Deck 2: Market Segmentation and Real-Time Bidding

Question 1

When Colgate commonly targets age groups into four segments and offers each one its own toothpaste, they are using ________ segmentation.

A) demographic
B) sociocultural
C) psychological
D) physiological
E) use-related

Answer 1

A

Question 2

Which of the following is NOT one of the characteristics of an effective target?

A) identifiable
B) sizeable
C) reachable
D) inaccessible
E) congruent with the marketer's objectives and resources

Answer 2

D

Question 3

Qantas Airlines targets four distinct segments: coach passengers, premium economy, business and first class, and uses ________ to clearly differentiate between the options targeted at each segment.

A) positioning
B) behavioral targeting
C) geographic segmentation
D) reverse targeting
E) countersegmentation

Answer 3

A

Question 4

In reference to consumer characteristics, ________ can be determined from direct questioning or observation and categorized by a simple objective measure, whereas ________ are abstract and can be determined only through more complex psychological and attitudinal questioning.

A) consumption-based features; consumer-intrinsic features
B) behavioral data; cognitive data
C) product-specific features; consumption-based features
D) cognitive data; behavioral data
E) consumer-intrinsic features; consumption-based features

Question 5

Consumers' characteristics can be classified as either behavioral or cognitive. In this context, behavioral data can be determined from direct questioning and categorized by a single objective measure. Examples of behavioral data include ________.

A) demographics, gender, and benefits wanted
B) usage rate, level of involvement, and psychographics
C) personality traits, lifestyles, and family life cycle
D) education, quantity of product purchased, and gender
E) level of involvement, awareness of product alternatives, and benefits wanted

Question 6

Another term for psychographic characteristics is ________.

A) age
B) lifestyles
C) benefits sought
D) use-situation factors
E) use-related factors

Question 7

Consumers' characteristics can be classed as either behavioral or cognitive. In this context, cognitive factors are abstract, can be determined only through more complex psychological and attitudinal questioning, and generally have no single, universal definitions. Examples of cognitive factors include ________.

A) demographics, gender, and benefits wanted
B) usage rate, level of involvement, and education
C) personality traits, lifestyles, and gender
D) education, usage situation, and social class
E) cultural values, personality traits, and benefits sought

Question 8

The ________ of a product or service is the process by which a company creates a distinct image and identity for its products, services, and brands in consumers' minds.

A) segmentation
B) target
C) positioning
D) psychographic inventory
E) concentrated marketing strategy

Question 9

________ is felt by many marketers to be a strong indicator of the ability to pay for a product.

A) Age
B) Gender
C) Occupation
D) Education
E) Income

Question 10

A financial firm advertising in the Wall Street Journal should use which database to determine which geographic areas of the country include substantial numbers of their Business Class segment?

A) Nielsen MyBestSegments
B) VALS
C) PRIZM
D) Nielsen NetRatings
E) Magazine Readers Index (MRI)

Question 11

Consumers' characteristics can be classed as either consumer-intrinsic or consumption-specific. In this context, consumer-intrinsic features stem from the consumer's physical, social, and psychological characteristics. Examples of consumer-intrinsic features include ________.

A) demographics, gender, and benefits sought
B) usage rate, level of involvement, and psychographics
C) personality traits, cultural values, and income
D) education, consumption-specific attitudes, and social class
E) attitudes regarding shopping, awareness of product alternatives, and benefits wanted

Question 12

The process of dividing a market into distinct subsets of consumers with common needs or characteristics is known as ________.

A) target marketing
B) market segmentation
C) consumer behavior
D) the marketing concept
E) market evaluation

Question 13

Which of the following is NOT an example of the recent shift in traditional gender roles in product targeting and advertising?

A) Van Gogh Blue vodka targeting women
B) Frito-Lay targeting women
C) television shows targeting women
D) department stores targeting men with grooming products
E) Dove Men+Care

Question 14

Traditionally, the ________ has been the focus of most marketing efforts.

