Deck 5: Customers, Segmentation, and Target Marketing

Question 1

Advances in supply chain management now allow companies to customize products to meet the needs of individual customers on a mass scale. This individualized approach to market segmentation is called:

A) individualization.
B) one-to-one marketing.
C) mass customization.
D) customized marketing.
E) permission marketing.

Answer 1

C

Question 2

A common tool ​used in permission marketing is the opt-in email approach.

Answer 2

True

Question 3

Firms that sell luxury products, custom-made products, and services often take the time to significantly modify their products in an effort to precisely match the needs of individual customers. These firms are pursuing what type of approach to market segmentation?

A) individualized marketing
B) niche marketing
C) pinpointed marketing
D) focused marketing
E) one-to-one marketing

Answer 3

E

Question 4

What is a big difference between the marketing of today versus marketing products 50 years ago?

A) ​Very few marketing strategies were developed and implemented 50 years ago.
B) ​Today's marketers can more precisely define and understand consumer needs.
C) Marketing programs are much less expensive today than they were 50 years ago.
D) ​Marketers of 50 years ago could not engage in market segmentation.
E) ​Marketing was more accepted in organizations 50 years ago than today.

Question 5

The two key issues for marketers during the purchase stage are product availability and form utility.

Question 6

The main advantage of __________ is specialization, as it allows the firm to focus its resources toward understanding and serving a single segment.

A) focused marketing
B) unidimensional marketing
C) mass marketing
D) multisegment marketing
E) market concentration

Question 7

Institutional markets buy raw materials for use in producing finished goods.

Question 8

From the viewpoint of the consumer buying process, what is the difference between a need and a want?

A) Needs are absolute necessities, whereas wants are discretionary.
B) Needs are related to specific products, whereas wants occur only when the consumer has the ability to purchase the product.
C) Needs are based on discrepancies between actual and desired satisfaction, whereas wants occur relative to specific products that can fulfill a need.
D) Needs focus on specific elements of a product's quality, whereas wants are related to the "extras" that add value to the product.
E) Needs and wants are essentially the same, except that consumers will pay more for products they need.

Question 9

__________ is/are the primary reason why the consumer buying process varies across customers, products, and situations.

A) Individual influences
B) Situational influences
C) The cost of the product
D) Social influences
E) The complexity of the purchase

Question 10

Consumers are more likely to be impacted by social influences than are businesses.

Question 11

When your sister expresses her desire for a car, you know that her real need is transportation.

Question 12

Which of the following is ​a type of individualized segmentation?

A) ​Differentiated marketing
B) ​Niche marketing
C) ​Mass marketing
D) ​Permission marketing
E) ​Multisegment marketing

Question 13

The concept of reciprocity is a significant factor in the consumer buying decision process.​

Question 14

Firms engage in __________ when their intimate knowledge and expertise in one market allows them to offer customized marketing programs that not only deliver needed products but also provide needed solutions to customers' problems.

A) single segment targeting
B) market specialization
C) selective targeting
D) product specialization
E) mass market targeting

Question 15

The evoked set is a key part of the purchase stage of the consumer buying decision process.

Question 16

Ethnography is a qualitative research technique designed to understand cultural phenomena such as communication, shared meanings, and personal interests.

Question 17

Little ​Gym focuses on highly customized workout experiences for children between the ages of 4 months and 12 years. This is an example of niche marketing.

Question 18

When the product's performance falls short of the customer's expectations, the customer experiences cognitive dissonance.​

Question 19

Firms focused on a single market segment use which of the following approaches? ​

A) ​multisegment approach
B) ​permission marketing approach
C) ​mass customization approach
D) ​homogenous marketing approach
E) ​market concentration approach

Question 20

After enrolling in the MBA program at Minor State University, Sheri began having second thoughts. Although MSU seemed to be a good choice based on location, reputation, and price, Sheri was not convinced she had made the right choice. Sheri is suffering from:

A) too many opportunity costs.
B) dissatisfaction.
C) choice insufficiency.
D) cognitive dissonance.
E) poor product quality.

Question 21

One of the most successful and well-known tools of __________ segmentation is VALS^™ developed by Strategic Business Insights.

A) psychographic
B) geographic
C) demographic
D) geoclustering
E) emotional

Question 22

Each of the following statements describes a unique characteristic of the business buying process EXCEPT:

A) Business buyers have an easier time identifying their needs as compared to consumers.
B) Business buyers must be keenly aware of both hard and soft costs.
C) Groups of people, rather than individuals, often make purchase decisions.
D) Business buyers are less likely to be dependent upon each other.
E) Business buying is sometimes based on reciprocity where each firm buys products from the other.

