Chapter 7
12) The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation. A) behavioral B) psychographic C) age and life cycle D) demographic E) geographic
A) behavioral
55) Most attempts to target children and minority groups provide ________ to target customers. A) benefits B) education C) disadvantages D) harm E) expenses
A) benefits
29) The markets you have chosen to serve in four western states can be effectively reached and served. You would tell the marketing manager that these segments are ________. A) measurable B) accessible C) substantial D) actionable E) profitable
B) accessible
78) When Burger King targets children, teens, adults, and seniors with different ads and media, it is practicing ________ segmentation. A) user status B) age and life-cycle C) psychographic D) behavioral E) lifestyle
B) age and life-cycle
62) Which type of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance? A) services differentiation B) channel differentiation C) people differentiation D) product differentiation E) price differentiation
B) channel differentiation
53) It is considered socially irresponsible when the marketing of adult products spills over into the ________ segment. A) elderly B) child C) animal D) minority E) senior
B) child
36) When New Port Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing. A) undifferentiated B) differentiated C) target D) individual E) niche
B) differentiated
9) When Positive Image, Inc. caters to clothing, cosmetics, and toiletries markets, it most likely uses which type of segmentation? A) readiness B) gender C) behavior D) occasions E) geographic
B) gender
56) In target marketing, the issue of social responsibility is not really who is targeted, but rather ________ and for ________. A) why; what B) how; what C) why; how long D) where; how long E) how; how long
B) how; what
92) Ford Motor Company emphasizes "Quality FirstFord Tough" in its truck products. In doing so, the company has developed a differentiation strategy based on ________. A) people B) image C) products D) services E) positioning
B) image
10) Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation? A) gender B) income C) occasion D) usage rate E) readiness stage
B) income
73) When it first opened for business, Home Depot claimed to offer better products at lower prices. This hard-to-sustain value proposition is called ________. A) more-for-the-same B) more-for-less C) more-for-more D) same-for-less E) same-for-more
B) more-for-less
28) You have discovered that the segments you are targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. These segments are ________. A) accessible B) measurable C) reachable D) differentiable E) observable
D) differentiable
65) A brand difference is worth establishing and promoting to the extent that it satisfies all of the criteria below EXCEPT which one? A) important B) distinctive C) divisible D) affordable E) noticeable
C) divisible
69) Which positioning strategy offers consumers a "good deal" by offering equivalent-quality products or services at a lower price? A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) all-or-nothing
C) same-for-less
26) When a business market segment is large or profitable enough to serve, it is termed ________. A) measurable B) accessible C) substantial D) actionable E) differentiable
C) substantial
16) Shampoo marketers rate buyers as light, medium, or heavy product users. This is ________ segmentation. A) benefit B) user status C) usage rate D) psychographic E) occasions
C) usage rate
50) When choosing a target marketing strategy, many factors need to be considered. Which of the following does your text NOT mention as important? A) company resources B) degree of product variability C) product life-cycle stage D) product cost E) competitors' marketing strategies
D) product cost
44) As You Like It, Inc. customizes its offers to each individual consumer. This practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________ marketing. A) niche B) mass C) differentiated D) undifferentiated E) micro
E) micro
60) A company or store gains a(n) ________ by differentiating its products and delivering more value. A) competitive advantage B) positioning advantage C) cost advantage D) efficiency advantage E) synergy
A) competitive advantage
18) By studying its less loyal buyers, a company can detect which brands are most ________ its own. A) competitive with B) used with C) overlooked with D) similar to E) complementary to
A) competitive with
43) Which of the segmenting strategies carries higher-than-average risks in consumer markets? A) concentrated B) mass C) differentiated D) undifferentiated E) multiple-segment
A) concentrated
6) Which of the following is the most popular method for segmenting markets? A) demographic B) gender C) psychographic D) behavioral E) geographic
A) demographic
4) Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be ________ segmentation. A) geographic B) benefit C) end-use D) customer E) image
A) geographic
63) When firms use symbols, colors, or characters to convey their personalities, they are using ________ differentiation. A) image B) people C) company D) reputation E) subliminal
A) image
72) Which difficult-to-sustain positioning strategy attempts to deliver the "best-of-both"? A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) more-for-more
B) more-for-less
23) Lexus targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________. A) intermarket segmentation B) loyalty segmentation C) life-cycle segmentation D) targeting segmentation E) psychographic segmentation
A) intermarket segmentation