A) mother
B) family
C) individual
D) child
E) teen

Question 15

________ is/are defined by computing an index based on three quantifiable variables: income, education, and occupation.

A) Demographics
B) Social class
C) Psychographics
D) Personality traits
E) Sociocultural values

Question 16

________ information is often the most accessible and cost-effective way to identify a target market.

A) Demographic
B) Sociocultural
C) Psychological
D) Physiological
E) Benefit

Question 17

As a base for market segmentation, ________ is/are commonly computed as a weighted index of education, occupation, and income.

A) social class
B) family life cycle
C) personality traits
D) sociocultural values
E) psychographics

Question 18

Consumers' characteristics can be classed as either consumer-intrinsic or consumption-specific. In this context, consumption-specific features are attitudes and preferences toward specific products or buying situations. Examples of consumption-specific features include ________.

A) demographics, gender, and benefits sought
B) attitudes toward shopping, benefits sought in products, and frequency of leisure activities
C) personality traits, lifestyles, and income
D) education, usage situation, and gender
E) personality traits, awareness of product alternatives, and attitudes toward political issues

Question 19

Age, gender, and income are bases of which of the following types of segmentation?

A) geographic segmentation
B) sociocultural segmentation
C) benefit segmentation
D) demographic segmentation
E) psychological segmentation

Question 20

Many marketers target the generation that is 18 to 34 years old, known as the ________.

A) millennial Generation
B) generation X
C) generation Z
D) net gen
E) baby boomers

Question 21

In the VALS typology, Thinkers are motivated by ideals and tend to have high resources. They tend to be well educated and actively seek out information in the decision-making process. This segment tends to prefer ________.

A) familiar products and established brands
B) value over luxury, and tend to buy basic products
C) products that offer reliability and value
D) products that reflect cultivated tastes for upscale niche products and services
E) premium products that demonstrate success to their peers

Question 22

Consumer innovators are generally characterized by which of the following personality traits?

A) confident enough to experiment and self directed more than others in trying new things
B) reserved and skeptical of marketing information
C) extraverted and risk averse
D) high in exhibition and reserved
E) extraverted and reserved

Question 23

The VALS typology classifies the American adult population into eight distinctive subgroups based on their motivations and level of resources. The three primary motivations include ________.

A) ideals, education, and achievement
B) ideals, achievement, and self-expression
C) knowledge, education, and self-expression
D) independence, aptitude, and achievement
E) aptitude, ideals, and self-expression

Question 24

The widely used segmentation system combining lifestyle and values is ________.

A) PALS
B) VALS
C) LAPS
D) SALS
E) CALS

Question 25

PRIZM is an example of ________ segmentation.

A) demographic
B) geodemographic
C) psychographic
D) sociocultural
E) use-related

Question 26

In the VALS typology, Makers are motivated by self-expression and tend to have low resources. They choose hands-on constructive activities and spend leisure time with family and close friends. This segment tends to prefer ________.

A) familiar products and established brands
B) value over luxury, and tend to buy basic products
C) products that offer durability, functionality, and value
D) products that reflect cultivated tastes for upscale niche products and services
E) premium products that demonstrate success to their peers

Question 27

The most popular use of geography in strategic targeting is ________ - a hybrid segmentation scheme based on the premise that people who live close to one another are likely to have similar financial means, tastes, preferences, lifestyles, and consumption habits.

A) countersegmentation
B) geodemographics
C) behavioral targeting
D) social class
E) psychographics

Question 28

Beyond flavor and the presence or absence of sugar, Nicorette offers a gum that will whiten your teeth while satisfying your nicotine craving and helping you quit smoking. This gum has been positioned on the basis of ________.

A) demographic segmentation
B) family life cycle segmentation
C) psychographic segmentation
D) mass marketing
E) benefit segmentation

Question 29

Sunshine Cruise Lines markets Adventure Cruises as a way to see multiple islands from the comfort of a single ship, alleviating the hassle of flying between islands and staying in a different hotel every couple of nights. Targeting consumers who view this convenience as appealing is an example of ________.

A) countersegmentation
B) cultural segmentation
C) usage rate segmentation
D) demographic segmentation
E) benefit segmentation

Question 30

Marketers segment some populations on the basis of cultural heritage and ________ because members of the same culture tend to share the same values, beliefs, and customs.