Question 23

What must a firm have to use selective targeting successfully? ​

A) ​The ability to develop multiple marketing programs to serve all customers simulataneously
B) ​Expertise of a product category to leverage across many different market segments
C) ​Capabilities that are intrinsically tied to the needs of a specific target market
D) ​Multiple capabilities in many different product categories
E) ​Intimate knowledge and expertise in one market that allows it to offer customized marketing programs

Question 24

Which of the following IS NOT a typical basis used to segment business markets?

A) type of organization
B) organizational characteristics
C) benefits sought
D) organizational culture
E) relationship intensity

Question 25

Only the largest firms can execute __________, which involves the development of multiple marketing programs to serve all customer segments simultaneously.

A) single segment targeting
B) market specialization
C) selective targeting
D) product specialization
E) mass market targeting

Question 26

The consumer buying process begins when:

A) marketing research discovers a new, untapped market segment.
B) consumers recognize that they have unsatisfied needs.
C) merchants offer goods and services for sale.
D) a manufacturer develops a new product.
E) consumers begin to seek information about an upcoming purchase.

Question 27

Although the stages of the consumer buying process are typically discussed in a linear fashion, consumers do not always follow the stages in sequence. Explain why this often occurs.

Question 28

Which of the following IS NOT an example of mass customization?

A) A college creates a custom degree program to match your unique needs.
B) A customer orders a custom teddy bear from Build-A-BearWorkshop.com.
C) Dell offers fully customized computers based on your needed configuration.
D) A bank employee logs into the e-procurement system to browse a fully customized catalog of office supplies.
E) You order a customized vase of flowers from 1-800-Flowers.com.

Question 29

Nielsen's PRIZM segmentation system is a useful ___________ tool.

A) ​geoclustering
B) ​business segmentation
C) ​mass marketing
D) ​psychographic segmentation
E) ​behavioral segmentation

Question 30

The basic assumption of __________ is that all customers in the market have similar needs and wants that can be reasonably satisfied with a single marketing program.

A) holistic marketing
B) mass marketing
C) market concentration
D) focused marketing
E) single segment marketing

Question 31

__________ segmentation is the most powerful form of segmentation in consumer markets because it uses actual product usage to make distinctions among market segments.

A) Demographic
B) Behavioral
C) Psychographic
D) Lifestyle
E) Geographic

Question 32

A market segment meets all criteria for viability. However, what else is necessary for a firm to successfully pursue that segment?

A) The segment should allow for little competition.
B) The segment should be inexpensive to reach.
C) The segment should have synergy with the firm's mission.
D) The segment is easy to reach with traditional forms of communication.
E) The segment's members cannot overlap into other segments.

Question 33

If a researcher were to ask consumers to quickly name the top 3 brands of computers they might consider purchasing, the most common brands in the __________ would most likely be Dell, Apple, and HP.

A) brand set
B) purchase set
C) evoked set
D) target group
E) shopping list

Question 34

Explain the five different target marketing strategies and give examples of firms that use each one. Also, discuss how firms might approach the targeting of noncustomers

Question 35

Identify and explain the five stages of the consumer buying process. Give examples of marketing activities designed to influence each stage.

Question 36

With respect to the consumer buying process, __________ is perhaps the most important factor that affects the time, effort, and expense dedicated to the search for information.

A) the degree of risk
B) the consumer's expertise
C) the consumer's brand loyalty
D) the degree of competition
E) the extent of product differentiation

Question 37

Identify and discuss the various traditional market segmentation strategies. Include in your answer a discussion of the relative advantages and disadvantages of each strategy.

Question 38

Describe how the business buying process differs from the consumer buying process. Include an explanation of the unique characteristics of business markets.

Question 39

What is the key to using behavioral segmentation successfully in consumer markets?

A) The firm must clearly link behavioral characteristics with risk profiles.
B) The firm must clearly link behavioral characteristics to demographic characteristics.
C) The firm must determine whether consumers see their behaviors as being distinct from other behavioral segments.
D) The firm must clearly link behavioral information with geography.
E) The firm must clearly understand the basic needs and benefits sought by different consumer groups.

Question 40

What type of segmentation divides consumer markets into segments using individual factors such as gender, age, income, and education?

A) psychographic segmentation
B) demographic segmentation
C) benefit segmentation
D) behavioral segmentation
E) lifestyle segmentation