Question 1

One reason demographic variables are the most popular bases for segmenting customer groups is because they ________.

Accepted Answer

A)  create smaller segments 
B)  create more easily accessible segments 
C)  do not involve stereotypes 
D)  are easier to measure than other variables 
E)  involve fewer attributes to consider

Question 2

Even if a segment has the right size and growth and is structurally attractive, a company must consider its own objectives and resources before targeting that segment.

Accepted Answer

A) True 
 B)False

Question 3

Pediacertain Pet Supplies, a pet-food company, divides the pet market according to the pet owners' gender, occupation, income, and family life cycle. In this case, which of the following variables has the company used for market segmentation?

Accepted Answer

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

Question 4

Shampoo marketers segment buyers as light, medium, or heavy product users. This is an example of ________ segmentation.

Accepted Answer

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

Question 5

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

Accepted Answer

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

Question 6

Explain the concept of positioning for competitive advantage.

Accepted Answer

The answer of Explain the concept of positioning for competitive...

Question 7

Compared with undifferentiated marketing, differentiated marketing is more likely to lead to ________.

Accepted Answer

A)  reduced sales in each market segment 
B)  weaker product position in each market segment 
C)  higher costs of doing business 
D)  redundancy in product design across market segments 
E)  smaller market share in the industry

Question 8

Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged men, and the other line targets younger, up-and-coming professionals. Harry's most likely segments the consumer market based on ________ variables.

Accepted Answer

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

Question 9

Gold Class Electricals, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on ________.

Accepted Answer

A)  demographic variables 
B)  geographic regions 
C)  multiple segmentation bases 
D)  behavioral variables 
E)  psychographic segmentation bases

Question 10

Which of the following is true about local marketing?

Accepted Answer

A)  It does not cater to individual stores. 
B)  It does not support evolving technologies. 
C)  It increases manufacturing costs. 
D)  It increases economies of scale. 
E)  It reduces logistical issues.

Question 11

Brand differences are worth promoting if they satisfy certain criteria. What are these criteria?

Accepted Answer

The answer of Brand differences are worth promoting if they...

Question 12

A brand difference is said to be preemptive if ________.

Accepted Answer

A)  competitors cannot easily copy the difference 
B)  buyers can afford to pay for the difference 
C)  the difference can be introduced profitably 
D)  the difference is communicable 
E)  the difference is beneficial to customers

Question 13

Bass Pro Shops recognizes that outdoors enthusiasts are a diverse group. Likely segments include hunters, campers, and boaters. What is this segmentation method called?

Accepted Answer

A)  user status 
B)  usage rate 
C)  benefit 
D)  behavioral 
E)  psychographic

Question 14

Marketers typically limit their market segmentation analysis to a single variable in order to simplify the process.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is an approach where firms target a whole market based on common consumer needs?

Accepted Answer

A)  demographic segmentation 
B)  undifferentiated marketing 
C)  micromarketing 
D)  concentrated marketing 
E)  geographic segmentation

Question 16

Explain with examples how marketers segment markets based on occasions, benefits sought, and user status.

Accepted Answer

The answer of Explain with examples how marketers segment markets...

Question 17

Which of the following includes the target segment of a product, the category to which the product belongs, and the product's point of difference from other members in the category?

Accepted Answer

A)  mission statement 
B)  vision statement 
C)  profit statement 
D)  positioning statement 
E)  inventory statement

Question 18

A market segment is less attractive when ________.

Accepted Answer

A)  there are few aggressive competitors in the segment 
B)  it is difficult for new entrants to enter the segment 
C)  it contains powerful suppliers who can control prices 
D)  substitute products are unavailable in the segment 
E)  buyers in the market segment have weak bargaining powers

Question 19

Cian, an automobile manufacturer, offers a new car model with features comparable to that of another popular brand. However, the Cian model is priced lower than its competitor and includes a longer warranty. Cian is most likely following a more-for-the-same strategy.

Accepted Answer

A) True 
 B)False

Question 20

Although not recommended, some marketers decide to ignore market segmentation and target the whole market with one offer. This is known as ________ marketing.

Accepted Answer

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

Exam 6: Customer-Driven Marketing Strategy: Creating Value for Target Customers

One reason demographic variables are the most popular bases for segmenting customer groups is because they ________.

Even if a segment has the right size and growth and is structurally attractive, a company must consider its own objectives and resources before targeting that segment.

Pediacertain Pet Supplies, a pet-food company, divides the pet market according to the pet owners' gender, occupation, income, and family life cycle. In this case, which of the following variables has the company used for market segmentation?

Shampoo marketers segment buyers as light, medium, or heavy product users. This is an example of ________ segmentation.

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

Explain the concept of positioning for competitive advantage.

Compared with undifferentiated marketing, differentiated marketing is more likely to lead to ________.

Gold Class Electricals, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on ________.

Which of the following is true about local marketing?

Brand differences are worth promoting if they satisfy certain criteria. What are these criteria?

A brand difference is said to be preemptive if ________.

Bass Pro Shops recognizes that outdoors enthusiasts are a diverse group. Likely segments include hunters, campers, and boaters. What is this segmentation method called?

Marketers typically limit their market segmentation analysis to a single variable in order to simplify the process.

Which of the following is an approach where firms target a whole market based on common consumer needs?

Explain with examples how marketers segment markets based on occasions, benefits sought, and user status.

Which of the following includes the target segment of a product, the category to which the product belongs, and the product's point of difference from other members in the category?

A market segment is less attractive when ________.

Cian, an automobile manufacturer, offers a new car model with features comparable to that of another popular brand. However, the Cian model is priced lower than its competitor and includes a longer warranty. Cian is most likely following a more-for-the-same strategy.

Although not recommended, some marketers decide to ignore market segmentation and target the whole market with one offer. This is known as ________ marketing.