Question 1

Market segmentation involves aggregating prospective buyers into groups that __________ and will respond similarly to a marketing action.

Accepted Answer

A) respond similarly to marketing messages 
B) have similar shopping styles 
C) will become loyal customers 
D) have common needs 
E) will become stakeholders of the organization

Question 2

Best Foods Company is considering expanding beyond the regional market segments now served by its Hellmann's mayonnaise. One criterion management wants to use to evaluate potential new geographic market segments is whether additional real estate must be purchased or leased to serve new segments. This is an example of which criterion used to select target market segments?

Accepted Answer

A) Best Foods' competitive position in the segment 
B) Best Foods' product groupings 
C) expected growth of the market segment 
D) size of the market segment 
E) cost of reaching the segment

Question 3

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

Accepted Answer

A) seeking out 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 out 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 4

An analysis of the pillow market using a market-product grid suggests that the most important segment to target is

Accepted Answer

A) side sleepers. 
B) sleepers with sleep disorders, such as sleep apnea. 
C) sleepers with annual incomes of $50,000 and over. 
D) back sleepers. 
E) stomach sleepers.

Question 5

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

Accepted Answer

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

Question 6

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 7

-To the owner of a Wendy's fast food restaurant, the information in Figure 8-4 above suggests that Wendy's prospects are __________ of the total compared to __________ for McDonald's.

Accepted Answer

A) 57.0 percent, 51.0 percent 
B) 15.2 percent, 40.5 percent 
C) 14.6 percent, 14.6 percent 
D) 15.2 percent, 19.0 percent 
E) 57.0 percent, 26.0 percent

Question 8

Which of the following is NOT a reason to segment a market?

Accepted Answer

A) The ability to assign buyers to a segment is simple and cost-effective. 
B) It would cause an increase in market share or profit. 
C) All the buyers in the entire market have similar wants and needs. 
D) There is a potential marketing action to reach it. 
E) There are different wants and needs of buyers in the entire market.

Question 9

There are five steps involved in segmenting and targeting markets. What should a marketer do after he or she has grouped products to be sold into categories?

Accepted Answer

A) create product groupings 
B) identify market needs 
C) take marketing actions to reach target markets 
D) develop a market-product grid and estimate size of markets 
E) form prospective buyers into market segments

Question 10

Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to offer

Accepted Answer

A) a low-priced product to a high-income or high net worth segment. 
B) a high-priced product to a low-income or low net worth segment. 
C) different variations of the same basic offering to high-end and low-end segments. 
D) a high-priced and a low-priced offering to a single market segment. 
E) different offerings to high-end and low-end segments.

Question 11

MyTwinn makes dolls that look like young girls. For $119, the firm will make a doll that looks just like a photograph. So, if you send in the money and a photo of your young niece, she could have a doll that is her twin! This is an example of

Accepted Answer

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

Question 12

Magazines like Fitness, Field & Stream, Golf Digest, and Health focus on how people live their lives, and thus all use a __________ segmentation strategy.

Accepted Answer

A) psychographic 
B) behavioral 
C) situational 
D) socioeconomic 
E) geographic

Exam 8: Market Segmentation, Targeting, and Positioning