Chapter 8

C.) Needs and wants and an ability and willingness to buy (A market is defined as having four imperative characteristics: people or organizations, needs and wants, ability to buy, and willingness to buy.)

A market is people or organizations that have: A.) The ability, willingness, and power to buy B.) A medium of exchange and products they desire C.) Needs and wants and an ability and willingness to buy D.) Unmet needs or wants and products or services that satisfy those unmet needs or wants E.) Communication, financial, and capital resources

C.) Market (This is the definition of a market.)

A _____ is a group of people or organizations that has wants and needs that can be satisfied by particular product categories, has the ability to purchase these products, and is willing to exchange resources for the products. A.) Firm B.) Buyer C.) Market D.) Consumer E.) Target

B.) No, they do not have the ability to purchase at this time. (A market is a group of people or organizations that has wants and needs that can be satisfied by particular product categories, has the ability to purchase these products, and is willing to exchange resources for the products. There is no suggestion of ability to purchase in this case.)

A group of middle school students stop by a bicycle store. The store has just received a new shipment of high-end racing bicycles. The bicycles range in price from $1,200 to $3,000. All of the students want one of these new bikes, but none has the means to buy one. Is this group of consumers a potential market for the expensive bikes? A.) Yes, they are a potential market since they are all about the same age. B.) No, they do not have the ability to purchase at this time. C.) No, to qualify as a market, they must need the product. D.) Yes, they are a market because this product could satisfy their consumer wants and desires. E.) Yes, they are a market because this group shares relatively similar product needs and purchasing characteristics.

E. Responsiveness (Responsiveness is in force when a target segment responds differently (hopefully more positively) to the marketing mix than other segments.)

A health club has a new fitness program for expectant mothers. After flyers were placed at the offices of area obstetricians, classes filled up within two days. Which segmentation success criterion was most influential in the success of this promotion? A.) Substantiality B.) Identifiability C.) Measurability D.) Causality E.) Responsiveness

E.) Geographic (Geographic segmentation includes segmenting markets by climate.)

A manufacturer of blankets knows heavy 100 percent wool blankets sell better in the New England area where the winters are harsh and that lighter-weight blankets sell better in the Southeast market where mild winters require fewer and lighter covers for the bed. Segmenting the market according to climate is an example of _____ segmentation. A.) Psychographic B.) Lifestyle C.) Perceptual D.) Demographic E.) Geographic

D.) Complexity (Complexity is not a criterion.)

A manufacturer of lenses used in microscopes, binoculars, and telescopes has segmented its market into scientific equipment manufacturers, sporting equipment manufacturers, and retailers who sell replacement lenses. In order for this segmentation scheme to be successful, all of the following criteria must be met EXCEPT: A.) Substantiality b.) Accessibility C.) Identifiability and measurability D.) Complexity E.) Responsiveness

C.) Conduct a follow-up analysis to determine if the segments it might choose would respond differently than other segments to its marketing strategy (The only criterion the research firm has not determined is market responsiveness.)

A research firm has conducted marketing research on the market for metal roofing for homes. The research firm has determined there are thousands of homeowners who want the durability provided by metal roofs. These homeowners are generally married and between 25 and 54 years of age. They tend to live in suburban neighborhoods, and most subscribe to lifestyle magazines. If you were interpreting these results, you might suggest that the research firm: A.) Conduct additional research because it has no idea about the measurability of its segments B.) Examine the research report again to see if it can determine segment accessibility C.) Conduct a follow-up analysis to determine if the segments it might choose would respond differently than other segments to its marketing strategy D.) Not segment the concrete siding market because the only market for siding is contractors who build the homes E.) Segment the concrete siding market based on the information provided and concentrate its efforts on suburban homeowners between ages 25 and 54 years who read lifestyle magazines

B.) Market segment (This is the definition of a market segment.)

A(n) _____ is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have similar product needs. A.) Market universe B.) Market segment C.) Aggregated market D.) Segmentation base E.) Population sample

B.) Demographic (A demographic base segments the market. ACT is produced for young children and sold to their parents.)

ACT for kids, an anticavity fluoride rinse, comes in BubbleGum BlowOut flavor. The age-based variable that distinguishes the market for this product is an example of a _____ segmentation. A.) Geographic B.) Demographic C.) Psychographic D.) Benefits E.) Usage rate

E.) Substantiality (Substantiality means segments must be large enough to warrant a separate marketing mix.)