24) Cross-market segmentation is also known as ________. A) intermarket segmentation B) international segmentation C) regional segmentation D) mass-market segmentation E) micromarketing
A) intermarket segmentation
66) You have just created the "perfect" ad. It communicates the full mix of benefits upon which the brand is differentiated and positioned. This full positioning of the brand is called ________. A) its value proposition B) target marketing C) capturing the consumers' attention D) value profiling E) differentiated marketing
A) its value proposition
75) What is the following an example of? "To busy, mobile professionals who need to always be in the loop, BlackBerry is a wireless connectivity solution that gives you an easier, more reliable way to stay connected to data, people, and resources while on the go." A) positioning statement B) service differentiation C) concentrated segmentation D) competitive advantage E) irresponsible target marketing
A) positioning statement
79) Segmenting voters as either Democrats or Republicans is an example of ________. A) psychographic segmentation B) demographic segmentation C) occasion segmentation D) intermarket segmentation E) A and D
A) psychographic segmentation
83) A catalog retailer has identified African-American professionals between the ages of thirty-five and forty-five as the group of customers within the larger market that is a potential market for its products. The retailer plans to direct its marketing efforts toward this group of consumers. The retailer has identified a ________. A) target market B) marketing mix C) product mix D) mass market E) market aggregation
A) target market
37) Developing a strong position within several segments creates more total sales than ________ marketing across all segments. A) undifferentiated B) differentiated C) niche D) target E) individual
A) undifferentiated
3) Even though several options are available at any one time, there ________ to segment a market. A) is one single best way B) is no single way C) is a most effective way D) are limited ways E) are four ways
B) is no single way
46) Which of the following is the narrowest marketing strategy? A) segmented strategy B) local marketing C) differentiated marketing D) mass marketing E) undifferentiated marketing
B) local marketing
70) "Less-for-much-less" positioning involves meeting consumers' ________. A) quality performance requirements at a lower price B) lower quality requirements in exchange for a lower price C) lower quality requirements at the lowest possible price D) high quality requirements at a discounted rate E) high quality requirements at the lower possible price
B) lower quality requirements in exchange for a lower price
17) Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by ________. A) user status B) loyalty status C) store type D) brand preference E) usage rate
B) loyalty status
94) Neiman Marcus claims superior quality, performance, and style. The owners provide the most upscale products and services and charge a higher price to cover the higher costs. What type of positioning does Neiman Marcus use? A) more-for-the-same B) more-for-more C) repositioning D) the-same-for-less E) more-for-less
B) more-for-more
33) In general, a company should enter only segments in which it can ________ and ________. A) offer lower prices; ship faster B) offer superior value; gain advantages over competitors C) offer superior value; ship faster D) gain advantages over competitors; mass market its products E) offer lower prices; develop customer loyalty
B) offer superior value; gain advantages over competitors
91) The Jay Group hires better employees than the competition by conducting lengthy searches and interviews. Management also trains employees much better than competitors do. The Jay Group has gained a strong competitive advantage through which type of differentiation? A) image B) people C) services D) product E) channel
B) people
8) Marketers must be most careful to guard against which of the following when using age and life-cycle segmentation? A) underestimating B) stereotyping C) traditional marketing D) cultural bias E) gender bias
B) stereotyping
35) The 55-year-old baby boomers share common needs in music and performers. When a music company decides to serve this group, the group is called a(n) ________. A) market segment B) target market C) niche market D) micro market E) undifferentiated market
B) target market
51) When competitors use differentiated or concentrated marketing, ________ marketing can be disastrous. A) differentiated B) undifferentiated C) concentrated D) customized E) localized
B) undifferentiated
84) Jolene Enterprises mass produces an all-purpose floor cleaner, mass distributes it and mass promotes it. This firm uses ________ marketing. A) segmented B) undifferentiated C) nontraditional D) differentiated E) mass customization
B) undifferentiated
85) A marketer focuses on several commonalities among all consumers. This marketer appears to be engaging in ________. A) differentiated marketing B) undifferentiated marketing C) segmented marketing D) concentrated marketing E) mass customization
B) undifferentiated marketing
98) In the scenario, how does Herb segment his market? A) loyalty status B) usage rate C) income D) geographically E) demographically
B) usage rate
97) Which of the following is the most logical reason for P&G offering products that compete with one another on the same supermarket shelves? A) Different people want a greater selection. B) Procter & Gamble has little competition. C) Different people want different mixes of benefits from the products they buy. D) Retailers request it. E) It creates healthy competition.