A) demographics
B) social class
C) ethnicity
D) personality traits
E) sociocultural values

Question 31

Rosetta Car Rental exercises ________ when it stocks more convertible cars in California than in New York.

A) demographic segmentation
B) geographic segmentation
C) sociocultural segmentation
D) psychographic segmentation
E) usage-situation segmentation

Question 32

Lifestyles, also known as ________, consist of activities, interests, and opinions.

A) psychographics
B) demographics
C) geodemographics
D) personality traits
E) benefit segmentation

Question 33

When Colgate offers Colgate Total, which provides 12-hours of germ fighting; Colgate Max Fresh, which fights bad breath; and Colgate Sensitive Pro-Relief for people who have sensitive gums, they are segmenting based on ________.

A) usage rate
B) benefits
C) personality
D) culture
E) values

Question 34

Level of agreement with which of the following statements is associated with the Personal Controls Psychographic Factor?

A) I generally give gifts because people expect me to.
B) I seek fun and enjoyment in life.
C) The look of a website is an important factor in my buying decisions.
D) My friends often ask me for advice on fashion.
E) I am more conventional than experimental.

Question 35

In the VALS typology, Achievers are motivated by achievement and tend to have high resources. They have goal-oriented lifestyles that center on family and career. This segment tends to prefer ________.

A) familiar products and established brands
B) value over luxury, and tend to buy basic products
C) products that offer durability, functionality, and value
D) products that reflect cultivated tastes for upscale niche products and services
E) premium products that demonstrate success to their peers

Question 36

In the VALS typology, Innovators are successful, take-charge people with high self-esteem. Because they have such abundant resources, they exhibit all three primary motivations in varying degrees. They are change leaders and are the most receptive to new ideas and technologies. This segment tends to prefer ________.

A) familiar products and established brands
B) value over luxury, and tend to buy basic products
C) products that offer durability, functionality, and value
D) products that reflect cultivated tastes for upscale niche products and services
E) premium products that demonstrate success to their peers

Question 37

Rate of usage is strongly related to two cognitive dimensions: product involvement and ________.

A) product awareness status
B) background
C) personality
D) awareness
E) country of origin

Question 38

________ implies a hierarchy in which individuals in the same class generally have the same degree of status, whereas members of other classes have either higher or lower status.

A) Usage rate
B) Subculture
C) Family life cycle
D) Social class
E) Religion

Question 39

Marketers of many products such as soup, laundry detergent, beer, and dog food have found that a relatively small group of heavy users accounts for a disproportionately large percentage of the total product usage. Targeting these heavy users specifically is an example of ________.

A) benefit-based segmentation
B) demographic segmentation
C) cross-cultural segmentation
D) usage-rate segmentation
E) usage situation segmentation

Question 40

In the VALS typology, ________ are motivated by ideals and tend to have low resources. They are generally slow to change as well as technology averse, and tend to prefer familiar products and established brands.

A) Innovators
B) Believers
C) Thinkers
D) Strivers
E) Experiencers

Question 41

CRUISE MINI CASE: Sunshine Cruise Lines is a cruise operator that offers three- to seven-day cruises along five Caribbean routes. It has developed a reputation as a party cruise operator and the majority of its revenue comes from vacationing college students. This type of customer demand is highly cyclical, and Sunshine finds that repeat purchase is high while its consumers are in college, but practically disappears after graduation. In an effort to encourage its customers to continue taking Sunshine Cruises after they have graduated, the cruise operator has begun offering Adventure Cruises, with port stops on islands known for eco-tourism and biodiversity, both on land and offshore, appealing to young professionals who like to hike and scuba dive or snorkel. In contrast to its party cruises, Sunshine focuses its marketing message for Adventure Cruises on activities at port stops and the convenience of being able to explore several Caribbean destinations from the comfort of a single ship. Adventure Cruises are roughly 15% more expensive than party cruises, priced to discourage a raucous college-age party crowd, and do not allow children under 18. The first season of Adventure Cruises was a great success and, much to Sunshine's surprise, attracted not only the intended young professional crowd, but also many empty nester couples who were looking for a reasonably priced, active vacation.
In the CRUISE MINI CASE, of the eight VALS segments, Sunshine is most likely targeting ________ with its new Adventure Cruises.

