chapter 8 marketing

99. Which target marketing strategy views the market as one big market with no individual segments and thus uses a single marketing mix? a. Undifferentiated b. Concentrated c. Niche d. Uniform e. Multisegmented

A

120. Increasing share of customer means: a. selling more products to each customer b. increasing the number of customers c. winning market share from competitors d. the sales due to a customer relative to the costs of attaining and retaining that customer e. individual customer revenue minus costs to satisfy that customer

A

133. Which of the following is a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds? a. Perceptual mapping b. Product positioning c. Market segmentation d. Product tracing e. Laddering

A

140. The Southern Company is the largest provider of utilities in the southeastern United States. It has also been accused of being the biggest source of industrial air pollution in the area. Southern is trying to change consumers' perceptions of the company by sponsoring a series of television programs on how to preserve our environment. The Southern Company is hoping the programming will lead to: a. repositioning b. reengineering c. demarketing d. undifferentiated targeting e. one-to-one marketing

A

88. All of the following are steps in the market segmenting process EXCEPT: a. determining the objectives of the segmentation strategy b. profiling and analyzing segments c. designing, implementing, and maintaining appropriate marketing mixes d. selecting a market or product category for study e. choosing a basis or bases for segmenting the market

A

89. June LaVista owns a health and fitness gym. After dividing her customers into four segments based on income range, age, level of fitness, and other selected segmentation descriptors, she wrote out a description of each segment's size, expected growth, frequency of exercise, and overall profit potential. Which step in segmenting a market is LaVista engaged in? a. Profiling and analyzing her market segments b. Positioning her products to her market segments c. Targeting promotions to her market segments d. Differentiating her market segments e. Concentrating her marketing mix on the most profitable marketing segments

A

81. Zatarains offers packaged spice mixes for jambalaya, gumbo, and red beans and rice. Consumers can buy the product in the store, so Zatarains sells individual household-size packages to resellers. It also sells institutional-size packages to military bases, schools, restaurants, and other large organizations. The marketers of Zatarains would most likely segment the business market according to: a. company characteristics. b. the buying process. c. financial terms. d. customer relationship objectives. e. length of distribution channel.

A company characteristics

39. 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

A demographic and physchographic

28. 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

A geographic

79. H&R Block launched a $100 million marketing campaign to parlay the company's intimate knowledge of 20 million customers' finances into other services like mortgages and investment advice. Block has great brand recognition, but consumers only care about it four months out of the year. H&R Block is attempting to _____ itself to make people think of it as a company offering services year-round. a. reposition b. reengineer c. demarket d. undifferentiate e. niche

A reposition

53. All of the following are bases for psychographic segmentation EXCEPT: a. benefits b. personality c. motives d. lifestyles e. geodemographics

A. Benefits are not part of psychographic segment.

90. After selecting a market for study and choosing bases for segmenting that market, the marketer must select the segmentation _____, which identify the specific segmentation variables to use a. descriptors b. matrices c. narratives d. variations e. networks

A. descriptors

56. Wine Spectator is a magazine that targets people who appreciate good wine and food. However, the discriminating reader of this magazine is also interested in travel and health, so the magazine features travel and health-related stories. This publication relies on _____ variables to identify its target market. a. psychographic b. demographic c. usage rate d. geodemographic e. family life cycle

A. psychographic

82. Tower Fasteners developed a commanding position in the fastener industry by having in stock over 150,000 different types of fasteners. Tower's primary market is defined as companies with a need for specialized fasteners. All of the following are characteristics of the buying organization that Tower can use for segmentation EXCEPT: a. psychographic variables. b. the method the company uses to make purchases. c. geographic location. d. personal characteristics of buyers themselves. e. company size.

A. psychographic variables -- consumer makrket only

52. _____ segmentation is based on personality, motives, and lifestyles. a. Psychographic b. Demographic c. Benefit d. Family life cycle e. Character

A. psychographic

30. 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

A. Geographic

61. In Baton Rouge, Louisiana, everyone who is anybody in society can't wait to get a copy of 225 magazine. The magazine is targeted to the upper middle and upper classes in Baton Rouge and features articles on how they work and play. The editor of 225 magazine is relying on _____ segmentation. a. geodemographic b. graphic c. benefit d. socioeconomic e. income

A. geodemographic

22. 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

A. responsiveness coupons have different responses

2. 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

ANS: B 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.

24. _____ 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

ANS: B This is the definition of segmentation bases.

25. 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.

ANS: D A segmentation base is the characteristic used to segment the market.