C) Different people want different mixes of benefits from the products they buy.
21) As in consumer segmentation, many marketers believe that ________ and ________ segmentation provide the best basis for segmenting business markets. A) geographic; demographic B) user status; user loyalty C) benefits; buying behavior D) age and life-cycle; psychographic E) income; usage rate
C) benefits; buying behavior
39) P&G sells six brands of laundry detergent in the United States, each designed for one of six laundry segments P&G has identified. Together, these six brands take 62% of market share. Which of the following is a disadvantage of P&G's differentiated marketing strategy? A) lost sales that would have been made with an undifferentiated marketing strategy across all segments B) lost customer loyalty due to lack of brand loyalty C) increased costs for separate marketing plans for each brand D) other suppliers controlling pricing E) lack of resources to succeed in an attractive segment
C) increased costs for separate marketing plans for each brand
38) ByWay Ventures chose a differentiated marketing strategy. The company had to weigh ________ against ________ when selecting this strategy. A) extra research; costs B) sales analysis; sales C) increased sales; increased costs D) geographic segmentation; demographic segmentation E) attitudes; perceptions
C) increased sales; increased costs
54) Cigarette, beer, and fast-food marketers have generated much controversy in recent years by their attempts to target ________. A) urban professionals B) the elderly C) inner-city minorities D) the poor in foreign markets E) suburban adults
C) inner-city minorities
45) ________ tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores. A) Undifferentiated B) Differentiated marketing C) Niche marketing D) Local marketing E) Individual marketing
D) Local marketing
27) When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________. A) accessible B) measurable C) reachable D) actionable E) differentiable
D) actionable
7) Demographic variables are frequently used in market segmentation because they ________. A) create smaller segments than other methods do B) create more easily reached segments than other methods do C) do not involve stereotypes D) are easy to measure in comparison to many other methods E) involve fewer attributes to consider than other methods do
D) are easy to measure in comparison to many other methods
30) To evaluate the different market segments your company serves, you would look at all of these factors EXCEPT which one? A) segment size B) segment growth C) segment structural attractiveness D) company values E) company resources
D) company values
31) Barney Hopkins has compiled a list of things that make segments more attractive. Which one of the following items should NOT be on the list? A) relative power of buyers B) lack of powerful suppliers to control prices C) few substitute products D) competition with superior resources E) financial resources
D) competition with superior resources
86) Sanguine Services is a small company that practices a marketing strategy in which its limited resources are used to go after a large share of two small niches. Sanguine practices which one of these strategies? A) undifferentiated B) differentiated C) mass D) concentrated E) geographically dispersed
D) concentrated
88) Jay Bee Promotions tailors its advertising and promotional services to the needs and preferences of individual customers. Which of the following terms does NOT apply to this type of marketing? A) one-to-one B) customized C) markets-of-one D) concentrated E) mass customization
D) concentrated
40) Successful niche marketing is most dependent on a firm's ________ and its ________. A) promotions strategy; services B) individual relationships with customers; positioning C) superior products; value network partners D) greater knowledge of customers' needs; special reputation E) competitive advantage in comparison to mass-market companies; affordable pricing
D) greater knowledge of customers' needs; special reputation
81) MTV targets the world's teenagers, who have similar needs and buying behavior even though they are located in different countries. This is called ________ segmentation. A) political and legal B) cross-cultural C) cultural D) intermarket E) individual
D) intermarket
71) Few people can afford the best in everything they buy. At times everyone needs a product with less quality or performance with a correspondingly lower price. In this case a consumer would purchase a product positioned with a ________ strategy. A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) all-or-nothing
D) less-for-much-less
76) When marketers at Procter & Gamble selected the Millennials, a demographic that includes college students, as an untapped group of potential customers for their Febreze line of products, they were executing which step in the process of designing a customer-driven marketing strategy? A) market segmenting B) mass marketing C) differentiation D) targeting E) positioning
D) targeting
64) Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick to it. What does USP stand for? A) unique selling product B) unique services practice C) unique sales pitch D) unique selling proposition E) unique strategic practice
D) unique selling proposition
87) Bob and Phyllis Cords own two retail stores, one in Pottstown and one in Norristown. Though the towns are only 40 miles apart, the consumers at both stores are very different demographically. Bob and Phyllis alter the product offerings between both locations in an effort to cater to both demographic groups. This is an example of ________. A) local marketing B) psychographic segmentation C) mass customization D) demographic segmentation E) A and C
E) A and C
47) Which of the following is NOT a drawback of local marketing? A) It can drive up manufacturing costs. B) It can drive up marketing costs by reducing economies of scale. C) It can create logistics problems. D) A brand's overall image might be diluted through too much variation. E) Supporting technologies are not available.
