Question 1

Geo-dernographic segmentation is sometimes called zip-code marketing.

Accepted Answer

A) True 
 B)False  True

Question 2

Market segmentation allows a company to efficiently focus resources and efforts by avoiding those parts of the market it cannot satisfy well, thereby avoiding unwieldy competition.

Accepted Answer

A) True 
 B)False  True

Question 3

Imagine you work for Jonesville, Inc., a mid-sized company specializing in the manufacturing and marketing of high­ end, high-performance mountain bikes.Jonesville, Inc.recently hired an outside market research firm to assess its positioning strategy and make recommendations about future positioning strategies.The research firm submitted a perceptual map.The map's x-axis (abscissa) reflects higher quality when moving to the right, and they-axis (ordinate) reflects higher price when moving up and positioned Jonesville in the upper right-hand quadrant.The research firm recommends that Jonesville position another line of high-end mountain bikes in the lower right hand quadrant where there are no competitors and there appears to be a gap in the market.
a.Your boss doesn't really understand the map.Explain to your boss what the map means.
b.Evaluate the research firm's logic for the new positioning location (i.e., identify the logic's flaw).

Accepted Answer

a.The map shows how consumer's position a given brand, in the consumers' mind relative to the competition, along known brand attributes, in this case quality and price, and whether or not we are meeting our goals in terms of this positioning strategy.The map also shows market gaps.
b.Although the research firm accurately identified a gap in the market, the flaw in the logic is that the gap is created by the combination of attributes of high quality/low price.This recommendation is not realistic since it calls for high quality at a low price.Odds are we could not make a profit with this combination.The recommendation should be rejected.

Question 4

is segmentation based on consumer preference for specific product attributes or benefits, usage occasion, user status, rate of product usage, or loyalty.

Accepted Answer

A)  Demographic-based segmentation
B)  Ethnographic-based segmentation
C)  Psychographic-based segmentation
D)  Geo-demographic based segmentation
E)  None of the above is correct.

Question 5

Targeting is the process of communicating with our market segments through the use of marketing mix variables in such a way as to help consumers differentiate our product from our competition.

Accepted Answer

A) True 
 B)False

Question 6

Market size is a key factor that is overlooked when a manager commits the majority fallacy.

Accepted Answer

A) True 
 B)False

Question 7

What are the key assumptions that underlie market segmentation?

Accepted Answer

The answer of What are the key assumptions that underlie...

Question 8

Procter and Gamble offers a $1.00 coupon when consumers purchase three bottles ofPantene brand shampoo.This strategy represents segments based on geo-demographics.

Accepted Answer

A) True 
 B)False

Question 9

The slogan, "Subway is fresh!" is an example of positioning by core benefit.

Accepted Answer

A) True 
 B)False

Question 10

What is psychographies and how are markets segmented using psychographies?

Accepted Answer

The answer of What is psychographies and how are markets...

Question 11

The slogan, "Close-Up Toothpaste- Kissably Fresh Breath!" is an example of positioning by product user.

Accepted Answer

A) True 
 B)False

Question 12

Market aggregation is the opposite of market segmentation.

Accepted Answer

A) True 
 B)False

Question 13

The PRIZM segmentation model discussed in your readings is based in what market segmentation strategy?

Accepted Answer

A)  Demographic segmentation
B)  Geo-dernographic segmentation
C)  Psychographic segmentation
D)  Behavioral-based segmentation
E)  Price segmentation

Question 14

The first brand to enter a new market often enjoys a long-term consumer preference advantage over follower brands.This phenomenon is known as what?

Accepted Answer

A)  Diversification effect
B)  Repositioning
C)  Majority fallacy
D)  Cannibalization
E)  Pioneering advantage

Question 15

Premium priciug, which is sometimes called prestige pricing, is priciug a brand at the top end of a product category's pnce range.

Accepted Answer

A) True 
 B)False

Question 16

occurs when an organization chooses to aggregate the market and offer the same product or service and marketing mix to all consumers.

Accepted Answer

A)  Niche marketing
B)  Mass marketing
C)  Market consolidation
D)  Micromarketing
E)  Mass customization

Question 17

Which of the following statements demonstrates the formation of a segment based on benefits sought?

Accepted Answer

A)  Campbell's Soup makes a spicier chili for its market in Texas than it does in Maine.
B)  GE built a downsized microwave oven to hang under kitchen cabinets.
C)  Kings Island Park offers a special discount to senior citizens.
D)  Procter and Gamble offers a $1.00 coupon when consumers purchase three bottles of Pert Shampoo.
E)  Cengage Publishing Company publishes a magazine called "Underground" specifically for audiences who enjoy punk and alternative forms of rock music.

Question 18

In the price segmentation model presented in your readings, the "convenience segment" is less concerned with price and wants to have a high level of value and/or product differentiation.

Accepted Answer

A) True 
 B)False

Question 19

According to the price segmentation model in your readings, which segment represents a combination oflow "perceived pain" and high "perceived value" and is a highly desirable segment to marketers?

Accepted Answer

A)  The price segment
B)  The loyal segment
C)  The value segment
D)  The convenience segment
E)  The brand segment

Question 20

Consumers tend to use price as a gauge of quality.This phenomenon is called the price-quality heuristic.

Accepted Answer

A) True 
 B)False

Exam 2: Consumer Focused Strategy: Segmentation and Positioning

Geo-dernographic segmentation is sometimes called zip-code marketing.

Market segmentation allows a company to efficiently focus resources and efforts by avoiding those parts of the market it cannot satisfy well, thereby avoiding unwieldy competition.

is segmentation based on consumer preference for specific product attributes or benefits, usage occasion, user status, rate of product usage, or loyalty.

Targeting is the process of communicating with our market segments through the use of marketing mix variables in such a way as to help consumers differentiate our product from our competition.

Market size is a key factor that is overlooked when a manager commits the majority fallacy.

What are the key assumptions that underlie market segmentation?

Procter and Gamble offers a $1.00 coupon when consumers purchase three bottles ofPantene brand shampoo.This strategy represents segments based on geo-demographics.

The slogan, "Subway is fresh!" is an example of positioning by core benefit.

What is psychographies and how are markets segmented using psychographies?

The slogan, "Close-Up Toothpaste- Kissably Fresh Breath!" is an example of positioning by product user.

Market aggregation is the opposite of market segmentation.

The PRIZM segmentation model discussed in your readings is based in what market segmentation strategy?

The first brand to enter a new market often enjoys a long-term consumer preference advantage over follower brands.This phenomenon is known as what?

Premium priciug, which is sometimes called prestige pricing, is priciug a brand at the top end of a product category's pnce range.

occurs when an organization chooses to aggregate the market and offer the same product or service and marketing mix to all consumers.

Which of the following statements demonstrates the formation of a segment based on benefits sought?

In the price segmentation model presented in your readings, the "convenience segment" is less concerned with price and wants to have a high level of value and/or product differentiation.

According to the price segmentation model in your readings, which segment represents a combination oflow "perceived pain" and high "perceived value" and is a highly desirable segment to marketers?

Consumers tend to use price as a gauge of quality.This phenomenon is called the price-quality heuristic.