23. 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

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

8. 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

ANS: E The purpose of segmentation is to group similar consumers and to serve their needs with a specialized marketing mix.

105. When a firm uses a concentrated targeting strategy, it can: a. view the total market as receptive to its product. b. offer a highly specialized marketing mix. c. reach customers in two or more segments that might otherwise be missed. d. avoid the danger of putting all resources in one micromarket. e. concentrate on one generalized product to fit the mass market, maximizing sales volume.

B

118. Mirage Resorts in Las Vegas has a system that allows hotel clerks instantaneous access to a client's gambling history to determine what sort of room or complimentary services will provide the guests with the highest level of service. The resort is practicing: a. firewall marketing b. one-to-one marketing c. an application of the 80/20 rule d. transactional marketing e. marketing through technology

B

131. For years, fryer chickens sold in grocery stores were perceived to be a rather generic product--one brand of chicken was much like another. Then Frank Perdue began an advertising campaign to tell consumers that his brand of chicken was more tender, therefore a better choice. Perdue brought _____ to the marketing of fryer chickens. a. perceptual mapping b. product differentiation c. psychographic targeting d. market innovation e. cannibalization

B

134. A(n) _____ could help determine whether or not snacking consumers consider Kashi Tasty Little Crackers healthy and tasty in comparison to other brands. a. predictive model b. perceptual map c. product position d. trend analysis e. internal marketing audit

B

114. Pharmaceutical firms have introduced new over-the-counter antacids that block the production of stomach acids while still marketing traditional antacids. Traditional antacids treat heartburn by neutralizing stomach acid. If sales of the new acid blockers reduce sales of the traditional antacids, then _____ has occurred. a. demarketing b. cannibalization c. undifferentiation d. repositioning e. perceptual confusion

B CANNIBALIZATION

111. With multisegment targeting, a company could benefit from all of the following EXCEPT: a. greater sales volume b. greater product design and management cost c. higher profits d. larger market share e. economies of scale in manufacturing

B GREATER PRODUCT DESIGN AND MGMT COSTS

94. The debate over gay marriages is causing a great deal of furor, but it has done little to deplete the importance of the affluent gay market to businesses. Georgia Pacific and Mitchell Gold, a furniture manufacturer, are two companies that have implemented and maintained marketing mixes designed to meet the needs of lesbians and gays. To these companies and others, lesbians and gays are a desirable: a. market sample. b. target market. c. perceived market. d. functional market. e. market base.

B Target market

10. 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

B does not signal which base should be used

27. _____ 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

B geographic segmentation - region

55. NASCAR racing fans are some of the most diverse and loyal fans in the world. They will stand in the pouring rain, the freezing cold, or the blistering heat for hours to shake the hand and get the autograph of a NASCAR driver. These fans are not concentrated in any one area but are dispersed throughout the United States. A Web site designed to market NASCAR memorabilia would be most likely to be successful if it used _____ segmentation to determine its target market. a. demographic b. psychographic c. geodemographic d. usage rate e. family life cycle

B psychographic = NASCAR fans

. 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 market segment

54. A Small World is a nonprofit retail store that sells gift items made by artisans from over 30 different countries. This store provides employment to craftspeople in developing nations and markets their handiwork at a fair price. The store defines its market segment as people who believe in helping others and who feel good about helping others whenever possible. The store uses _____ segmentation. a. demographic b. psychographic c. geodemographic d. ethnic e. geographic

B psychographic

32. 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.

B. cant control competitive environment

16. 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. gays must be identifiable and measurable

58. The James Hardie Siding Company sells concrete siding. It was having little luck targeting contractors because concrete siding is difficult to install and shows every flaw if a house is incorrectly framed. So Hardie decided to target homeowners who wanted the security of knowing their siding was guaranteed not to rot or crack for 50 years. In terms of psychographic segmentation, the siding company used the _____ variable. a. lifestyles b. motives c. benefits d. demographic e. personality

B. MOTIVES Using appeals to economy, reliability, and dependability targets customers with rational motives. Benefits is not a psychographic segmentation variable

67. Karry-Lite, the manufacturer of light-weight suitcases with wheels, uses as its slogan, "Takes the 'lug' out of luggage." This slogan illustrates the use of _____ segmentation. a. geodemographic b. benefit c. functional d. usage-rate e. feature-based

B. benefit

124. Product positioning is the process of: a. finding the correct location for retail outlets to sell a product category. b. finding the right channel of distribution for a product. c. creating the desired image of the firm's product. d. competing with competitors' products in the retailers' stores for the best position on the shelf. e. pricing the product to be at a competitive level with other brands on the market.