A) Makers
B) Survivors
C) Experiencers
D) Strivers
E) Believers

Question 42

MUSEUM MINI CASE: Central City Art Museum is looking to increase museum revenues by trying to draw more people to the museum. Research has shown that the most frequent users of the museum are over 55 years old, have college degrees, and have a household income of over $100,000. Less frequent users of the museum have the same education and income profile as frequent users, but tend to be younger, between 35 and 55. Surveys suggest that these younger adults would use the museum more frequently, but do not have enough time due to the demands of their children and families. In order to increase museum entrance revenues, the administrative team wants to attract people who are likely to become heavy users of the museum when they get older, and try to bring them into the heavy user category at an earlier age. In an effort to encourage heavy museum use, the museum has begun a membership program that offers discounts on museum entrance and gift shop purchases and special exhibit preview events for members. The museum has also begun to offer free children's art and museum appreciation classes on weekend afternoons that will allow younger adults to drop their children off once a week and then enjoy the museum's exhibits and café. In order to promote its new children's programming, the museum acquired an address list of local households with children, including the ages of those children, and intends to send tailored messages specifically highlighting programming that is age-appropriate for each household's children.
In the MUSEUM MINI CASE, the museum's approach to promoting its new children's programming is best described as ________.

A) showrooming
B) geofencing
C) narrowcasting
D) concentrated marketing
E) demographic segmentation

Question 43

Most marketers prefer to target consumer segments that are ________.

A) small
B) profitable
C) unpredictable
D) inaccessible
E) expensive to pursue

Question 44

________ are bits of computer code placed on browsers to keep track of online activity.

A) Data brokers
B) Candies
C) Cookies
D) Binodes
E) Real-time bidding

Question 45

Whether or not consumers need to be informed about a product relates to consumers' ________.

A) awareness status
B) usage situation
C) attitude
D) usage rate
E) learning-involvement

Question 46

MUSEUM MINI CASE: Central City Art Museum is looking to increase museum revenues by trying to draw more people to the museum. Research has shown that the most frequent users of the museum are over 55 years old, have college degrees, and have a household income of over $100,000. Less frequent users of the museum have the same education and income profile as frequent users, but tend to be younger, between 35 and 55. Surveys suggest that these younger adults would use the museum more frequently, but do not have enough time due to the demands of their children and families. In order to increase museum entrance revenues, the administrative team wants to attract people who are likely to become heavy users of the museum when they get older, and try to bring them into the heavy user category at an earlier age. In an effort to encourage heavy museum use, the museum has begun a membership program that offers discounts on museum entrance and gift shop purchases and special exhibit preview events for members. The museum has also begun to offer free children's art and museum appreciation classes on weekend afternoons that will allow younger adults to drop their children off once a week and then enjoy the museum's exhibits and café. In order to promote its new children's programming, the museum acquired an address list of local households with children, including the ages of those children, and intends to send tailored messages specifically highlighting programming that is age-appropriate for each household's children.
In the MUSEUM MINI CASE, dividing museum attendees into frequent users, less frequent users, and non-users is known as ________.

A) geographic segmentation
B) benefit segmentation
C) usage rate segmentation
D) sociocultural segmentation
E) psychographic segmentation

Question 47

MUSEUM MINI CASE: Central City Art Museum is looking to increase museum revenues by trying to draw more people to the museum. Research has shown that the most frequent users of the museum are over 55 years old, have college degrees, and have a household income of over $100,000. Less frequent users of the museum have the same education and income profile as frequent users, but tend to be younger, between 35 and 55. Surveys suggest that these younger adults would use the museum more frequently, but do not have enough time due to the demands of their children and families. In order to increase museum entrance revenues, the administrative team wants to attract people who are likely to become heavy users of the museum when they get older, and try to bring them into the heavy user category at an earlier age. In an effort to encourage heavy museum use, the museum has begun a membership program that offers discounts on museum entrance and gift shop purchases and special exhibit preview events for members. The museum has also begun to offer free children's art and museum appreciation classes on weekend afternoons that will allow younger adults to drop their children off once a week and then enjoy the museum's exhibits and café. In order to promote its new children's programming, the museum acquired an address list of local households with children, including the ages of those children, and intends to send tailored messages specifically highlighting programming that is age-appropriate for each household's children.
In the MUSEUM MINI CASE, the most important differentiating factor between frequent and less frequent users is ________.

