs
E)all of the above

Question 8

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)social class

Question 9

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)usage rate
C)buyer-readiness stage
D)occasion
E)benefit

Question 10

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

Question 11

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)Consumer marketing
C)Instructional marketing
D)Partner marketing
E)Grassroots marketing

Question 12

If a marketing manager observes that his or her market shows no natural segments and consumers seem to have roughly the same preferences,the marketing manager will most likely be faced with a ________ preferences pattern.

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

Question 13

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 14

Men and women tend to have different attitudinal and behavioral orientations,based partly on genetic makeup and partly on ________.

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

Question 15

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 16

Procter & Gamble has many soap brands.One reason for this is that soap users tend to group together in terms of preferences such as bleaching action,softness,stain removal,et cetera.Which of the following preferences pattern would most likely apply to P&G's method of response to market needs?

A)Homogeneous preferences
B)Diffused preferences
C)Clustered preferences
D)Psychological preferences
E)Cultural preferences

Question 17

Jose and Erika have just divorced.Which of the following demographic segmentation subsegment formats might be used by marketers to reach Jose or Erika?

A)Life stage
B)Benefits
C)Age segment
D)User segment
E)Occasion segment

Question 18

All of the following are disadvantages of customerization EXCEPT that ________.

A)it requires more prior information about the customer than most customers are willing to share
B)it is difficult to implement for complex products
C)it can raise the cost of goods by more than the customer is willing to pay
D)some customers don't know what they want until they see the actual product
E)the product may be hard to repair and have little sales value

Question 19

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

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

Question 20

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

Question 21

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 22

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)usage rate
B)buyer-readiness stage
C)loyalty status
D)user status
E)benefits

Question 23

Kim is a young professional who enjoys snowboarding 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 24

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)Convertible
B)Shallow
C)Average
D)Entrenched
E)Hard rocks

Question 25

Rock band Foo Fighters created a digital street team that sends targeted e-mail 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 26

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)strategic segmentation
D)goal-based segmentation
E)short-term segmentation

Question 27

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 28

The sale of turkeys in the United States is highest in mid- to late November,as people buy turkeys to serve at Thanksgiving.Grocery stores who specifically advertise turkeys at this time of year are segmenting on the basis of ________.

A)benefits
B)user status
C)psychographics
D)demographics
E)occasion

Question 29

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

Question 30

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

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

Question 31

With respect to occasion segmentation,Christmas,Valentine's Day,and ________ account for just over half of gifters' budgets.

A)Halloween
B)Father's Day
C)Mother's Day
D)Thanksgiving
E)Independence Day

Question 32

All of the following are considered to be product attitude segments EXCEPT ________.

A)synergistic
B)enthusiastic
C)positive
D)indifferent
E)hostile

Question 33

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 34

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

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

Question 35

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

A)Initiator
B)Influencer
C)Decider
D)Buyer
E)Gatekeeper

Question 36

________ are products such as Kiehl's skin care and Kendall-Jackson wines that are priced between average middle-market and superpremium Old Luxury brands.

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

Question 37

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)survivors
E)experiencers

Question 38

A behavioral segmentation method related to the Conversion Model is the Gravity of Decision Spectrum.On the shallow end of the spectrum,consumers seek products and services they think will ________.

A)make them appear more wealthy than they are
B)help them save face in publicly visible situations
C)reinforce their emotional stability
D)align with their core values and beliefs
E)save them time,effort,and money

Question 39

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 40

If a consumer group is designated based on their "balance of disposition," the ________ group can be described as one that is made up of nonusers who are as attracted to a competing brand as they are to their current brands.

A)strongly unavailable
B)weakly unavailable
C)ambivalent
D)available
E)desirable

Question 41

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 42

Johnson & Johnson broadened its target market for its baby shampoo to include adults through ________.

A)countersegmentation
B)metamarketing
C)undifferentiated marketing
D)product specialization
E)single-segment concentration

Question 43

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

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

Question 44

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 45

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

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

Question 46

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

Question 47

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 48

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 49

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 50

A marketer interested in segmenting a business market based on ________ intends to eventually segment the market based on power structure and purchasing criteria.

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

Question 51

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 52

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 53

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)Demographic variables
B)Purchasing approaches
C)Situational factors
D)Personal characteristics
E)Operating variables

Question 54

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 55

________ is the strategic coordination of economic,psychological,political,and public relations skills,to gain the cooperation of a number of parties in order to enter or operate in a given market.

A)Metamarketing
B)Macromarketing
C)Micromarketing
D)Megamarketing
E)Modular marketing

Question 56

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 57

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 a target segment in a correct and ethical way?

A)McDonald's marketing to inner-city youth
B)R.J.Reynolds marketing of the Kool brand
C)Colgate-Palmolive's Colgate Junior toothpaste
D)The cereal industry's approaches to children
E)G.Heileman Brewing's approach to Colt 45 malt liquor

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

Question 59

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 60

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 61

Local marketing reflects a growing trend called macromarketing.

Question 62

Demographic variables are extremely popular because they are often associated with consumer needs and wants and they are easy to measure.

Question 63

An attractive niche is characterized as having a distinct set of needs.

Question 64

Average U.S.household income has risen in the past 30 years,with growth highest for the top 20% of households.

Question 65

The ultimate level of segmentation leads to "segments of one," "customized marketing," or "one-to-one marketing."

Question 66

Research has shown that income is a highly accurate predictor of the "best" customers for a given product.

Question 67

Life stage defines a person's age.

Question 68

A market segment consists of a group of consumers who share a similar set of needs and wants.

Question 69

Customer cloning is the practice of identifying the key characteristics of a market segment and then identifying multiple geographic areas where the majority of the population possesses those characteristics.

Question 70

Effective target marketing requires that marketers use market segmentation,market targeting,and market positioning to achieve success in the marketplace.

Question 71

Henry Ford epitomized the market segmentation strategy when he offered the Model-T Ford in only one color.

Question 72

In order to maintain acceptable levels of sales and profits,marketers target only middle- and high-income groups of consumers.

Question 73

A company is customerized when it is able to respond to individual customers by customizing its products,services,and messages on a one-to-one basis.

Question 74

A local service company has decided to segment its market based on occupation;therefore,it has chosen a form of demographic segmentation for its approach.

Question 75

A marketer glances at this month's market-preference pattern diagram and notices that all of the customers are grouped in the middle of the diagram;therefore,customers are exhibiting clustered preferences.

Question 76

Markets are almost always homogeneous.

Question 77

With respect to market offerings,if a marketer emphasizes a naked solution,he or she is emphasizing the product and service elements that all segment members value.

Question 78

Research shows that men and women shop differently.Men often like to read product information;women may relate to a product on a more personal level.

Question 79

Illustrations of personality segmentation would include culture-oriented,sports-centered,or outdoor-oriented subsegments.

Question 80

Members of the same generational cohort share the same major cultural,political,and economic experiences and have similar outlooks and values.