C

135. All of the following are typical bases for positioning EXCEPT: a. attribute b. price and quality c. distribution d. emotion e. product user

C

107. Companies that adopt a concentrated marketing strategy violate which of the following old sayings? a. "You can't bake a pie without breaking some eggs." b. "Don't count your chickens before they hatch." c. "Don't put all your eggs in one basket." d. "The grass is always greener on the other side of the fence." e. "A rolling stone gathers no moss." ANS: C A concentrated targeting strategy focuses on one segment of a market.

C DONT PUT ALL EGGS IN ONE BASKET

59. _____ divides individuals into groups according to the way they spend their time, the importance of items in their surroundings, their beliefs, and socioeconomic characteristics. a. Life cycle segmentation b. Temporal segmentation c. Lifestyle segmentation d. Microsegmentation e. Macrosegmentation

C LIFESTYLE SEG

20. Altria Group, Inc.'s Phillip Morris failed at an 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.

C cigs=responsiveness for safer cig

45. Johnson Publishing Company, the world's largest African American-owned publishing company and home of Ebony magazine, has forged an alliance with Dan River, Inc. to create luxury bed and bath products for the newly developed Ebony Home brand. This brand will use the strong relationship the publisher has with the African American market to sell the brand. What form of demographic segmentation will be used to market the Ebony Home brand? a. Geographic b. Income c. Ethnic d. Benefit e. Lifestyle

C ethnic= demographic

47. Modern Bride is a publication that contains articles and lots of ads for the bride-to-be. Many young women consult this magazine as they plan their special day. The segmentation base used to define the publication's target market is based on _____ variables. a. geodemographic b. geographic c. family life cycle d. lifestyle e. psychographic

C family life cycle

6. 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

C market segmentation

21. 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. ANS: C

C need responsiveness

85. Firms can be categorized by the type of purchasing strategy used. _____ consider numerous, even unfamiliar, suppliers and solicit and analyze options. a. Satisficers b. Strivers c. Optimizers d. Actualizers e. Innovators

C optimizers

12. 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 substantial identifiable/measurable accessible responsive

72. Most airline frequent flyer programs reward the most frequent flyers with business class upgrades and flight lounge privileges. Airlines are using these rewards as a means of implementing _____ segmentation. a. lifestyle b. motive c. usage-rate d. demographic e. personality

C usage rate

75. General Mills offers a deal where its cereal users can collect box tops and submit them to General Mills to earn money for their children's schools. This program, called the Box Tops for Education Program, is a means of changing light users into heavier users. In other words, it is a form of _____ segmentation. a. lifestyle b. motive c. usage-rate d. demographic e. personality

C usage rate

1. 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

C market

87. What is the first step in segmenting a market? a. Set the segmentation goals b. Choose a basis or bases for segmenting the market c. Select a market or product category for study d. Profile and analyze segments e. Select target markets

C.

11. All of the following are criteria for successful market segmentation EXCEPT: a. substantiality b. identifiability and measurability c. accountability d. accessibility e. responsiveness

C. accountatbility

80. Business marketers focus on all of the following market segments EXCEPT: a. institutions. b. producers. c. households. d. resellers. e. government.

C. business markets dont focus on households

38. 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

C. age gen y

17. 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. assessibility able to reach sements

66. ThermaCare air-activated heat wraps are meant to be wrapped around sore muscles and joints. The product is advertised as a powerful pain reliever and a source of deep muscle relaxation. Its soothing warmth can work at night while you sleep to restore your body. The manufacturer of ThermaCare heat wraps is using _____ segmentation. a. geodemographic b. functional c. benefit d. socioeconomic e. feature-based

C. benifit

100. Candace Popwell makes and markets Festive Holiday Truffles candy. The confectionary company owner views the world as one big market with no individual segments and tries to reach it with only one marketing mix. Her essentially mass-market philosophy indicates she probably uses a(n) _____ strategy. a. multisegment targeting b. universal product c. concentrated targeting d. undifferentiated targeting e. product differentiation

D

113. _____ is one of the potential disadvantages associated with a multisegment strategy. a. Inadequate demand b. Demarketing c. Lower profits d. Cannibalization e. Loss of synergy

D

115. When Procter & Gamble (P&G) introduced Liquid Tide to a new segment, consumers in the traditional powdered detergent segment switched to the liquid product. Rather than real sales growth, P&G simply experienced the shifting of existing customers to a new product. This exemplifies a drawback of multisegment targeting strategy called: a. demarketing b. selective perception c. undifferentiation d. cannibalization e. market repositioning