A) income
B) age
C) gender
D) education
E) stage of family life cycle

Question 48

Which of the following is NOT tracked during online navigation to inform behavioral targeting?

A) the sites consumers visit
B) the pages consumers look at on a site
C) lifestyles and personalities
D) how often consumers return to a site
E) brick-and-mortar purchases

Question 49

________ is the process by which a company intentionally changes the distinct image and identity that its product or brand occupies in consumers' minds.

A) Premier position
B) Positioning against competition
C) Repositioning
D) Key attribute positioning
E) Umbrella positioning

Question 50

Which of the following is NOT one of the characteristics of an effective target?

A) identifiable
B) sizeable
C) reachable
D) inaccessible
E) congruent with the marketer's objectives and resources

Question 51

CRUISE MINI CASE: Sunshine Cruise Lines is a cruise operator that offers three- to seven-day cruises along five Caribbean routes. It has developed a reputation as a party cruise operator and the majority of its revenue comes from vacationing college students. This type of customer demand is highly cyclical, and Sunshine finds that repeat purchase is high while its consumers are in college, but practically disappears after graduation. In an effort to encourage its customers to continue taking Sunshine Cruises after they have graduated, the cruise operator has begun offering Adventure Cruises, with port stops on islands known for eco-tourism and biodiversity, both on land and offshore, appealing to young professionals who like to hike and scuba dive or snorkel. In contrast to its party cruises, Sunshine focuses its marketing message for Adventure Cruises on activities at port stops and the convenience of being able to explore several Caribbean destinations from the comfort of a single ship. Adventure Cruises are roughly 15% more expensive than party cruises, priced to discourage a raucous college-age party crowd, and do not allow children under 18. The first season of Adventure Cruises was a great success and, much to Sunshine's surprise, attracted not only the intended young professional crowd, but also many empty nester couples who were looking for a reasonably priced, active vacation.
In the CRUISE MINI CASE, Sunshine markets Adventure Cruises as a way to see multiple islands from the comfort of a single ship, alleviating the hassle of flying between islands and staying in a different hotel every couple of nights. Targeting consumers who view this convenience as appealing is an example of ________.

A) countersegmentation
B) cultural segmentation
C) usage rate segmentation
D) demographic segmentation
E) benefit segmentation

Question 52

Peter wants to segment the target audience for his frozen yogurt shop based on benefits sought. Unlike demographic variables, the benefits sought variable is difficult to measure, so it is not as ________.

A) profitable
B) stable in terms of consumption patterns
C) identifiable
D) inaccessible
E) expensive to pursue

Question 53

________ consists of looking at merchandise at a physical store, scanning its barcode with smartphones and using these devices to check the items' prices and purchase the items online.

A) Mobile Targeting
B) Geofencing
C) Psychographics
D) Showrooming
E) GPS marketing

Question 54

The greeting card industry capitalizes on occasions to sell products; this is a perfect example of ________ segmentation.

A) lifestyle
B) benefit
C) usage situation
D) demographic
E) geographic

Question 55

________ segmentation differentiates among heavy users, medium users, light users, and nonusers of a specific product, service or brand.

A) Brand awareness
B) Brand loyalty
C) Usage rate
D) Sociocultural
E) Benefit

Question 56

________ are measures that predict consumers' future purchases on the basis of past buying information and other data.

A) Showroom analytics
B) Predictive analytics
C) Geofencing analytics
D) Social analytics
E) Consumer spying analytics

Question 57

Research has shown that 25 percent of beer drinkers account for about 75 percent of all beer consumed. This is an example of a justification for ________ segmentation.

A) benefit
B) usage rate
C) psychographic
D) lifestyle
E) usage-situation

Question 58

The image and unique identity of a product, service or brand in consumers' minds is called its ________.

A) position
B) perception
C) segment
D) target
E) imposition

Question 59

Acxiom databases track all of the following EXCEPT ________.

