Deck 7: Customer-Driven Marketing Strategy: Creating Value for Target Customers

Question 1

________ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.

A) Benefit
B) Occasion
C) Geographic
D) Demographic
E) Psychographic

Answer 1

E

Question 2

________ segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

A) Geographic
B) Benefit
C) Occasion
D) Psychographic
E) Demographic

Answer 2

E

Question 3

Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?

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

Answer 3

D

Question 4

"Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods." This is an example of ________.

A) geographic segmentation
B) product diversification
C) branding
D) psychographic segmentation
E) demographic segmentation

Question 5

Malcolm Sanders, a graduate student from Boston, makes customized snowboards for local snowboarding enthusiasts. The demand for snowboards peaks during the winter months, a busy time for Malcolm. He advertises more aggressively and sells most of his snowboards around this time. Which market segmentation approach does Malcolm most likely use?

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

Question 6

________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods.

A) Benefit segmentation
B) Geographic segmentation
C) Demographic segmentation
D) Psychographic segmentation
E) Occasion segmentation

Question 7

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes college students, as an untapped group of potential customers for their new line of products, they were engaging in ________.

A) occasion segmenting
B) local marketing
C) market diversification
D) market targeting
E) product positioning

Question 8

________ involves actually distinguishing the firm's market offering to create superior customer value.

A) Mass customization
B) Differentiation
C) Market segmentation
D) Diversifying
E) Targeting

Question 9

________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.

A) Behavioral
B) Psychographic
C) Age and life-cycle
D) Gender
E) Geographic

Question 10

________ consists of evaluating each market segment's attractiveness and selecting one or more market segments to enter.

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

Question 11

Which of the following refers to a behavioral segmentation variable that involves segmenting markets into nonusers, ex-users, potential users, first-time users, and regular users of a product?

A) user status
B) usage rates
C) gender status
D) income status
E) loyalty status

Question 12

________ requires finding the major advantages people look for in a product class, the kinds of people who look for each positive aspect of a product, and the major brands that deliver it.

A) Gender segmentation
B) Psychographic segmentation
C) Benefit segmentation
D) Geographic segmentation
E) Age and life-cycle segmentation

Question 13

Gilron Holidays runs a premium membership club which caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts on select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach.

A) gender
B) income
C) occasion
D) benefit
E) geographic

Question 14

Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals.

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

Question 15

________ segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

A) Behavioral
B) Gender
C) Benefit
D) Occasion
E) Geographic

Question 16

________ segmentation refers to dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

A) Gender
B) Psychographic
C) Occasion
D) Geographic
E) Income

Question 17

Calypso Motors recently rolled out its hatchback, Proteus. Proteus combines the attractiveness of a luxury car with the excellent agility of a sports car. Calypso Motors is confident that Proteus will appeal to both sport scar enthusiasts as well as the luxury segment. Which of the following types of market segmentation is evident here?

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

Question 18

________ 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) Mass customization
B) Positioning
C) Segmentation
D) Differentiation
E) Targeting

Question 19

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

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

Question 20

A company selling child care products ran a television ad depicting women as being primarily responsible for child care. Many women viewers considered this regressive alleging that the ad failed to recognize the much more diversified role of women in today's world. This is an example of ________.

A) cause marketing
B) stereotyping
C) niche marketing
D) scapegoating
E) positioning

Question 21

An American cola-manufacturing company that primarily targets rebellious and adventurous people most likely uses ________ segmentation.

A) occasion segmentation
B) geographic segmentation
C) income segmentation
D) benefit segmentation
E) psychographic segmentation

Question 22

Double Drill Inc. segments its foreign markets by per capita income. This firm segments the international markets based on ________.

A) political factors
B) legal factors
C) geographic location
D) economic factors
E) cultural factors

Question 23

Teen Mania Inc., a company marketing adventure sports merchandise for teenagers, targets the world's teenagers, who have similar needs and buying behavior even though they are located in different countries. Which of the following market segmentation is evident here?