E) Supporting technologies are not available.
20) Consumer and business marketers use many of the same variables to segment markets. Business marketers use all of the following EXCEPT ________. A) operating characteristics B) purchasing approaches C) situational factors D) personal characteristics E) brand personalities
E) brand personalities
15) Your current assignment at York Foods is to find the major benefits people look for in product classes, the kinds of people who look for each benefit, and the major brands that deliver each benefit. What is this segmentation method called? A) benefit B) behavioral C) age and life cycle D) psychographic E) demographic
A) benefit
25) When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________. A) measurable B) accessible C) substantial D) actionable E) observable
A) measurable
68) What competitive positioning can attack a more-for-more strategy by introducing a brand offering with comparable quality at a lower price? A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) all-or-nothing
A) more-for-the-same
34) Mass marketers, such as Target and Venture Stores, often ignore market segment differences and target the whole market with one offer. What is their approach to segmenting? A) undifferentiated marketing B) differentiated marketing C) target marketing D) concentrated marketing E) micromarketing
A) undifferentiated marketing
14) Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called ________. A) user status B) usage rates C) benefit D) behavior E) loyalty status
A) user status
82) An organic farmer has identified three distinct groups who might be interested in his products: vegetarians, people who are concerned about chemicals in their foods, and people who consider themselves innovators and trendsetters. These three groups are examples of ________. A) marketing mixes B) market segments C) product mixes D) mass markets E) market positions
B) market segments
59) Which of the listed choices is NOT a positioning task? A) identifying a set of possible competitive advantages upon which to build a position B) surveying frequent users of the product C) selecting an overall positioning strategy D) effectively communicating and delivering the chosen position to the market E) selecting the right competitive advantages
B) surveying frequent users of the product
96) Which of the following statements illustrates why stereotypes should be avoided when using age and life-cycle segmentation? A) Old women love to shop; young women love it more! B) Most 10-year-old boys are mischievous. C) Some 70 year olds use wheelchairs; others play tennis. D) The majority of 20 year olds have to work; the same holds true for 30 and 40 year olds. E) both C and D
C) Some 70 year olds use wheelchairs; others play tennis.
32) Which of the following is NOT one of the reasons a segment would be less attractive to a company? A) strong competitors B) substitute products C) concentrated market D) power of buyers E) power of suppliers
C) concentrated market
77) When Pacific Fisheries groups its customers by regions such as Asia, Australia, or New Zealand, it is using which segmenting base? A) economic factors B) political and legal factors C) geographic location D) benefits sought E) demographics
C) geographic location
41) Using concentrated marketing, the marketer goes after a ________ share of ________. A) small; a small market B) small; a large market C) large; one or a few niches D) large; the mass market E) moderate; local
C) large; one or a few niches
48) When Walmart customizes its merchandise store by store to meet shopper needs, it is practicing ________. A) niche marketing B) psychographic marketing C) local marketing D) social segmentation E) individual marketing
C) local marketing
2) What are the four steps, in order, to designing a customer-driven marketing strategy? A) market segmentation, differentiation, positioning, and targeting B) positioning, market segmentation, mass marketing, and targeting C) market segmentation, targeting, differentiation, and positioning D) market alignment, market segmentation, differentiation, and market positioning E) market recognition, market preference, market targeting, and market insistence
C) market segmentation, targeting, differentiation, and positioning
1) When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________. A) adapted marketing B) mass marketing C) market targeting D) segmenting E) differentiation
C) market targeting
49) When a company interacts one-on-one with large numbers of customers to create customer-unique value by designing products and services tailor-made to individual needs, it is following ________. A) micromarketing B) mass marketing C) mass customization D) differentiated marketing E) localization
C) mass customization
19) Many firms make an effort to identify smaller, better-defined target groups by using ________. A) differentiation B) concentrated marketing C) multiple segmentation bases D) positioning E) mass marketing