A) weight
B) vacation dreams
C) household health worries
D) education
E) fingerprints

Question 60

Promotional alerts sent to the smartphones of customers, who opted into this service, when the customers near or enter the store is called ________.

A) psychographic segmentation
B) geodemographic segmentation
C) real-time bidding
D) showrooming
E) geofencing

Question 61

Education, occupation, and income tend to be closely correlated.

Question 62

When Qantas Airlines offers First Class, Business Class, Premium Economy, and Economy, with different features and amenities for each segment, they are engaged in positioning.

Question 63

Positioning is the process by which a company creates a distinct image and identity for its products, services, and brands in consumers' minds.

Question 64

Effectively catering to the distinct needs of consumers by offering them clearly differentiated products involves much higher research, production, advertising, and distribution costs.

Question 65

Procter and Gamble (P&G), the world's largest maker of consumer goods and advertiser, has been worried about the financial hardship of America's middle class, which it believes will be long lasting. P&G's definition of middle class is households with annual income between $50,000 and $100,000, which amounts to 40% of the country's households.

Question 66

Every segment that can be identified is inherently viable and profitable as a basis for targeted marketing.

Question 67

Personality traits and cultural values are consumer-intrinsic cognitive factors.

Question 68

Culturally distinct segments cannot be prospects for the same product and can only be targeted efficiently with unique promotional appeals for unique products.

Question 69

Social Class is the division of members of a society into a hierarchy of distinct status classes, so that members of each class have relatively the same status and members of all other classes have either higher or lower status.

Question 70

The family life cycle is a classification of the phases most families go through, and each stage represents an important target segment to many marketers.

Question 71

A composite variable that includes marital status, size of family, age of family members (focusing on the age of the oldest or youngest child), and employment status of the head of household classifies the family into a "typical" stage.

Question 72

When it comes to financial investments people who are older and closer to retirement tend to be more cautious.

Question 73

Demographic variables can reveal ongoing trends that signal business opportunities, such as shifts in age and income distribution.

Question 74

Geographic characteristics serve as the core of almost all segmentations.

Question 75

Most marketers prefer to target consumer segments that are relatively stable in terms of demographic and psychological factors and that have needs that are likely to grow larger over time.

Question 76

Consumers in different social classes tend to vary in terms of values, product preferences, and buying habits.

Question 77

Marketers use segmentation research to identify the most appropriate media in which to place advertisements.

Question 78

Targeting is the process of dividing a market into subsets of consumers with common needs or characteristics.

Question 79

RENTAL CAR MINI CASE: Rosetta Car Rental operates car rental lots at airports nationwide. It specifically targets vacationers and advertises in travel magazines and through travel websites with a campaign that emphasizes its quality customer service and well-maintained cars. Rosetta stocks its lots based on a number of factors, including climate and the type of activities it expects its renters to undertake. For example, Rosetta stocks more convertible cars in its warm California lots than in New York. Its Colorado lots stock a large number of station wagons, vans, and SUVs to accommodate skiers and snow-boarders and all their gear.
In the RENTAL CAR MINI CASE, Rosetta exercises ________ when it stocks more convertible cars in California than in New York.

A) demographic segmentation
B) geographic segmentation
C) sociocultural segmentation
D) psychographic segmentation
E) usage-situation segmentation

Question 80

RENTAL CAR MINI CASE: Rosetta Car Rental operates car rental lots at airports nationwide. It specifically targets vacationers and advertises in travel magazines and through travel websites with a campaign that emphasizes its quality customer service and well-maintained cars. Rosetta stocks its lots based on a number of factors, including climate and the type of activities it expects its renters to undertake. For example, Rosetta stocks more convertible cars in its warm California lots than in New York. Its Colorado lots stock a large number of station wagons, vans, and SUVs to accommodate skiers and snow-boarders and all their gear.
In the RENTAL CAR MINI CASE, Rosetta focuses on vacation travelers, as opposed to business travelers. Dividing the market in this way is known as ________.

A) psychographic segmentation
B) geographic segmentation
C) demographic segmentation
D) sociocultural segmentation
E) psychological segmentation