According to the criterion of _____, a selected segment must be large enough to warrant developing and maintaining a special marketing mix. Serving the specific needs of this segment must be commercially viable, even if the number of potential customers is small. A.) Causality B.) Accountability C.) Responsiveness D.) Accessibility E.) Substantiality

C.) Accountability (The four criteria are substantiality, identifiability and measurability, accessibility, and responsiveness.)

All of the following are criteria for successful market segmentation EXCEPT: A.) Substantiality B.) Identifiability and measurability C.) Accountability D.) Accessibility E.) Responsiveness

B.) A regional approach gives marketing managers control over the competitive environment. (The competitive environment is one of the noncontrollable factors in a company's environment.)

All of the following statements are reasons why consumer goods companies take a regional approach to marketing rather than a national approach EXCEPT: A.) Many firms need to find new ways to generate sales because of sluggish and intensely competitive markets. B.) A regional approach gives marketing managers control over the competitive environment. C.) Computerized checkout stations with scanners enable retailers to assess accurately which brands sell the best in each region. D.) Many packaged-goods manufacturers are introducing new regional brands intended to appeal to local preferences. E.) A more regional approach allows consumer goods companies to react more quickly to competition.

A.) Geographic (Geographic segmentation includes segmenting markets by region of the country or world.)

Almost all cell phones sold in the United States are black or gray. Almost all cell phones sold in Europe are colorful, and very few black phones are sold. A cell phone manufacturer knowing this information could use _____ segmentation when selling its phones internationally. A.) Geographic B.) Economic C.) Demographic D.) Benefit E.) Multipositioning

C.) Responsiveness (Responsiveness means that the segment responds to a marketing mix differently than other segments, which does not appear to be the case.)

Altria Group, Inc.'s Phillip Morris failed at another attempt to target Americans looking for a potentially safer cigarette. This market exhibits a lack of: A.) Substantiality B.) Identifiability and measurability C.) Responsiveness D.) Reliability E.) Accessibility

A.) Geographic (Geographic segmentation is the most logical base for segmentation of a product that is used more in one area than another.)

Consumers in Louisiana love hot sauce, and Tabasco and Crystal brands are particularly popular there. Consumers in Michigan do not like hot food, so they purchase very little hot sauce. A national chain of grocery stores would likely use _____ segmentation when stocking condiment merchandise. A.) Geographic B.) Economic C.) Demographic D.) Benefit E.) Geodemographic

C.) Age (Attracting children is a popular strategy for companies that hope to instill early brand loyalty.)

Fisher-Price developed a rugged, waterproof camera for children. This product uses _____ segmentation. A.) Ethnicity B.) Income C.) Age D.) Gender E.) Occupation

C.) Market segmentation (Dividing one large market into divisions based on a variable such as product usage is called market segmentation.)

Ford Motor Company produces passenger cars, commercial trucks and specialty vehicles, performance vehicles, and race cars. Ford uses a procedure called _____ to divide its large market. A.) Micromarketing B.) Positioning C.) Market segmentation D.) Cannibalization E.) Perceptual mapping

E.) Gender (Gender is a demographic variable, but benefit and lifestyle are not.)

H&M plans to open a new store in Saudi Arabia. It will be staffed completely by women. Saudi Arabia has strict laws about women interacting with men other than their husbands, so only women will be permitted to shop there. Which type of demographic segmentation is H&M using? A.) Lifestyle B.) Usage rate C.) Benefit D.) Age E.) Gender

A.) It will enable them to build an accurate description of customer needs by group and to design a marketing mix to fit each segment (The purpose of segmentation is to group similar consumers and to serve their needs with a specialized marketing mix.)

Home Cookin' Catering would like to improve customer satisfaction and increase repeat business. When you ask the owners to describe a typical customer, they say it is impossible and explain that with corporate functions, family affairs, and fund-raisers, they do not have a typical customer. You suggest it is time for market segmentation because: A.) It will enable them to build an accurate description of customer needs by group and to design a marketing mix to fit each segment B.) The company needs to reduce the size of the market it serves C.) The company needs to learn how to group these markets together into one market to serve all of them adequately D.) It will help develop a generalized definition of the market as a whole and reveal the optimal marketing mix for this market E.) This will position the company in the minds of its consumers as compared to its competitors

A.) Responsiveness (Responsiveness is in force when a target segment responds differently (hopefully more positively) to the marketing mix than other segments.)

If a market segment is especially motivated by coupons in newspapers, which segmentation success criterion is most influential in the success of this program? A.) Responsiveness B.) Identifiability and measurability C.) Substantiality D.) Accessibility E.) Functionality

C. Demographic (These are demographic characteristics of consumers.)

Income, ethnic background, gender, and age are all examples of _____ segmentation bases. A.) Geodemographic B.) Organizational C.) Demographic D.) Socioeconomic E.) Psychographic

B.) Identify which variable base should be used for segmenting (Market segmentation itself does not signal which base should be used, but it will define needs and wants, as well as help marketers define marketing objectives, improve resource allocation, and evaluate performance.)

