Question 1

Increasing share of customer means getting more customers.

Accepted Answer

A) True 
 B)False

Question 2

_____ segmentation is based on personality,motives,and lifestyles.

Accepted Answer

A) Psychographic 
B) Demographic 
C) Benefit 
D) Family life cycle 
E) Character

Question 3

The Coca-Cola Company uses an undifferentiated targeting strategy for its entire line of products.

Accepted Answer

A) True 
 B)False

Question 4

Mercedes-Benz
Daimler AG,the maker of Mercedes-Benz automobiles,is planning to launch a new line of downsized luxury vehicles in the United States by 2012.Daimler has experienced a recent drop in global sales attributed to its product mix that focuses on larger luxury automobiles.With increasing fuel prices and stricter U.S.fuel-economy standards coming down the pipeline,Daimler doesn't want to be left behind.Daimler is behind its competition,though.Its German rivals,Audi and BMW,have been relatively successful in the United States.BMW's Mini Cooper,demanding as much as $34,000,has already driven away with some of Daimler's potential sales.While Daimler already offers the Smart car in the United States,the new offerings will not be going after the same consumers.
-Refer to Mercedes-Benz.Mercedes-Benz's baby boomers are a useful segment because they meet certain criteria.Which of the following do the baby boomers meet?

Accepted Answer

A) Substantiality 
B) Identifiability and measurability 
C) Accessibility 
D) Responsiveness 
E) All of these

Question 5

Define multisegment targeting and discuss the advantages and disadvantages of this targeting strategy.

Accepted Answer

The answer of Define multisegment targeting and discuss the advantages...

Question 6

ThinkGeek is an online retailer that caters to computer enthusiasts and other "geeky" social groups.Their merchandise includes clothing,electronic and scientific gadgets,unusual computer peripherals,office toys,pet toys,child toys,and caffeinated drinks and candy.ThinkGeek runs a points-for-reward system called Geek Points,under which customers can earn rewards for buying more products.This is an example of segmentation by:

Accepted Answer

A) demographic. 
B) benefit. 
C) aggregate. 
D) economics. 
E) usage rate.

Question 7

All of the following are advantages of using a concentrated targeting strategy EXCEPT:

Accepted Answer

A) concentration of resources 
B) can better meet the needs of a narrowly defined segment 
C) allows some small firms to better compete with larger firms 
D) strong positioning 
E) cannibalization

Question 8

What does the 80/20 principle propose?

Accepted Answer

A) Roughly 80 percent of the profit comes from 20 percent of the sales. 
B) Roughly 80 percent of a firm's customers are repeat business. 
C) Roughly 50 percent of a firm's customers purchase 80 percent of the sales volume of the product. 
D) Roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product. 
E) Sales are equally divided among heavy,medium,and light users,but they all need slightly different products.

Question 9

The Ritz-Carlton hotel chain is renowned for its service and individual treatment of its customers.All service staff and employees have note pads and are taught to record every little piece of information they learn about a customer.If a business traveler ordered soft pillows,only wanted martinis in his mini bar,and needed access to a fax machine,he would find all of these amenities in his room when he arrived.The Ritz-Carlton is basing its one-to-one marketing on which of the following trends?

Accepted Answer

A) The growing number of customers who do not have time to spend shopping 
B) The fact that consumers do not want to be treated like the masses 
C) Data mining capabilities 
D) The use of reward systems to increase brand loyalty 
E) The growing market for luxury products

Question 10

The place a product,brand,or group of products occupies in consumers' minds relative to competing offerings is referred to as a product's:

Accepted Answer

A) status 
B) equity 
C) frame 
D) role 
E) position

Question 11

A segmentation plan must produce segments that are accessible-that is,the firm must be able to reach members of targeted segments with customized marketing mixes.