D

132. When the Sara Lee Bakery Group introduced Iron Kids Crustless bread (to save mothers the time and effort of slicing the crusts off sandwiches), it was using: a. PRIZM segmentation b. geodemographic segmentation c. niche marketing strategy execution d. product differentiation e. a target market chart

D

136. In 2008, Apple, Inc. introduced Mobile Me, which keeps everything on a consumer's Mac, PC, iPod, or iPhone on an online server Apple calls the "Cloud" so that it can be accessed at any time. Apple is catering to on-the-go consumers who use multiple platforms. This positioning strategy is based on the: a. product class b. price and quality c. use or application d. product user e. competitor

D

141. To be successful, most businesses focus on customer service. However, the cable industry has a history of poor customer service. Cable companies are facing competition for television customers who once had no choice but cable if they wanted to see more than local programs. In the face of this competition from direct broadcast satellites, cable companies are trying to use a _____ strategy to show that they have become customer oriented. a. segmentation b. product differentiation c. targeting d. repositioning e. demarketing

D

109. Piper Corporation makes aircrafts. It produces several different planes for three categories of customer: Professional, Personal, and Trainer. What type of targeting strategy is Piper using? a. Demand positioning b. Concentrated c. Undifferentiated d. Multisegment e. Market differentiation

D MULTISEGMENT

110. Stouffer's offers gourmet entrees for one segment of the frozen dinner market and Lean Cuisine for another segment that wants both good taste and low calories. When Stouffer's chose to serve two well-defined market segments and develop distinct marketing mixes for each, it was implementing a(n) _____ strategy. a. market integration b. concentrated targeting c. undifferentiated targeting d. multisegment targeting e. heterogeneous positioning

D MULTISEGMENT

95. Sure Fit, Inc. has begun a rebranding strategy to let customers know it no longer only produces slipcovers but now also carries a line of rugs, window treatments, and bedding. Its _____ is described as women with average annual household income of $60,000 or more. a. market audience b. market differentiation c. perceived market d. target market e. aggregated market

D TARGET MARKET

50. Evenflo makes baby gates to keep toddlers away from stairs. What demographic segmentation variable will Evenflo use to identify its target market? a. Gender b. Benefit c. Usage rate d. Family life cycle e. Ethnic

D family life cycle

86. The Green Earth, a landscaping company, finds that the most difficult firms to get business from are the _____, because this group considers numerous and even unfamiliar suppliers, solicits bids, and carefully analyzes options; therefore, it requires a higher levels of customer service. a. actualizers b. strivers c. satisficers d. optimizers e. early adopters

D optimizers

18. Many children on the autism spectrum like to chew on clothing, paper, or anything that they can find. Kid Companions manufactures nontoxic, plastic chewable jewelry for kids to wear. The product is a great way to keep kids from chewing on their clothes, while letting them work through their chewing tendencies. However, the company is unsure how to reach parents and therapists with information about their product. This illustrates a segmentation problem with: a. substantiality. b. identifiability and measurability. c. responsiveness. d. accessibility. e. accountability.

D. accessibility

83. Firms can be categorized by the type of purchasing strategy they use. _____ usually contact familiar suppliers and place an order with the first that can meet product and delivery requirements. a. Strugglers b. Actualizers c. Optimizers d. Satisficers e. Experiencers

D. satisficers

13. 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

D. complexity

25. 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.

D. SEGMENT BASE

65. Miller Lite's long-running "Great Taste...Less Filling!" advertising campaign was ranked by Advertising Age magazine as the 8th-best advertising campaign in history. Miller Lite was using _____ segmentation in this ad campaign. a. geographic b. demographics c. psychographics d. benefit e. usage rate

D. benefit

63. Kraft Foods plans to tailor different ads for different neighborhoods in the same region. For example, viewers watching a cable show in a Hispanic neighborhood in Chicago would see different ads during the same commercial breaks as non-Hispanics living in a different neighborhood. Kraft's strategy best exemplifies _____ segmentation. a. sociocultural b. lifestyle c. cluster benefit d. geodemographic e. systematic geographic

D. geodemographic

92. Market segmentation: a. is a scientific technique for selecting ways to attract specific population samples b. is rarely done by consumer products companies c. only needs to be done once for each product d. should be redone periodically e. should be done every time a product enters a new stage of its life cycle

D. periodically

122. All of the following have been identified as trends that will lead to the continuing growth of one-to-one marketing EXCEPT: a. the growing number of customers who do not have time to spend shopping. b. the fact that consumers do not want to be treated like the masses. c. technology that allows the collection of detailed information on customers. d. consumers are loyal to companies and brands that have earned their loyalty and reinforce it at every purchase occasion. e. mass marketing is no longer appropriate, especially for consumer packaged-goods products.