Market segmentation can assist marketers to do all of the following EXCEPT: A.) Develop more precise definitions of customer needs and wants B.) Identify which variable base should be used for segmenting C.) More accurately define marketing objectives D.) Improve resource allocation E.) Evaluate performance

C.) Demographics (Common bases of demographic segmentation are age, gender, income, ethnic background, and family life cycle.)

Marketers use _____ to segment markets because this information is widely available, and factors such as age or gender are often related to consumer purchasing and consumption behavior. A.) Benefits B.) Psychographics C.) Demographics D.) Usage rates E.) Sociocultural attributes

D.) Segmentation base (A segmentation base is the characteristic used to segment the market.)

Military Spouses is the only publication in the world that targets readers who are "married to the military." Its content reflects the unique set of challenges, hardships, and rewards to those whose spouses are in the military. The marital status that has been used to distinguish the market for this magazine is an example of a(n): A.) Market base B.) Selector base C.) Identifier D.) Segmentation base E.) Discriminator base

A.) Demographic (This magazine is using age as a segmentation base, which is characteristic of demographic segmentation.)

Modern Maturity magazine is targeted toward adults age 50 years and older. It has articles on health and fitness as well as the arts and finance. What segmenting base is Modern Maturity using? A.) Demographic B.) Geographic C.) Nomological D.) Economic E.) Generational

C.) Use a single-variable strategy, because it offers an inexpensive alternative that would not require (Though less precise, single-variable segmentation has the advantage of being simpler and easier to use than multiple-variable segmentation.)

Rachel is the owner of a gift shop. She understands the need to segment her market, and available marketing research indicates there is much demand in the community for personalized gifts. She has few resources and cannot engage in intensive consumer research to precisely identify a segment. Which of the following strategies would you suggest she employ? A.) Develop an undifferentiated strategy, because it is not a large community and she could create a single marketing mix that would serve the entire community B.) Employ a macrosegmentation strategy, because the data needed for such a strategy are both easy to get and fit her needs exactly C.) Use a single-variable strategy, because it offers an inexpensive alternative that would not require much experience to employ D.) Use a multiple-variable segmentation strategy, because it is easier to use than single-variable segmentation E.) Conduct a VALS investigation of her buying market

A.) Demographic and psychographic (Thirty-something women indicate demographic segmentation. The juggling act describes her lifestyle, which would represent psychographic segmentation.)

Redbook magazine targets what it calls "Redbook jugglers," defined as 25- to 44-year-old women who must juggle family, husband, and job. According to a Redbook ad, "She's the product of the 'me generation,' the thirty-something woman who balances home, family, and career—more than any generation before her, she refuses to put her pleasures aside. She's old enough to know what she wants. And young enough to get it." This is an example of _____ segmentation. A.) Demographic and psychographic B.) Benefit desired and usage rate C.) Geodemographic and benefit desired D.) Demographic and usage rate E.) Benefit desired and demographic

B.) Expectant moms (A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs, which in this case would be expectant moms.)

The Belly Cast kit by Proud Body helps an expectant mom to make a cast of her pregnant body, decorate it, and keep it for a lifetime. The primary market segment for the Belly Cast kit is: A.) All parents B.) Expectant moms C.) Recently married couples D.) Parents of toddlers E.) Collectors of unusual art

A.) Geographic (Geographic segmentation segments markets by region of the country or world.)

The Coca-Cola Company has over 450 brands in over 195 countries. According to their Web site, their products range from Samurai, an energy drink available in Asia to Vita, an African juice drink. It uses _____ segmentation in this marketing strategy. A.) Geographic B.) Economic C.) Demographic D.) Usage-rate E.) Multipositioning

D.) Accessibility (Segments must be accessible, which may be difficult to achieve with the homeless population.)

The city of Monroe has a literacy program for the homeless but has had a difficult time reaching this group with information about the program, even though radio and television stations have provided public service advertisements free of charge. This illustrates a segmentation problem with: A.) Substantiality B.) Identifiability and measurability C.) responsiveness D.) Accessibility E.) Accountability

B.) Identifiability and measurability (Segments must be identifiable and their size measurable, which might be difficult due to many gay consumers not admitting their lifestyle.)