A) income segmentation
B) psychographic segmentation
C) gender segmentation
D) intermarket segmentation
E) occasions segmentation

Question 24

Consumers who show their allegiance to brands, stores, or companies help marketers to segment consumers by their ________.

A) user status
B) degree of loyalty
C) income
D) geographic location
E) benefit-seeking attitudes

Question 25

A market segment that is large or profitable enough to serve is ________.

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

Question 26

Orion Inc. markets luxury watches and chronographs. It targets the wealthy global elite segment, regardless of their geographic location. Orion most likely uses ________ segmentation.

A) income
B) age-group
C) occasion
D) benefit
E) cross-market

Question 27

In the context of behavioral segmentation, who among the following is a potential user?

A) Anita, who recently had a baby
B) Peter, who recently changed his job
C) Mary, who enrolled as a graduate student in a university last year
D) Gina, who opened a dental clinic in Orange County
E) Raj, who is planning a trip to Hawaii with friends

Question 28

Which of the following refers to a cultural factor in the context of segmenting international markets?

A) receptivity of foreign firms
B) economic development of the country
C) population income levels
D) stability of the government
E) values and attitudes

Question 29

In the context of behavioral segmentation, markets segmented by ________ can be categorized into light, medium, and heavy product users.

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

Question 30

Pacific Fisheries divides its customers into different regional units, such as Asia, Australia, and the Americas. This is an example of ________.

A) age and life-cycle segmentation
B) psychographic segmentation
C) geographic segmentation
D) occasion segmentation
E) benefit segmentation

Question 31

Papillon, a popular retailer of chic women's clothing, segments its market according to consumer lifestyles. Papillon most likely uses ________ for segmenting its market.

A) geographic segmentation
B) psychographic segmentation
C) benefit segmentation
D) age and life-cycle segmentation
E) occasion segmentation

Question 32

Which of the following is NOT a common variable used by both consumer and business marketers while segmenting markets?

A) operating characteristics
B) loyalty status
C) usage rate
D) geographic location
E) benefits sought

Question 33

A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage of the market. The study indicated that less than 7 percent of all shoppers buy nearly 71 percent of Estelle's products in the United States. This is an example of ________.

A) benefit segmentation
B) segmentation by loyalty status
C) segmentation by usage rate
D) psychographic segmentation
E) occasion segmentation

Question 34

Venus Inc., a company designing and marketing branded diamond jewelry, targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________.

A) intermarket segmentation
B) loyalty segmentation
C) life-cycle segmentation
D) income segmentation
E) psychographic segmentation

Question 35

________ assumes that nations close to one another will have many common traits and behaviors.

A) Geographic segmentation
B) Occasion segmentation
C) Psychographic segmentation
D) Benefit segmentation
E) Demographic segmentation

Question 36

Using ________, marketers form segments of consumers who have similar needs and buying behaviors even though they are located in different countries.

A) psychographic segmentation
B) demographic segmentation
C) occasion segmentation
D) benefit segmentation
E) intermarket segmentation

Question 37

Marketers often segment international markets according to the type and stability of government. In such instances, they segment markets based on ________.

A) geographic location
B) economic factors
C) cultural factors
D) political factors
E) socio-cultural factors

Question 38

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

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

Question 39

Which of the following is true about multivariable segmentation systems?

A) Marketers using multiple segmentation bases tend to ignore smaller markets.
B) Marketers often use multiple segmentation bases to control inflation.
C) Multiple segmentation rarely involves the use of demographic data.
D) Multiple segmentation is ineffective in large markets.
E) Multiple segmentation bases help identify smaller, better-defined target groups.

Question 40

Which of the following is true about behavioral segmentation on the basis of the loyalty variable?

A) Consumers tend to pay more for products that are targeted at their respective age-group or generation.
B) By looking at customers who are shifting away from its brand, a company can learn about its marketing weaknesses and take actions to correct them.
C) Highly loyal customers of a brand are less likely to engage in word-of-mouth publicity than those who are not.
D) Completely loyal customers of a brand are typically loyal to two or three brands of a given product.
E) Only consumers who seek premium or luxury services are subjected to behavioral segmentation based on the loyalty variable.

