Question 1

Behavioral segmentation may be based on

Accepted Answer

A) lifestyles and demographics. 
B) retailer and wholesaler behaviors. 
C) geographic and demographic criteria. 
D) product features and retail store type. 
E) demand and supply.

Question 2

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 3

The process of segmenting a market and selecting specific segments as targets is the link between the various buyers' or market needs and

Accepted Answer

A) industry standards. 
B) government regulations. 
C) top-level management. 
D) controllable environmental factors. 
E) the organization's marketing program.

Question 4

-Figure 8-7 above shows the market-product grid for a Wendy's restaurant next to a large urban university campus with chosen market segments and product groupings. The next step is to develop a simple marketing action to reach a target market. Sending out coupons for 10 percent off all purchases between 2:00 p.m. and 4:30 p.m. during the winter quarter would target potential

Accepted Answer

A) dormitory customers. 
B) night commuter customers. 
C) between-meal snack customers. 
D) after-dinner snack customers. 
E) apartment customers.

Question 5

Which of the following statements best illustrates geographic segmentation?

Accepted Answer

A) GE builds a downsized microwave oven to hang under kitchen cabinets. 
B) Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners. 
C) In China, KFC sells a spicier chicken the farther away its restaurants are from the coastal areas. 
D) A fast food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays. 
E) A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area.

Question 6

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) market size 
E) simplicity and cost of assigning potential buyers to segments

Question 7

The State of Alabama Board of Tourism ran a series of ads showing traditional families enjoying various attractions in the state. Since the apparent target of these ads is the traditional family, it appears that the State of Alabama Board of Tourism has segmented the market using __________ variables.

Accepted Answer

A) demographic 
B) regional 
C) socioeconomic 
D) geographic 
E) psychographic

Question 8

When considering the quick-service restaurant competition, it will be most important for Wendy's to consider not only the offerings of Burger King, McDonald's, Five Guys Burgers, and other hamburger chains but also the

Accepted Answer

A) meals at golf and country clubs. 
B) dormitory meal plans at surrounding colleges and universities. 
C) items for sale at gas stations and convenience stores. 
D) local farmer's markets that sell produce. 
E) nearly every food item sold at local grocery stores.

Question 9

Assume you are manager of The Outback Steak House, a franchised restaurant that has opened at new location in St. Louis. Describe which segmentation base(s) and possible segmentation variable(s) you would use to segment its market and explain why each supports the appropriate market segmentation strategy.

Accepted Answer

The answer of Assume you are manager of The Outback...

Question 10

What is market segmentation and why is it important?

Accepted Answer

The answer of What is market segmentation and why is...

Question 11

Frequency marketing is a strategy that focuses on

Accepted Answer

A) demographics. 
B) benefits offered. 
C) usage rate. 
D) geography. 
E) lifestyle

Question 12

Recently Colgate-Palmolive introduced Colgate Enamel Health toothpaste, one that claims to replenish and polish tooth enamel, the hard outer layer of the tooth that provides a protective barrier to inner layers. This new formula helps to separate the Colgate product from its top competitors, such as Crest. What marketing strategy did Colgate-Palmolive use here?

Accepted Answer

A) product differentiation 
B) product segmentation 
C) market expansion 
D) usage segmentation 
E) psychographic segmentation

Question 13

A marketing manager goes through several steps to put a market segmentation plan into effect. This includes being able to form market segments and then __________ without encountering excessive costs.

Accepted Answer

A) eliminate potential non-buyers 
B) identify segmentation variables 
C) select the market segment(s) to target 
D) redirect their purchase behaviors 
E) ignore any and all similarities

Question 14

-According to the Apple market-product grid above, Apple would most likely get the LEAST product synergies from the

Accepted Answer

A) Mac Pro and MacBook Pro. 
B) Mac Pro and iMac. 
C) Mac Pro and MacBook Air. 
D) Mac Pro and Mac Mini. 
E) iMac and Mac Mini.

Question 15

In the sneaker business, Heelys practiced __________ positioning when it introduced a line of Heelys sneakers that came with an imbedded, detachable wheel in the shoe's heel marketed to young teens.

Accepted Answer

A) head-to-head 
B) parallel market 
C) lateral 
D) repositioning 
E) differentiation

Question 16

Which of the following is a basis used to segment U.S. organizational markets?

Accepted Answer

A) geographic 
B) psychographic 
C) income 
D) prospects 
E) education

Question 17

A means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand, is referred to as a

Accepted Answer

A) perception matrix. 
B) growth-share matrix. 
C) market-product grid. 
D) perceptual map. 
E) product differentiation chart.

Question 18

In marketing, each __________ consists of people who are relatively similar to each other in terms of their consumption behavior.

Accepted Answer

A) demographic cluster 
B) organizational buyer group 
C) market segment 
D) ultimate consumer group 
E) qualified prospect group

Question 19

Recently, U.S. dairies, struggling to increase milk sales, tried to change the way adults thought about chocolate milk. The dairies wanted to __________ chocolate milk in the minds of adult consumers.

Accepted Answer

A) segment 
B) differentiate 
C) explain 
D) promote 
E) reposition

Question 20

At a Hallmark store you can find several lines of greeting cards, including Fresh Ink, Nature's Sketchbook, Shoebox, Maxine, Mahogany, and Tree of Life cards - all made by Hallmark for sale in its stores and intended to appeal to different target markets. The Mahogany line is designed to appeal to African-Americans. This is an example of __________ segmentation.

Accepted Answer

A) regional 
B) lifestyle 
C) demographic 
D) geographic 
E) psychographic

Exam 8: Market Segmentation, Targeting, and Positioning