Question 1

_____ segmentation and benefit segmentation are the two commonly used approaches for segmenting markets.

Accepted Answer

A)  Psychographic 
B)  Situational 
C)  Profit 
D)  Mass marketing

Question 2

Which of the following is the primary reason for studying consumer and organizational buyer behavior?

Accepted Answer

A)  To understand employees' relationships with their organization 
B)  To determine the effectiveness of an organization's marketing department 
C)  To provide bases for effective market segmentation 
D)  To determine an organization's distinctive competencies

Question 3

A positioning map is:

Accepted Answer

A)  constructed by surveying customers about various product attributes and developing a graph indicating the relative position of competitors. 
B)  used solely with benefit segmentation and includes an assessment of lifestyle choices based on activities, interests, and opinions. 
C)  implemented when marketers want to differentiate between the Young Digerati, Cosmopolitans, and American dreams. 
D)  an indication of the number of Experiencers and Strivers within a geographic area based on PRIZM analysis.

Question 4

A firm introduces electronic goods with new technology into the market. The firm decides to target consumers who are most receptive to new ideas and technologies. Which of the following groups of consumers should the firm target according the VALS™ framework?

Accepted Answer

A)  Makers 
B)  Survivors 
C)  Innovators 
D)  Thinkers

Question 5

The Nielsen PRIZM system includes maps of different areas that:

Accepted Answer

A)  rank neighborhoods on their potential to purchase specific products. 
B)  group consumers in particular countries that are similar in many respects. 
C)  help implement and control the strategic plan of that area. 
D)  are used for providing slotting allowances to retailers.

Question 6

Dawson & Peters' new line of leather boots are marketed as the hottest fashion trend of the season. The company puts up posters on billboards that featured several celebrities wearing the boots. The concept of the television ads was how wearing the boots could make you the envy of all those around you. According to the VALS™ framework, which of the following psychographic groups is Dawson & Peters targeting?

Accepted Answer

A)  Survivors 
B)  Strivers 
C)  Thinkers 
D)  Makers

Question 7

ConiferCraft is a furniture firm that specializes in creating customized furniture for the commercial market. The firm has recently acquired a large amount of funds from investors and is looking to diversify by introducing customized products for the industrial market. The firm has completed a complete situation analysis for the purpose and the results are favorable. According to the market segmentation process model, the firm must next:

Accepted Answer

A)  divide markets on relevant dimensions. 
B)  decide segmentation strategies. 
C)  develop product positioning strategies. 
D)  determine consumer needs and wants.

Question 8

In which of the following situations is it appropriate for a firm to become a mass marketer?

Accepted Answer

A)  The market is large and consists of several segments that are almost equal in size. 
B)  Heavy users make up such a large proportion of the sales volume that they are the only relevant target. 
C)  The largest segment is composed of light users, and hence, targeting them would yield the highest profits for the firm. 
D)  The brand is not dominant in the market, and targeting a large segment would benefit sales and profits.

Question 9

Identify the approach in which the marketing manager decides on the appropriate basis for segmentation in advance of conducting a research study on a market.

Accepted Answer

A)  A priori segmentation approach 
B)  Post hoc segmentation approach 
C)  Empirical approach 
D)  Psychographic approach

Question 10

Why is it inadvisable for a follower to attempt to directly position its product against the industry leader?

Accepted Answer

A)  Competing with market leaders can be costly and not often successful. 
B)  A follower's product usually dominates in sales and in the minds of customers. 
C)  It is difficult for followers to select segmentation strategies. 
D)  A follower can never compete with the industry leader in terms of product quality.

Question 11

In the VALS™ framework, _____ can be viewed as the opposite of Innovators in terms of resources and innovations.

Accepted Answer

A)  Strivers 
B)  Makers 
C)  Achievers 
D)  Survivors

Question 12

According to the VALS™ model, Strivers are:

Accepted Answer

A)  driven by knowledge and principles. 
B)  driven to demonstrate success. 
C)  driven by a desire for social or physical activity. 
D)  driven by a desire for risk taking.

Question 13

According to the VALS™ framework, which of the following psychographic groups have the most abundant resources and may be motivated by any of the three motivations of achievement, self-expression, and ideals?

Accepted Answer

A)  Innovators 
B)  Thinkers 
C)  Achievers 
D)  Strivers

Question 14

Which of the following approaches for determining key market dimensions would be useful in the case of segmentation for entirely new products?

Accepted Answer

A)  An a priori approach 
B)  A post hoc approach 
C)  An empirical approach 
D)  A cross-functional approach

Question 15

Which of the following constitutes a viable market segment?

Accepted Answer

A)  A particular group of consumers who have varying preferences for products and services 
B)  A particular group of consumers of a single item who can be served profitably by a firm 
C)  A group of products and services that can be mass marketed profitably by a firm 
D)  A group of consumers with needs that can be seldom met by a single product item offered by a firm

Question 16

According to the market segmentation process model, which of the following steps is a company likely to undertake after it has determined the basic segments of the market that could potentially be satisfied with its product?

Accepted Answer

A)  Developing the product positioning plan 
B)  Deciding the segmentation strategy 
C)  Designing the marketing mix strategy 
D)  Determining the product mix

Question 17

"The Greedy Hand" is a book on the U.S. income tax system. Its publisher has targeted people who hold Libertarian political beliefs and listen to conservative radio talk shows. The publisher has used _____ segmentation in this scenario.

Accepted Answer

A)  mass market 
B)  post hoc 
C)  psychographic 
D)  geodemographic

Question 18

Which of the following describes the function of geodemographic segmentation?

Accepted Answer

A)  It stresses the belief that the benefits people are seeking in consuming a given product are the basic reasons for the existence of true market segments. 
B)  It identifies the specific households in a market by focusing on local neighborhood areas and creates classifications of neighborhoods where people live and shop. 
C)  It determines the type of lifestyles that consumers have by asking them about their activities, interests, and opinions, and groups them based on the similarity of their responses. 
D)  It identifies the consumers' primary motivations and whether they are driven by ideals, achievement, and/or self-expression.

Question 19

According to the VALS™ framework, consumers who are driven by a goal of demonstrating success to their peers and are motivated primarily by achievement can be best classified as _____.

Accepted Answer

A)  Strivers 
B)  Makers 
C)  Believers 
D)  Thinkers

Question 20

In the market segmentation process, delineation of a firm's current situation is followed by the determination of:

Accepted Answer

A)  consumer needs and wants. 
B)  marketing mix strategies. 
C)  product positioning strategies. 
D)  relevant dimensions for market segmentation.

Exam 5: Market Segmentation