E

138. The advertisements for Kay Jewelers usually show a man presenting a woman with a ring or necklace and receiving a kiss in return. The ad then shows the slogan "Every Kiss Begins with Kay." This is an example of _____ positioning. a. product class b. price and quality c. use or application d. attribute e. emotion

E

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

102. All of the following are advantages of using a concentrated targeting strategy EXCEPT: a. concentration of resources b. can better meet the needs of a narrowly defined segment c. allows some small firms to better compete with larger firms d. strong positioning e. cannibalization

E CANNIBALIZATION

104. Tall Paul's designs and sells household furniture and furnishings to people who are over 6'6" tall--a rather small target market. Tall Paul's uses a(n) _____ targeting strategy. a. benefit b. undifferentiated c. multisegment marketing d. universal product code e. concentrated

E CONCENTRATED

84. Hank operates a plumbing and electrical supply store. He has categorized its business customers by their purchasing strategy. Hank has found it much easier to serve and satisfy the _____, who usually recontact familiar suppliers and place an order immediately if product and delivery requirements are acceptable. a. adopters b. adapters c. optimizers d. innovators e. satisficers

E satisficers

73. The public transportation system in the San Francisco area conducted a survey that revealed respondents could be assigned to one of four categories: (1) people who never utilized mass transit, (2) people who utilized mass transit in the past but not now, (3) people who utilized mass transit occasionally, and (4) people who utilized mass transit regularly. These groups have significantly different perceptions about transportation alternatives. This is an example of _____ segmentation. a. demographic b. benefit c. aggregate d. economic e. usage-rate

E usage rate

74. ThinkGeek is an online retailer that caters to computer enthusiasts and other "geeky" social groups. Their merchandise includes clothing, electronic and scientific gadgets, unusual computer peripherals, office toys, pet toys, child toys, and caffeinated drinks and candy. ThinkGeek runs a points-for-reward system called Geek Points, under which customers can earn rewards for buying more products. This is an example of segmentation by: a. demographic. b. benefit. c. aggregate. d. economics. e. usage rate.

E usage rate

7. _____ 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

E market segmentation

69. When asked to name a brand of sports drink, most people will answer Gatorade, and some will respond with POWERade. But people with diabetes who still need to replenish electrolytes lost during activity or illness cannot drink these sports drinks because they are high in sugar and thus cannot be consumed by diabetics. As a result, a manufacturer has developed Champion Lyte, which contains no sugar. The manufacturer of Champion Lyte has used _____ segmentation to identify its market. a. geodemographic b. usage-rate c. demographic d. psychographic e. benefit

E. benefit

70. Many people find it difficult to peel hard-boiled eggs. Eggies is a kitchen gadget designed to help make cooking hard boiled eggs quicker and easier. The product allows customers to hard-boil eggs without the shell. Consumers simply crack an egg, pour it into the plastic "Eggie," boil, then twist to enjoy hard-boiled eggs without the messy peeling of the eggshell after they're done. Eggies is using _____ segmentation. a. usage-rate b. demographic c. geodemographic d. competitive e. benefit

E. benefit

68. There are many furniture manufacturers. Tall Paul's is the only one that makes furniture to meet the needs of people who are over 6'6" tall. These people find furniture designed for average-sized people to be cramped and uncomfortable. Tall Paul's uses _____ segmentation. a. geodemographic b. usage-rate c. demographic d. psychographic e. benefit

E. benefit

29. 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

E. Geographic

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

E. Sustainability -- segments must be large enough to warrant a separte marketing mix

62. Which of the following statements best describes the reason marketers find geodemographic segmentation so effective? a. "A bird in the hand is worth two in the bush." b. "Every action has an opposite and equal reaction." c. "A rifle is more exact than a shotgun." d. "Don't put all of your eggs in one basket." e. "Birds of a feather flock together."

E. birds of a feather flock together

15. The marketing researcher for Bubastis Cat Treats has noticed a growing number of cat owners purchasing organic treats for their pets. The researcher thinks there is a market for organic cat treats, but she'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

b

23. 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. responsiveness= mothers health clubs

19. 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

e. responsiveness=responses differ

57. Magazines like Martha Stewart Living, Better Homes & Gardens, and other magazines targeted to people who are interested in improving their personal spaces rely on _____ segmentation. a. psychographic b. demographic c. usage rate d. geodemographic e. family life cycle

psychographic