chapter 8 mc

120. If a marketing researcher saw such names (categories) Blue Blood Estates, Winner's Circle, Hometown Retired, or Shotguns and Pickups when doing segmentation research, the marketing researcher would most likely be dealing with ________ clusters.

PRIZM

117. One marketing commentator said, "The idea is not to sell something, but to demonstrate how a brand can enrich a customer's life." Which of the following forms of marketing was the commentator describing?

a. Experiential marketing

25. In 2003, 4.1 million Americans turned 21. An interesting fact is that the share of college students who plan to move back home after graduation is ________.

60%

119. Home furnishing retailer Bed Bath & Beyond's ability to cater to local tastes has fueled its phenomenal growth. Bed Bath & Beyond's managers pick ________ of their own merchandise, and this local focus has helped the chain evolve from one that began selling little more than bed linens to the "beyond" part—products ranging from picture frames and pot holders to imported olive oil and designer door mats.

70%

51. Which of the following best represents the chief advantage of pursuing a multisegment strategy?

b. It diversifies the firm's risk.

116. The recipe for Internet niching success is to ________.

b. choose a hard-to-find product that customers do not need to see and touch

43. If your marketing department established a priority in reaching solution-oriented customers (e.g., those that want value through more benefits and advice), ________ would be the best means for connecting with these customers.

b. consultative selling

22. Which of the following American Generations is characterized as being great acquisitors and are value- and cause-driven despite indulgences and hedonism?

baby boomers

15. Two broad groups of variables are used to segment consumer markets. One method uses descriptive characteristics such as geography. The other method is to form segments by looking at ________ considerations.

behavioral

19. PRIZM (Potential Rating Index by Zip Markets) identifies clusters of consumers based on a variety of characteristics such as education and affluence. Which of the following clusters would match to a consumer group that is characterized as being in their late forties and fifties, college-educated, upper-middle-class homeowners that married late and are still raising children in comfortable suburban subdivisions and are still pursuing kid-centered lifestyles.

beltway boomers

127. A purchasing manager has decided to take a "purchasing approach" to segmenting a proposed business market. All of the following would be potential means (sub-segments) for segmenting under the "purchasing approach" EXCEPT ________.

specific application

33. If a buyer is loyal to two or three different brands of soap, this buyer's loyalty status can be described as being among the ________.

split loyals

34. A company can learn a great deal by analyzing the degrees of brand loyalty. For example, by studying the ________ the company can pinpoint which brands are most competitive with its own.

split loyals

50. When a symphony orchestra targets people who have broad cultural interests, rather than only those who regularly attend concerts, the orchestra is targeting what are called ________.

supersegments

27. According to the VALS 8-part typology segmentation system, ________ are considered to be elderly, passive people who are concerned about change. They are loyal to their favorite brands.

survivors

35. All of the following have been designated as groups that might be found using attitude as the primary segmentation variable EXCEPT ________.

synergistic

32. If a market is segmented according to light, medium, and heavy product users, the marketer segmenting this market is using the ________ as the means to segment.

usage rate

60. Not all attempts to target children, minorities, or other special segments draw criticism. Which of the following is the best illustration of a company (or industry) that seems to be marketing to the above in a correct and ethical way?

c. Colgate-Palmolive's Colgate Junior toothpaste.

126. Users of a brand can be segmented into several groups based on the strength of commitment to the brand. If a brand manager is seeking to identify those users who are most likely to defect to another brand, he or she should look for users that are labeled as being ________.

convertible

36. A snack chip manufacturer is concerned about consumers leaving its brand and going to competitive alternatives. Which of the following groups (based on strength of commitment) would be most likely to leave the company's offering and go somewhere else for snack products?

convertible

14. ________ combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product service offering of their choice.

customerization

123. Which of the following statements accurately describes what demographers are calling the "boom-boom effect"?

d. Products that appeal to 20-somethings also appeal to baby boomers.

44. During which step of the segmentation process would the marketer group customers into segments based on similar needs and benefits sought by the customer in solving a particular consumption problem?

d. Step 1—needs-based segmentation

115. Enterprise Rent-A-Car has challenged Hertz's supremacy in the rental car market by tailoring its marketing program to a relatively neglected target market. Which of the following would be the most accurate description of that market?

d. The low-budget, insurance-replacement market.

