Question 1

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

Accepted Answer

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

Question 2

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?

Accepted Answer

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

Question 3

________ 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.

Accepted Answer

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

Question 4

Which of the following is a drawback of local marketing?

Accepted Answer

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 5

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

Accepted Answer

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

Question 6

Refer to the scenario below to answer the following question(s).
Ruben Delgado was making wooden pens and pencils, which had unique engravings, as a hobby until Simon Yoder recognized Ruben's talent. Simon immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the wooden pencils were a hit with all students! Ruben Delgado had never thought of marketing his talent, but Simon's enthusiasm and the recent sales were enough to change his mind.
With limited resources, Ruben contacted three additional specialty shops within 100 miles that were situated near schools. He explained his manufacturing processes and engraving options to each. All three shop owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Ruben was ecstatic! "I figured business would slow down after that," Ruben stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provides products for school fundraisers in a seven-state area. Ruben was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Ruben Delgado accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project," Ruben added. He decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Ruben continued nurturing his four previously established accounts without targeting any additional customers.
"At this point, I had set up an assembly line in a rented building," Ruben explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Ruben paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes."
-Demographic segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.

Accepted Answer

A) True 
 B)False

Question 7

Apex describes its clothing line as, "Elegance and attitude, now as one. For the daily office-goer, who takes pride in what he or she wears everyday, Apex makes sure you get noticed." This exemplifies a ________.

Accepted Answer

A)  statement of purpose 
B)  vision statement 
C)  positioning statement 
D)  general need description 
E)  product specification

Question 8

Refer to the scenario below to answer the following question(s).
Ruben Delgado was making wooden pens and pencils, which had unique engravings, as a hobby until Simon Yoder recognized Ruben's talent. Simon immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the wooden pencils were a hit with all students! Ruben Delgado had never thought of marketing his talent, but Simon's enthusiasm and the recent sales were enough to change his mind.
With limited resources, Ruben contacted three additional specialty shops within 100 miles that were situated near schools. He explained his manufacturing processes and engraving options to each. All three shop owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Ruben was ecstatic! "I figured business would slow down after that," Ruben stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provides products for school fundraisers in a seven-state area. Ruben was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Ruben Delgado accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project," Ruben added. He decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Ruben continued nurturing his four previously established accounts without targeting any additional customers.
"At this point, I had set up an assembly line in a rented building," Ruben explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Ruben paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes."
-Psychographic segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.

Accepted Answer

A) True 
 B)False

Question 9

Refer to the scenario below to answer the following question(s).
Ruben Delgado was making wooden pens and pencils, which had unique engravings, as a hobby until Simon Yoder recognized Ruben's talent. Simon immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the wooden pencils were a hit with all students! Ruben Delgado had never thought of marketing his talent, but Simon's enthusiasm and the recent sales were enough to change his mind.
With limited resources, Ruben contacted three additional specialty shops within 100 miles that were situated near schools. He explained his manufacturing processes and engraving options to each. All three shop owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Ruben was ecstatic! "I figured business would slow down after that," Ruben stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provides products for school fundraisers in a seven-state area. Ruben was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Ruben Delgado accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project," Ruben added. He decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Ruben continued nurturing his four previously established accounts without targeting any additional customers.
"At this point, I had set up an assembly line in a rented building," Ruben explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Ruben paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes."
-When segmenting by usage rate, markets can be segmented into nonusers, ex-users, potential users, first-time users, and regular users of a product.

Accepted Answer

A) True 
 B)False

Question 10

When an effective program can be designed for attracting and serving a particular segment, the segment is best described as ________.

Accepted Answer

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

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?

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

What are the major structural factors affecting long-run segment attractiveness?

Accepted Answer

The answer of What are the major structural factors affecting...

Question 14

Refer to the scenario below to answer the following question(s).
Ruben Delgado was making wooden pens and pencils, which had unique engravings, as a hobby until Simon Yoder recognized Ruben's talent. Simon immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the wooden pencils were a hit with all students! Ruben Delgado had never thought of marketing his talent, but Simon's enthusiasm and the recent sales were enough to change his mind.
With limited resources, Ruben contacted three additional specialty shops within 100 miles that were situated near schools. He explained his manufacturing processes and engraving options to each. All three shop owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Ruben was ecstatic! "I figured business would slow down after that," Ruben stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provides products for school fundraisers in a seven-state area. Ruben was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Ruben Delgado accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project," Ruben added. He decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Ruben continued nurturing his four previously established accounts without targeting any additional customers.
"At this point, I had set up an assembly line in a rented building," Ruben explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Ruben paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes."
-Geographic segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

Accepted Answer

A) True 
 B)False

Question 15

"To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) ________.

Accepted Answer

A)  positioning statement 
B)  statement of purpose 
C)  order-routine specification 
D)  vision statement 
E)  product specification

Question 16

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

Accepted Answer

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 17

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

Accepted Answer

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

Question 18

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

Accepted Answer

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

Question 19

Less-for-much-less positioning involves meeting consumers' lower performance or quality requirements at a much lower price.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

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

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

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

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?

________ 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.

Which of the following is a drawback of local marketing?

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

Apex describes its clothing line as, "Elegance and attitude, now as one. For the daily office-goer, who takes pride in what he or she wears everyday, Apex makes sure you get noticed." This exemplifies a ________.

When an effective program can be designed for attracting and serving a particular segment, the segment is best described as ________.

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?

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

What are the major structural factors affecting long-run segment attractiveness?

"To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) ________.

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

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

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

Less-for-much-less positioning involves meeting consumers' lower performance or quality requirements at a much lower price.

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