Accepted Answer

A) True 
 B)False

Question 12

Zatarains offers packaged spice mixes for jambalaya,gumbo,and red beans and rice.Consumers can buy the product in the store,so Zatarains sells individual household-size packages to resellers.It also sells institutional-size packages to military bases,schools,restaurants,and other large organizations.The marketers of Zatarains would most likely segment the business market according to:

Accepted Answer

A) company characteristics. 
B) the buying process. 
C) financial terms. 
D) customer relationship objectives. 
E) length of distribution channel.

Question 13

Firms can be categorized by the type of purchasing strategy used._____ consider numerous,even unfamiliar,suppliers and solicit and analyze options.

Accepted Answer

A) Satisficers 
B) Strivers 
C) Optimizers 
D) Actualizers 
E) Innovators

Question 14

Marketers are rediscovering that the "one-size-fits-all" approach to marketing is still relevant.

Accepted Answer

A) True 
 B)False

Question 15

A market segmentation study done by the University of Thessaly in Greece classified recreational skiers in terms of their gender,age,and income levels.The study used psychographic segmentation variables.

Accepted Answer

A) True 
 B)False

Question 16

Lands' End offers customers the option of having jeans and other types of pants made to fit them according to their waist,hip,and leg length measurements.This is an example of:

Accepted Answer

A) an application of the 80/20 rule 
B) firewall marketing 
C) one-to-one marketing 
D) transformational marketing 
E) data mining

Question 17

The hidden-camera videos that were placed strategically on Web sites like YouTube to promote Coke Zero were an example of marketing according to

Accepted Answer

A) benefit segmentation. 
B) demographics. 
C) geodemographic segmentation. 
D) usage-rate segmentation. 
E) psychographic segmentation.

Question 18

Piper Corporation makes aircrafts.It produces several different planes for three categories of customer: Professional,Personal,and Trainer.What type of targeting strategy is Piper using?

Accepted Answer

A) Demand positioning 
B) Concentrated 
C) Undifferentiated 
D) Multisegment 
E) Market differentiation

Question 19

List,in correct order,the steps in segmenting a market.

Accepted Answer

The answer of List,in correct order,the steps in segmenting a...

Question 20

Thompson Pools installs and maintains swimming pools.They group their customers according to their needs: new installs,regular maintenance,and frequent product consumers.When do they need a new segmentation analysis?

Accepted Answer

A) Once every 20 years 
B) They should do them regularly because of the rapidly changing nature of most markets. 
C) They don't need any because consumer markets don't rapidly change and develop like business goods markets. 
D) Every year,using new bases for variety 
E) Only when the market changes

Exam 8: Segmenting and Targeting Markets

Increasing share of customer means getting more customers.

_____ segmentation is based on personality,motives,and lifestyles.

The Coca-Cola Company uses an undifferentiated targeting strategy for its entire line of products.

Define multisegment targeting and discuss the advantages and disadvantages of this targeting strategy.

All of the following are advantages of using a concentrated targeting strategy EXCEPT:

What does the 80/20 principle propose?

The place a product,brand,or group of products occupies in consumers' minds relative to competing offerings is referred to as a product's:

A segmentation plan must produce segments that are accessible-that is,the firm must be able to reach members of targeted segments with customized marketing mixes.

Firms can be categorized by the type of purchasing strategy used._____ consider numerous,even unfamiliar,suppliers and solicit and analyze options.

Marketers are rediscovering that the "one-size-fits-all" approach to marketing is still relevant.

A market segmentation study done by the University of Thessaly in Greece classified recreational skiers in terms of their gender,age,and income levels.The study used psychographic segmentation variables.

Lands' End offers customers the option of having jeans and other types of pants made to fit them according to their waist,hip,and leg length measurements.This is an example of:

The hidden-camera videos that were placed strategically on Web sites like YouTube to promote Coke Zero were an example of marketing according to

Piper Corporation makes aircrafts.It produces several different planes for three categories of customer: Professional,Personal,and Trainer.What type of targeting strategy is Piper using?

List,in correct order,the steps in segmenting a market.

Thompson Pools installs and maintains swimming pools.They group their customers according to their needs: new installs,regular maintenance,and frequent product consumers.When do they need a new segmentation analysis?