18. A marketing manager is considering several options to market to market segments identified as being either culture-oriented, sports-oriented, or outdoor-oriented. This manager has selected the ________ format for segmenting markets.

d. psychographic lifestyle

45. If an organization's marketing department wished to create "segment storyboards" to test the attractiveness of each segment's positioning strategy, this action would most likely occur in the ________ step of the segmentation process.

d. segment "acid test"

9. A niche is characterized as being all of the following EXCEPT ________.

d. the customers generally have smaller amounts of income

38. If a marketer is seeking to segment a business market, which of the following variables is generally felt to be important enough by marketers to place it first among the list of other variables that can be used in segmentation process?

demographic

129. As a brand manager you have decided to use the full market coverage approach in marketing to your customers. Within the full market coverage approach, you have selected a(n) ________ strategy whereby your firm will operate in several market segments and design different products for each segment.

differentiated

55. In ________ marketing, the firm operates in several market segments and designs different products for each segment.

diiferentiatied

113. The marketer ________ the segments; the marketer's task is to identify the segments and decide which one(s) to target.

does not create

12. According to thoughts expressed by Pine and Gilmore about a new economic era that is rapidly approaching, if you charge for the time customers spend with you, then and only then are you in the ________ business.

experience

5. A ________ consists of two parts: a naked solution and discretionary options.

flexible market offering

30. Mobil identified five different benefit segments for which products and services could be designed. ________ (27 percent of the market) shops Mobil outlets for fast fuel, fast service, and fast food.

generation F

121. The Scion by Toyota has a hip look and feel—and an industrial strength stereo—and is sold in chrome and black showrooms tucked inside Toyota dealerships. According to Toyota, to which of the following audiences is the Scion positioned?

generation Y

124. If a marketing manager employs such marketing techniques as online buzz, student ambassadors, cool events, and street teams to reach target markets, the manager is most likely appealing to the ________ market.

generation Y

16. If a marketer decides that segmenting a market based on neighborhoods, the marketer will have chosen the ________ method of segmentation.

geographic

10. Which of the following has greatly facilitated niche marketing?

globalization

11. When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats?

grassroots marketing

6. If a marketing manager observes that his or her market shows no natural segments and consumers seem to have roughly the same preferences, the marketing manager will most likely be faced with a ________ preferences pattern.

homogeneous

122. Increasingly, companies are finding that their markets are ________ as middle-market Americans migrate toward more premium products.

hourglass-shaped

28. A housewife requests a new treadmill for her birthday. With respect to consumer decision roles, which role is the housewife currently playing?

initatior

26. According to the VALS 8-part typology segmentation system, ________ are successful, sophisticated, active, "take-charge" people with high self-esteem. Their purchases often reflect cultivated tastes for relatively upscale, niche-oriented products and services.

innovators

20. Jose and Erika have just divorced. This will obviously not only have an impact on their personal lives but their consumptive lives as well. Which of the following demographic segmentation subsegment formats might be used by marketers to reach Jose or Erika?

life stage

111. According one expert from J. Walter Thompson's Mature Marketing Group, "everyone over 45 is lumped into a category called old." However, the expert points out that this strategy is faulty. Seniors, particularly boomers-turned-seniors, often make buying decisions based on ________.

lifestye

125. A hardware store has decided to use the VALS segmentation system to target consumers. The store is particularly interested in reaching people who are characterized by the VALS system as being practical, down-to-earth, and self-sufficient who like to work with their hands. Which of the following VALS categories most likely matches to the hardware store's segment of interest?

makers

17. According to established methods of segmenting markets, all of the following would an appropriate segment category if the family life cycle was the segmentation base ACCEPT ________.

male, female

59. One way to discover new market segments is to investigate the hierarchy of attributes consumers examine in choosing a brand if they use phased decision strategies. This process is called ________.

market partioning

4. A ________ consists of a group of customers who share a similar set of needs and wants.

market segment

31. With respect to user status (a segmentation possibility), ________ tend to focus on attracting potential users because they have the most to gain.

market share leaders

53. With ________ as a target market strategy, the firm concentrates on serving many needs of a particular customer group.

market specialization

2. In ________ marketing, the seller engages in the mass production, mass distribution, and mass promotion of one product for all buyers.

mass

3. The argument for ________ marketing is that it creates the largest potential market, which leads to the lowest costs, which in turn can lead to lower prices or higher margins.

