Question 1

Which of the following is not one of the major categories of consumer market segmentation variables?

Accepted Answer

A)  Demographic characteristics 
B)  Geographic variables 
C)  Psychographic dimensions 
D)  Situational variables 
E)  Behavioristic characteristics

Question 2

A company sales forecast is the amount of a product that a firm actually expects to sell during a specific time period.

Accepted Answer

A) True 
 B)False

Question 3

The ability to purchase a product is a function of

Accepted Answer

A)  buying power. 
B)  desire. 
C)  willingness. 
D)  authority. 
E)  needs.

Question 4

Use the following to answer the questions.
GE Transportation produces locomotive engines for sale in countries around the world.After looking at the total market for locomotive engines,the company found that different rail lines wanted engines.Major rail lines in the U.S.and South America wanted engines to haul heavy freight.Rail lines in Sweden and Germany were interested in a cleaner,greener locomotive engine.Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country.GE Transportation is currently manufacturing its GE 4400 for heavy freight,its Hybrid Eco-Engine,and its Dash 9,suited for shortline transport.
-Refer to Scenario 5.2.If a GE Transportation researcher analyzes monthly sales data for a four-year time frame,looking for periodic fluctuations,the researcher is doing a ____ analysis.

Accepted Answer

A)  trend 
B)  seasonal 
C)  cycle 
D)  random factor 
E)  regression

Question 5

Discuss the advantages and disadvantages of using executive judgment in forecasting company sales.

Accepted Answer

The answer of Discuss the advantages and disadvantages of using...

Question 6

Why do marketers rely heavily on demographic characteristics when segmenting consumer markets?

Accepted Answer

The answer of Why do marketers rely heavily on demographic...

Question 7

A business advantage of the concentrated targeting strategy for any company is that it

Accepted Answer

A)  requires less market research and information. 
B)  requires less intensive analysis of customers' characteristics and needs. 
C)  allows a firm to utilize all of its production capacity. 
D)  maintains the firm's flexibility in moving into other market segments. 
E)  allows a firm to develop a special marketing mix for a single market segment.

Question 8

Use the following to answer the questions.
GE Transportation produces locomotive engines for sale in countries around the world.After looking at the total market for locomotive engines,the company found that different rail lines wanted engines.Major rail lines in the U.S.and South America wanted engines to haul heavy freight.Rail lines in Sweden and Germany were interested in a cleaner,greener locomotive engine.Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country.GE Transportation is currently manufacturing its GE 4400 for heavy freight,its Hybrid Eco-Engine,and its Dash 9,suited for shortline transport.
-Refer to Scenario 5.2.Researchers at GE Transportation estimate that 1,000 rail lines throughout the world will purchase some kind of locomotive engine next year.That number represents the

Accepted Answer

A)  company sales potential. 
B)  breakdown approach. 
C)  market potential. 
D)  buildup approach. 
E)  company sales forecast.

Question 9

A widely used system for classifying individuals on the basis of lifestyle is

Accepted Answer

A)  VALS. 
B)  PRIZM. 
C)  CMSA. 
D)  LIFO. 
E)  Prospect Zone.

Question 10

Most markets for products are made up of individuals or groups with diverse needs for products and are called ____ markets.

Accepted Answer

A)  undifferentiated 
B)  concentrated 
C)  homogenous 
D)  differentiated 
E)  heterogeneous

Question 11

A market is a group of people who,as individuals,have needs for products in a product class and have the ability,willingness,and authority to purchase such products.

Accepted Answer

A) True 
 B)False

Question 12

After a firm has identified an appropriate targeting strategy,the next step in the target market selection process is

Accepted Answer

A)  determining the demographic variables of the target market. 
B)  developing market segment profiles. 
C)  determining which segmentation variables to use. 
D)  selecting specific target markets. 
E)  evaluating relevant market segments.

Question 13

What are the conditions under which an undifferentiated targeting strategy is effective? Why are these conditions essential?

Accepted Answer

The answer of What are the conditions under which an...

Question 14

The term market density refers to the number of potential customers per unit of land area,such as per square mile.

Accepted Answer

A) True 
 B)False

Question 15

Motives can be used to segment markets.

Accepted Answer

A) True 
 B)False

Question 16

End use,price sensitivity,and brand loyalty are all ____ variables that can be used in market segmentation.

Accepted Answer

A)  psychographic 
B)  usage 
C)  demographic 
D)  geodemographic 
E)  behavioristic

Question 17

Individuals' ability to buy depends on the amount of their buying power.

Accepted Answer

A) True 
 B)False

Question 18

One condition for effective segmentation is that at least one segment must have substantial profit potential.

Accepted Answer

A) True 
 B)False

Question 19

The undifferentiated strategy can be effective for an organization that has a homogeneous market and can develop and maintain a single marketing mix.

Accepted Answer

A) True 
 B)False

Question 20

When evaluating relevant market segments,cost estimates are important to determine if an organization entering a particular segment can operate at costs equal to or below those of competitors.

Accepted Answer

A) True 
 B)False

Exam 5: Selecting Target Markets

Which of the following is not one of the major categories of consumer market segmentation variables?

A company sales forecast is the amount of a product that a firm actually expects to sell during a specific time period.

The ability to purchase a product is a function of

Discuss the advantages and disadvantages of using executive judgment in forecasting company sales.

Why do marketers rely heavily on demographic characteristics when segmenting consumer markets?

A business advantage of the concentrated targeting strategy for any company is that it

A widely used system for classifying individuals on the basis of lifestyle is

Most markets for products are made up of individuals or groups with diverse needs for products and are called ____ markets.

A market is a group of people who,as individuals,have needs for products in a product class and have the ability,willingness,and authority to purchase such products.

After a firm has identified an appropriate targeting strategy,the next step in the target market selection process is

What are the conditions under which an undifferentiated targeting strategy is effective? Why are these conditions essential?

The term market density refers to the number of potential customers per unit of land area,such as per square mile.

Motives can be used to segment markets.

End use,price sensitivity,and brand loyalty are all ____ variables that can be used in market segmentation.

Individuals' ability to buy depends on the amount of their buying power.

One condition for effective segmentation is that at least one segment must have substantial profit potential.

The undifferentiated strategy can be effective for an organization that has a homogeneous market and can develop and maintain a single marketing mix.

When evaluating relevant market segments,cost estimates are important to determine if an organization entering a particular segment can operate at costs equal to or below those of competitors.