C) multiple segmentation bases
99) In marketing his writing utensils to his four specialty-shop customers, Herb is using ________ marketing. A) mass B) undifferentiated C) niche D) mass customization E) individual
C) niche
13) Which type of segmentation centers on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item? A) behavioral B) psychographic C) occasion D) impulse E) emergency
C) occasion
42) Today, the low cost of setting up shop ________ makes it even more profitable to serve very small niches. A) in malls in major cities B) in central business districts C) on the Internet D) near major competitors E) far from competitors
C) on the Internet
61) A company or market offer can be differentiated along the lines of product, image, services, channels, or ________. A) labeling B) packaging C) people D) customer service E) reputation
C) people
90) When comparing itself to its competitors, Hidden Valley describes its Ranch dressing as the original. This is the ________ the manufacturer has planned for the product. A) marketing mix B) market segment C) position D) services differentiation E) channel differentiation
C) position
89) There are several different sports watches for cyclists. When compared to its competitors, the Bike Nashbar watch is the least expensive. The Acumen Basic is the only one designed for older cyclists who prefer a larger display. Sports Instrument is the most comfortable of all the available watches. This describes the ________ of the three sports watches. A) marketing mixes B) mass marketing strategies C) positions D) consumer orientations E) selling orientations
C) positions
67) The answer to the customer's question "Why should I buy your brand?" is found in the ________. A) quality image B) customer services C) value proposition D) differentiation E) pricing and promotion structure
C) value proposition
57) Which group determines a product's position relative to competing products? A) manufacturers B) wholesalers C) retailers D) consumers E) suppliers
D) consumers
58) A product's position is based on important attributes as perceived by ________. A) suppliers B) competitors C) market conditions D) consumers E) managers
D) consumers
5) Pendergraff Pet Supplies divides the pet market according to the owners' race, occupation, income, and family life cycle. What type of segmentation does Pendergraff use? A) geographic B) behavioral C) lifestyle D) demographic E) psychographic
D) demographic
22) International Drilling Company segments its foreign markets by their overall level of economic development. This firm segments on what basis? A) political factors B) legal factors C) geographic factors D) economic factors E) cultural factors
D) economic factors
93) Cheap Heaps Auto specializes in lower quality vehicles, with a few dents, that are priced a great deal lower than other used cars. Cheap Heaps has chosen to position its products with a ________ strategy. A) more-for-the same B) more-for-less C) same-for-less D) less-for-much-less E) A or C
D) less-for-much-less
100) If Herb produced a variety of styles of pens and pencils with various wood types and engravings that he tailored specifically to each individual's order, he would be practicing ________. A) concentrated marketing B) local marketing C) undifferentiated marketing D) mass customization E) micromarketing
D) mass customization
74) Which type of statement first indicates the product's membership in a category and then shows its point-of-difference from other members of the category? A) mission statement B) vision statement C) differentiation statement D) positioning statement E) statement of intent
D) positioning statement
95) Superior Auto Sales, a chain of high-end used car dealerships, wants to sum up its company positioning and brand positioning in a formal way. Superior's management would use a ________. A) mission statement B) vision statement C) competitive statement D) positioning statement E) company statement
D) positioning statement
11) Lifestyle characteristics and personality characteristics are two types of variables used in ________ segmentation. A) demographic B) behavioral C) social class D) psychographic E) user status
D) psychographic
52) Target marketing sometimes generates controversy and concern. Issues usually involve the targeting of ________ consumers with ________ products. A) elderly; durable B) young; appealing C) vulnerable; marketing D) vulnerable; potentially harmful E) unexpected; deceptive
D) vulnerable; potentially harmful
80) At one time Miller Beer was known as the "champagne of bottled beer." Unfortunately, Miller drinkers did not drink much beer. To increase sales, Miller was repositioned to attract the members of the middle working class. This segmentation approach is ________. A) user status B) usage rate C) benefit D) behavioral E) psychographic
E) psychographic