Question 41

A(n) ________ consists of a set of buyers who share common needs or characteristics that the company decides to serve.

A) marketing channel
B) citizen-action group
C) distribution channel
D) target market
E) customer franchise

Question 42

Which of the following is true about the concentrated marketing strategy?

A) Companies that rely on a few segments for all of their business will suffer if a segment turns sour.
B) Concentrated marketing is not profitable for most firms.
C) Niche marketing involves few risks for most firms.
D) Concentrated marketing involves going after a small share of a large market.
E) The Internet has limited the use and benefits of niche marketing.

Question 43

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

A) Mass marketing
B) Trigger-based marketing
C) Differentiated marketing
D) Concentrated marketing
E) Micromarketing

Question 44

Different soft drinks target different personalities. This is an example of ________ segmentation.

A) psychographic
B) demographic
C) occasion
D) life-cycle
E) benefits

Question 45

Which of the following is a drawback of local marketing?

A) Local marketing increases manufacturing costs by reducing the economies of scale.
B) Local marketing requires specialization that is difficult to identify.
C) Local marketing is not profitable for most small firms.
D) Local marketing cannot accommodate the needs of modern buyers who are technology savvy.
E) Local marketing almost always results in brand dilution.

Question 46

Which of the following is a disadvantage of using a differentiated marketing strategy?

A) generates far lower sales compared to an undifferentiated marketing strategy
B) customer loyalty is negatively impacted and difficult to obtain
C) the costs of doing business increase
D) quality control problems increase
E) product safety decreases

Question 47

Andrew Levitt runs a retail store in Norristown. Andrew's store stocks cold weather products as Norristown mostly has sub-zero temperatures. Which of the following is evident here?

A) local marketing
B) concentrated marketing
C) segmented marketing
D) mass marketing
E) direct marketing

Question 48

________ segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.

A) Complex
B) Measurable
C) Competitive
D) Differentiable
E) Homogeneous

Question 49

When a company customizes its merchandise store by store to meet shopper needs, it is practicing ________.

A) niche marketing
B) mass marketing
C) local marketing
D) segmented marketing
E) trigger-based marketing

Question 50

Which of the following is LEAST relevant when a firm evaluates different market segments?

A) segment size and growth
B) company resources
C) segment structural attractiveness
D) core competencies of competitors
E) company objectives

Question 51

Sanguine Services is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. Sanguine most likely uses which of the following marketing strategies?

A) individual marketing
B) one-to-one marketing
C) mass marketing
D) concentrated marketing
E) trigger-based marketing

Question 52

Bailey's Burgers promotes the Bailey's Jumbo Burger as a fun snack for teens and young adults. In this instance, Bailey's Burgers is practicing ________ segmentation.

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

Question 53

A public relations firm tailors its advertising and promotional services according to the needs and preferences of specific customers. This exemplifies ________.

A) trigger-based marketing
B) mass marketing
C) segmented marketing
D) individual marketing
E) concentrated marketing

Question 54

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) competitive
D) actionable
E) differentiable

Question 55

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

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

Question 56

A segment is less attractive if ________.

A) it is difficult for new entrants to enter
B) it is substantial
C) it is actionable
D) it already contains many strong and aggressive competitors
E) it contains weak suppliers

Question 57

________ refers to a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

A) individual marketing
B) local marketing
C) niche marketing
D) undifferentiated marketing
E) segmented marketing

Question 58

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each is known as ________.

A) mass marketing
B) differentiated marketing
C) concentrated marketing
D) individual marketing
E) cross-marketing

Question 59

________ tailors brands and promotions to the needs and wants of regional customer groups, such as cities, neighborhoods, and even specific stores.

A) Undifferentiated marketing
B) Differentiated marketing
C) Niche marketing
D) Local marketing
E) Individual marketing

Question 60

With a(n) ________ marketing strategy, a firm goes after a large share of one or a few smaller niches.