mass

112. When Coca-Cola sold only one kind of Coke in a 6.5-ounce bottle, it was practicing what is called ________.

mass marketing

58. ________ is the strategic coordination of economic, psychological, political, and public relations skills, to gain the cooperation of a number of parties in order to enter or operate in a given market.

megamarketing

41. A company can be said to have used ________ if the company distinguished customers buying on the basis of price, service, and quality.

micro-segmentation

29. With respect to occasion segmentation, Christmas, Valentine's Day, and ________ account for just over half of gifters' budgets.

mother's day

114. Anderson and Narus have urged marketers to present flexible market offerings to all members of a segment. A flexible market offering consists of two parts. Which of those parts contains the product and service elements that all segment members' value?

naked Solution

42. Business buyers seek different bundles based on their stage in the purchase decision process. ________ are customers who are starting their purchasing relationship and they want easy-to-read manuals, hot lines, high levels of training, and knowledgeable sales reps.

novices

24. To reach Generation Y, rock band Foo Fighters created a digital street team that sends targeted e-mail messages to members who "get the latest news, exclusive audio/video sneak previews, tons of chances to win great Foo Fighters prizes, and become part of the Foo Fighters Family. Which of the following techniques for reaching Generation Y are the Foo Fighters using?

online buzz

39. A marketer is interested in segmenting a business market based on technology and customer capabilities. Which of the following major segmentation variables would most likely be used by the marketer to assist with the task?

operating variables

40. A marketer is interested in segmenting a business market on ________ if the marketer intends to eventually segment the market based on loyalty and attitudes toward risk.

personal characteristics

57. All of the following costs are likely to be higher if a marketer pursues a differentiated marketing approach EXCEPT ________.

pricing costs

23. ________ is the science of using psychology and demographics to better understand consumers.

psychographics

Instead of scattering their marketing effort (a "shotgun" approach), many companies are now embracing target marketing where the focus is on those consumers that they have the greatest chance of satisfying (a ________ approach) with their products and services.

rifle

56. The best way to manage multiple segments is to appoint ________ with sufficient authority and responsibility for building the segment's business.

segment managers

128. If your assignment was (for each segment) to create a "value proposition" and product-price positioning strategy based on the segment's unique customer needs and characteristics, you would be in which of the following steps of the segmentation process?

segment positioning

49. All of the following are benefits of following the ________ approach to target market selection: a strong knowledge of the segment's needs, a strong market presence, operating economies through specializing in production, distribution, and promotion.

single-segment concentration

21. Men and women tend to have different attitudinal and behavioral orientations, based partly on genetic makeup and partly on ________.

socialization

130. In the past, most car buyers first decided on the manufacturer and then on one of its car divisions. This type of buying strategy has been labeled as a ________.

a. brand-dominant hierarchy

47. In evaluating different market segments, the firm must look at two factors: the segment's overall attractiveness and ________.

a. company's objectives and resources

8. Marketers usually identify niches by ________.

a. dividing a segment into subsegments

48. Volkswagen concentrates on the small-car market and Porsche on the sports car market. These would be examples of what is called ________.

a. single-segment concentration

54. The two ways that large firms can cover a whole market (e.g., full market coverage strategy) are through ________ and differentiated marketing.

a. undifferentiated

13. Through customer experience management (CEM), brands can create five different types of experiences: sense, feel, think, relate, and ________.

act

46. To be useful, market segments must rate favorably on five key criteria. In the ________ criterion, effective programs can be formulated for attracting and serving the segments.

actionable

37. If a consumer group is designated based on their "balance of disposition," the ________ group can be described as one that is made up of nonusers who are as attracted to a competing brand as they are to their current brands.

ambivalent

118. If you were a marketing manager that was considering implementing the concept of customer experience management (CEM), you would follow all of the following steps EXCEPT ________.

c. designing the segmentation portfolio

52. The chief disadvantage to a firm that decides to follow a product specialization strategy in selecting target markets is that ________.

c. the product may be supplanted by an entirely new technology

7. Procter & Gamble has many soap brands. One reason for this is that soap users tend to group together in terms of preferences such as bleaching action, softness, stain-removal, et cetera. Which of the following preferences pattern would most likely apply to P&G's method of response to market needs?

clustered preferences