Question 1

Australia-based Renewable Energy Ltd.sells a $10 million device that converts manure into energy.One of these devices is capable of generating energy equal to $2 million of natural gas per year.The company believes its target market consists of businesses similar to its first customer,a fertilizer manufacturer that was located in a rural area.If the firm expands to the United States,it most likely will use which of the following strategies to segment its market?

Accepted Answer

A)  behavioral and geographic 
B)  number of employees and behavioral 
C)  purchase location and purchase type 
D)  NAICS code and geographic 
E)  behavioral and NAICS code

Question 2

The ultimate criterion for an organization's marketing success is that __________ as a result of increased synergies.

Accepted Answer

A)  costs decrease 
B)  market share increases 
C)  product deficiencies decrease 
D)  customers should be better off 
E)  new products flourish

Question 3

Product features and usage rate are both variables used to employ __________ segmentation.

Accepted Answer

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

Question 4

Two key types of synergies are

Accepted Answer

A)  supplier and distributor synergies. 
B)  marketing and product synergies. 
C)  industry-dominated and consumer-dominated. 
D)  product and production synergies. 
E)  consumer and market synergies.

Question 5

Zappos' original target market customers consisted of people who wanted all of the following except which?

Accepted Answer

A)  to receive quick delivery of their merchandise 
B)  to buy sustainable shoes, accessories, and clothing 
C)  to shop online in the convenience of their own homes 
D)  to allow for free returns of goods if dissatisfied 
E)  to have a wide selection of shoes

Question 6

Usage rate refers to

Accepted Answer

A)  the percentage of total possible users divided by the total number of consumers who actually use a product or service. 
B)  the number of times a customer uses or recommends a product or service annually. 
C)  quantity consumed or patronage (store visits) during a specific period. 
D)  the maximum number of times a customer has used a product or service historically. 
E)  the profits a firm earns from customers who consume a particular product or service.

Question 7

Explain what a market-product grid is and how it is used.

Accepted Answer

The answer of Explain what a market-product grid is and...

Question 8

Segmentation based on some subjective mental or emotional attributes,aspirations,or needs of prospective customers is referred to as

Accepted Answer

A)  behavioral segmentation. 
B)  affective segmentation. 
C)  socioeconomic segmentation. 
D)  psychographic segmentation. 
E)  sociocultural segmentation.

Question 9

Define product positioning.What are two approaches to product positioning?
 Give an example of each approach.

Accepted Answer

The answer of Define product positioning.What are two approaches to...

Question 10

ChoiceShirts is an online company that makes made-to-order T-shirts.Its online customers can order their shirts using any downloaded photo inserted into 600 templates or even design a shirt from scratch.This is an example of

Accepted Answer

A)  family branding. 
B)  mass customization. 
C)  multiple products and multiple market segments. 
D)  one product and multiple market segments. 
E)  specialty customization.

Question 11

The annual Sporting News Baseball Yearbook had exactly the same stories but with 17 different covers to appeal to baseball fans in 17 of the U.S.regions.What is the basis of its market segmentation strategy?

Accepted Answer

A)  psychographic segmentation 
B)  retail outlet segmentation 
C)  demographic segmentation 
D)  behavioral segmentation 
E)  geographic segmentation

Question 12

Grocery retailer Safeway displays the thousands of items it sells in aisles containing related items or product groupings.Examples would be the pet food aisle or the soft drink aisle.Why would Safeway display and sell product groupings in this manner?

Accepted Answer

A)  The groupings increase the number of market-product combinations on the market-product grid, which makes it a more manageable framework for subsequent analysis. 
B)  This form of product groupings makes it easier for customers to get in and out of the store more quickly, creating time utility. 
C)  The products are grouped so people can relate to them in a more meaningful way when they shop. 
D)  Product groupings can be generated quantitatively to show which adhere to the 80/20 rule. 
E)  Suppliers get preferential treatment based upon the number of different UPCs they provide.

Question 13

According to Tony Hsieh,CEO of Zappos,the company devotes the greatest amount of time to

Accepted Answer

A)  seeking new and unusual styles of shoes from all over the world. 
B)  improving the website to make it faster, more interesting, and fun. 
C)  seeking new markets that will go beyond the Internet. 
D)  finding the fastest and least expensive modes of delivery for its products. 
E)  finding ways to improve customer service levels.

Question 14

It is not recommended that a firm select a target segment that

Accepted Answer

A)  would require entry in a global marketplace. 
B)  requires more than one marketing action. 
C)  has few competitors that target this same segment. 
D)  is incompatible with its company's goals or objectives. 
E)  has a growth potential that would require increasing the current workforce.

Question 15

Personality and lifestyle are both variables used to employ __________ segmentation.

Accepted Answer

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

Question 16

Which of the following is a criterion used for selecting a target market?

Accepted Answer

A)  similarity of needs of potential buyers within a segment 
B)  difference of needs of sellers between segments 
C)  feasibility of a marketing action to reach a segment 
D)  expected market growth 
E)  simplicity and cost of assigning potential buyers to segments

Question 17

Figure 8-6 
-Figure 8-6 shows the market-product grid for a Wendy's restaurant next to a large urban university campus.Assume a large market (shown by a 3)is three times the size of a small market (shown by a 1)and a medium market (shown by a 2)is twice the size of a small market.The largest potential market segment consists of

Accepted Answer

A)  students that live in a dormitory. 
B)  that live in an apartment. 
C)  students that are day commuters. 
D)  students that are night commuters. 
E)  faculty or staff members.

Question 18

Segmentation based on some observable actions or attitudes by prospective customers,such as what benefits they seek,as well as where,how frequently,and why they buy,is referred to as

Accepted Answer

A)  demographic segmentation. 
B)  psychographic segmentation. 
C)  geographic segmentation. 
D)  behavioral segmentation. 
E)  socioeconomic segmentation.

Question 19

When expenses are greater than the potential increased sales from market segmentation,a firm should

Accepted Answer

A)  not consider market segmentation at this time. 
B)  combine departments within the company to make the process more streamlined. 
C)  reduce production costs or increase prices to facilitate the segmentation process. 
D)  seek alternate channels of distribution, including Internet sales. 
E)  discontinue manufacturing any products that are not in the mature stage of their product life cycle.

Question 20

Which of the following is a consumer market demographic segmentation variable?

Accepted Answer

A)  personality 
B)  occupation 
C)  usage rate 
D)  needs 
E)  region

Exam 8: Market Segmentation, targeting, and Positioning