Question 1

Airlines were among the first retailers to embrace loyalty segmentation when they created

Accepted Answer

A)  business-class seating. 
B)  30-day advance pricing. 
C)  fuel surcharges. 
D)  in-flight movies. 
E)  frequent flyer programs.

Question 2

Fiona wants to sell a local advertising calendar. There are 1,000 households in her community, and she estimates that 30 percent will buy a calendar. The printing company will charge a $100 setup fee, and calendars will cost $4.00 each to print. What price will she need to charge to cover all costs and make a $500 profit?

Accepted Answer

A)  $6.00 
B)  $7.00 
C)  $8.00 
D)  $9.00 
E)  $10.00

Question 3

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate whether each segment is attractive relative to all of the following EXCEPT

Accepted Answer

A)  substantial. 
B)  responsive. 
C)  profitable. 
D)  reachable. 
E)  realistic.

Question 4

NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of their race fans were female. What type of segmentation was used based on the survey results?

Accepted Answer

The answer of NASCAR redirected its marketing efforts when a...

Question 5

How have airline companies implemented loyalty segmentation?

Accepted Answer

The answer of How have airline companies implemented loyalty segmentation?...

Question 6

PRIZM and Tapestry divide and sort small geographic areas into categories using 60 or more demographic and lifestyle characteristics. These market research tools are examples of __________ segmentation.

Accepted Answer

A)  geodemographic 
B)  benefit 
C)  psychographic 
D)  loyalty 
E)  geographic

Question 7

For which types of products should marketers consider using an undifferentiated targeting strategy?

Accepted Answer

The answer of For which types of products should marketers...

Question 8

Godiva Chocolates produces specially decorated boxes of candies for Valentine's Day, Easter, and Christmas. This is an example of ________ segmentation.

Accepted Answer

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

Question 9

Golden Years Vitamin Corporation targets consumers living in Florida who are over age 65. Golden Years is using __________ segmentation.

Accepted Answer

A)  benefit 
B)  self-actualization 
C)  psychographic 
D)  loyalty 
E)  geodemographic

Question 10

Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the firm has ever used. She has defined the mission and objectives, and she just finished a situation analysis for the firm. The next step is to

Accepted Answer

A)  develop an advertising plan to promote the upcoming sales. 
B)  find marketing interns or hire new staff to help with implementation. 
C)  create pro forma financial statements to complete the package. 
D)  identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis. 
E)  use the Internet, catalogs, and vendor information to draw up a list of new products.

Question 11

Firms use a differentiated targeting strategy because

Accepted Answer

A)  it is easier than mass marketing. 
B)  it helps to obtain a bigger share of the market. 
C)  it is better than focusing on individual or small groups of potential customers. 
D)  most market segments are too small to be profitable. 
E)  banks are more willing to extend credit to companies with this strategic approach.

Question 12

Alex has found that both commercial and residential real estate buyers respond positively to his marketing communication message. Alex has identified __________ that respond similarly to his marketing efforts.

Accepted Answer

A)  mass customization consumers 
B)  geographic segments 
C)  market segments 
D)  self-concept customers 
E)  geodemographic segments

Question 13

Identify how a company that manufactures salt can use a differentiated targeting strategy.

Accepted Answer

The answer of Identify how a company that manufactures salt...

Question 14

Jim wants to position his firm against his competitors. In doing so he should

Accepted Answer

A)  never select a competitor in the same neighborhood. 
B)  avoid making the competitor's product look undesirable. 
C)  avoid looking too much like the competitor so that he'd confuse the target segment. 
D)  avoid discussing the strengths of his product so that competitors won't be aware of his product quality. 
E)  avoid discussing the weaknesses of his competitors so they won't retaliate.

Question 15

The Value and Lifestyle Survey (VALS) conducted by Strategic Business Insights (SBI) is a widely used tool for geographic segmentation.

Accepted Answer

A) True 
 B)False

Question 16

A company that sells only multigrain, low-calorie bread should use an undifferentiated targeting strategy.

Accepted Answer

A) True 
 B)False

Question 17

Geodemographic segmentation can be particularly useful for __________, because customers typically patronize stores close to their neighborhood.

Accepted Answer

A)  Internet marketers 
B)  wholesalers 
C)  retailers 
D)  consumer goods manufacturers 
E)  cable TV networks

Question 18

Regina wants to position her financial services company. Regina can position her services according to all of the following EXCEPT

Accepted Answer

A)  the value proposition. 
B)  product attributes. 
C)  symbols. 
D)  competitive comparisons. 
E)  profitability.

Question 19

Segment profitability asks marketers to consider segment size, segment adoption percentage, purchase behavior, profit margin percentage, and fixed costs. Select three of these five elements and explain where marketers will find solid quantifiable information to make the calculations.

Accepted Answer

The answer of Segment profitability asks marketers to consider segment...

Question 20

Ronaldo is developing an Internet auction-based business. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Ronaldo now has to choose which target market to focus his efforts on. What factors should influence his decision?

Accepted Answer

The answer of Ronaldo is developing an Internet auction-based business....

Exam 9: Segmentation, Targeting, and Positioning