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

Question 61

________ marketing is more suited for uniform products, such as grapefruit or steel.

A) Niche
B) Undifferentiated
C) One-to-one
D) Trigger-based
E) Local

Question 62

Harvey's Bookstore is a popular online bookstore that has differentiated itself through smooth-functioning delivery networks. This is an example of ________.

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

Question 63

________ is more suited for products that vary in design.

A) Mass marketing
B) Local marketing
C) Direct marketing
D) Differentiated marketing
E) Individual marketing

Question 64

The full mix of benefits on which a brand is differentiated and positioned is known as the brand's ________.

A) value proposition
B) service life
C) value stream
D) supply chain
E) demand chain

Question 65

________ is the process by which firms interact one-to-one with masses of customers to design products and services tailor-made to individual needs.

A) Product diversification
B) Undifferentiated marketing
C) Mass customization
D) Differentiated marketing
E) Trigger-based marketing

Question 66

A ________ refers to the way a product is defined by consumers on important attributes-the place the product occupies in consumers' minds relative to competing products.

A) core competency
B) value stream
C) value proposition
D) product position
E) product specification

Question 67

Shine Enterprises mass produces an all-purpose floor cleaner which is aimed at the whole market. This firm uses a(n) ________ marketing strategy.

A) segmented
B) undifferentiated
C) individual
D) niche
E) one-to-one

Question 68

________ refers to how a company will create differentiated value for targeted segments and what positions it wants to occupy in those segments.

A) Cluster analysis
B) Closed-loop marketing
C) Product positioning
D) Value proposition
E) Value stream mapping

Question 69

Stores such as Walmart, Best Buy, PetSmart, David's Bridal, and DSW Shoes use ________ positioning.

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

Question 70

________ shows consumer perceptions of a company's brands versus competing products on important buying dimensions.

A) Gap analysis
B) Predictive buying
C) Cluster analysis
D) Perceptual positioning maps
E) Cost-benefit analysis

Question 71

________ positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs.

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

Question 72

Even when competing offers look the same, buyers may perceive a difference based on ________ differentiation.

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

Question 73

A catalog retailer in the United States has identified African American professionals between the ages of 35 and 45 as a group of potential customers for its products. The retailer plans to direct its marketing efforts toward this group of consumers. Which of the following market segmentation variables was most likely used by the catalog retailer?

A) demographic
B) psychographic
C) user status
D) loyalty status
E) usage rate

Question 74

GamaPix makes point-and-shoot cameras and handycams for amateur photographers and hobbyists. It also has a separate line of cameras dedicated to professional photographers. Additionally, it designs separate offers for each segment. Which of the following marketing strategies does GamaPix most likely use in this instance?

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

Question 75

To the extent that a company can differentiate and position itself as providing superior customer value, it gains ________.

A) competitive advantage
B) complementary assets
C) service life
D) core competencies
E) contingent liability

Question 76

Which of the following marketing strategies is most suitable for smaller firms with limited resources?

A) mass marketing
B) undifferentiated marketing
C) niche marketing
D) differentiated marketing
E) one-to-one marketing

Question 77

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

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

Question 78

When order requests come in, the designers of Titus Furniture often go to a client's location to note their requirements, budget, and expected date of delivery. In this way, Titus Furnitures is successful in tailor-making products for its customers. This is an example of ________.

A) market diversification
B) undifferentiated marketing
C) mass customization
D) differentiated marketing
E) trigger-based marketing

Question 79

Rex Steelworks makes steel sheets which the firm markets and sells to companies all over the world. Which of the following marketing strategies is most suitable for Rex Steelworks?

A) one-to-one marketing
B) undifferentiated marketing
C) individual marketing
D) local marketing
E) trigger-based marketing

Question 80

Jean Malone, a market researcher, recently found that most people in Bradburg County purchase automobiles with predominantly functional designs and prefer darker colors. Which of the following marketing strategies should Jean most likely recommend to an automobile dealer interested in opening a dealership in Bradburg County?

A) one-to-one marketing
B) undifferentiated marketing
C) segmented marketing
D) individual marketing
E) direct marketing