The marketing manager of Gevalia gourmet coffees wants to target the gay male consumer because he thinks this segment of consumers appreciates and consumes gourmet coffee. Even though gay lifestyles are becoming more accepted socially, the manager is finding it difficult to determine the market potential for this segment because many gay consumers are not willing to admit their lifestyle publicly. Which criterion of a useful segment does this illustrate? A.) Substantiality B.) Identifiability and measurability C.) Complexity D.) Responsiveness E.) Validity

B.) Is large enough to permit a profitable market effort toward its members (Substantiality means the selected segment will be large enough to warrant developing and maintaining a special marketing mix. Serving the specific needs of this segment must be commercially viable, even if the number of potential customers is small.)

The marketing researcher for Pooch Party, a manufacturer of toys for dogs, has noticed an increased trend in pet owners dressing their dogs in clothing. The researcher thinks there is a market for designer clothing for small- and medium-sized dogs, but he's not sure if the segment is substantial. In this case, substantiality means the segment: A.) Has enough special stores, magazines, and other outlets that it will be possible to direct advertisements at this group B.) Is large enough to permit a profitable market effort toward its members C.) Exhibits a response rate to marketing variables different from the rates of other segments D.) Is too large and needs to be reduced to a more easily identifiable and measurable size E.) Will be difficult to develop a product to match this group of buyers

E.) Enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups (The purpose of segmentation is to group similar consumers and to serve their needs with a specialized marketing mix.)

The purpose of market segmentation is to: A.) Reduce the market down to a size the firm can handle B.) Divide the market into equal size and profit regions for sales territories C.) Group a large number of markets together, enabling a company to serve them simultaneously D.) Develop a generalized definition of the market as a whole E.) Enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups

E.) The segment identified by a marketer should differ in how it responds to the marketing mix when compared to another segment confronted with the same mix (The target segment should respond differently to the marketing mix compared to other segments.)

The requirement for a market segment to be responsive means: A.) Over half of the consumers in the identified segment will be actively interested in the product B.) All the segments identified by a marketer should respond to the marketing mix C.) All the segments identified by a marketer should not respond to the marketing mix D.) The segments identified by a marketer should not differ in the level of their responsiveness to the marketing mix E.) The segment identified by a marketer should differ in how it responds to the marketing mix when compared to another segment confronted with the same mix

C.) substantiality, identifiability and measurability, accessibility, and responsiveness (Useful segments should be substantial, identifiable and measurable, accessible, and responsive to different marketing mixes.)

To be useful, a segmentation scheme must produce segments that meet four basic criteria. The criteria are: A.) Segmentability, targetability, reliability and validity, and homogeneity B.) Tangibility, inseparability, nonperishability, and uniqueness C.) substantiality, identifiability and measurability, accessibility, and responsiveness D.) Reliability, flexibility, tangibility, and unbiased E.) Complexity, compatability, relative advantage, trialability, and observability

C.) Accessibility (This describes accessibility.)

Which criterion of useable market segments means the firm must be able to reach members of targeted segments with customized marketing mixes? A.) Substantiality B.) Identifiability and measurability C.) Accessibility D.) Responsiveness E.) Reliability

C.) Age (Vans is segmenting by age--in this case, Generation Y, which consists of people born between 1979 and 1994.)

While most marketing to Generation Y tries so hard to be hip that it borders on parody, Vans has kept the decades-old brand real and vital for Gen Yers. Marketing programs the footwear manufacturer uses to reach Gen Yers include the Vans Skate Parks, which operate in malls around the country; the wildly successful Vans Warped Tour for alternative music; and the Vans Triple Crown, the brand's answer to the X Games. The segmentation plan used by Vans relies heavily on _____ segmentation. A.) Ethnicity B.) Income C.) Age D.) Gender E.) Occupation

B.) Segmentation bases (This is the definition of segmentation bases.)

_____ are characteristics of individuals, groups, or organizations that marketers use to divide a total market into segments. A.) Differentiation guides B.) Segmentation bases C.) Perceptual maps D.) Responsiveness quotients E.) Accessibility quotients

E.) Market segmentation (This is the definition of market segmentation.)

_____ is the process of dividing a market into meaningful groups that are relatively similar and identifiable. A.) Perceptual mapping B.) Positioning C.) Micromarketing D.) Market sampling E.) Market segmentation

B.) Geographic segmentation (This is the definition of geographic segmentation.)

_____ is the segmenting of markets based on the region of the country or the world, market size, market density (number of people within a certain unit of land), or climate. A.) Community segmentation B.) Geographic segmentation C.) Geodemographic segmentation D.) PRIZM segmentation E.) Demonstrated regionalization