Chapter 9: market segmentation, targeting, and positioning

Frequent-flyer programs used by airlines focus on increasing the usage rate, and are an example of ______. Multiple choice question. a. frequency marketing b. cannibalization c. head-to-head positioning d. psychographic segmentation

a

Personality traits, lifestyles, and needs of prospective customers provide the bases for _________ segmentation. Multiple choice question. a. psychographic b. demographic c. behavioral d. sociological

a

What is a variable used in psychographic segmentation? Multiple choice question. a. lifestyle b. awareness c. age d. occupation

a

Manufacturing a product only when there is an order from a customer is known as ______. Multiple choice question. a. segmentation b. build-to-order c. mass customization d. product differentiation

b

Select the item that is NOT a part of the segmenting and targeting process. Multiple choice question. a. developing a market-product grid b. evaluating the marketing mix c. selecting target markets d. taking marketing actions to reach markets

b

Usage rate is a variable used in ______ segmentation. Multiple choice question. a. psychographic b. behavioral c. geographic d. demographic

b

Why is it important for a firm to group its products into meaningful categories? Multiple choice question. a. to make the customer feel like it has many choices b. to make it easy for buyers to relate to the firm's offerings c. to make it seem like the firm offers a wide variety of goods d. to make it easier for firms to know where its sales come from

b

What are two approaches to product positioning? Multiple select question. a. complementary b. differentiation c. face-to-face d. segmentation e. head-to-head

b and e

In a weaker economy, some high-end brands may seek to become more attractive to additional customer segments. One way to do this is to __________ the brand. Multiple choice question. a. identify b. reduce c. reposition d. cheapen

c

When a firm's product is near a competitor's product on a perceptual map, these products have head-to-head positioning, meaning ______. Multiple choice question. a. they operate in smaller, less-competitive niches b. these products are most appropriate for consumers who respond to logical arguments c. they compete on similar attributes in the same target market d. they communicate with their customers via nonverbal methods

c

Mass customization is one of several ________ strategies. Multiple choice question. a. cannibalization b. development c. positioning d.segmentation

d

True or false: It is always a good idea to segment a market. True false question. True False

False

_________ segmentation organizes prospective customers into groups on the basis of where they live or work.

Geographic

Product positioning refers to the place a product occupies in the consumer's______ based on important attributes relative to competitive brands.

Mind

______is the place a product occupies in consumers' minds based on important attributes relative to competitive products. (Enter one word in each blank.)

Product positioning

A business firm should ________ its markets so it can respond more effectively to the needs of its potential buyers, which should result in increased sales and profits. Multiple choice question. a. segment b. combine c. rank d. disregard

a

After a marketer has identified a group with specific needs and benefits, the marketer should then ______. Multiple choice question. a. develop specific marketing actions that will satisfy that groups' particular needs b. assess whether or not the competition is already meeting the groups' needs c. try to increase the size of the group by highlighting the groups' specific need d. attempt to persuade the group to adopt a different set of needs that aligns with the company's product

a

Dell manufactures all the necessary components for its desktops and laptops. It assembles these components into basic computers that can be sold in stores and also assembles products to the exact specifications of customers. Dell is engaged in ______. Multiple choice question. a. mass customization b. diversification c. co-branding d. cannibalization

a

Developing a market-product grid is a step in the ______ process. Multiple choice question. a. segmenting and targeting b. managerial decision c. positioning d. consumer behavior

a

Each market segment consists of people who are relatively similar to each other in terms of ______. Multiple choice question. a. their consumption behavior b. where they buy products c. their geographic location d. how often they buy products

a

John is a supporter of environmental issues. He is constantly examining the "green" credentials of the products he purchases. It may be very effective to reach John with marketing actions based on ________ segmentation. Multiple choice question. a. psychographic b. demographic c. geographic d. ethical

a

Market size and compatibility with the organization's objectives and resources are two of the criteria used to ______. Multiple choice question. a. select target markets b. reposition products c. create market segments d. reach the intended audience

a

Positioning strategy using perceptual maps begins with identifying the most important _________ of the product class to the target customers. Multiple choice question. a. attributes b. market segments c. promotions d. competitors

a

Segmentation based on gender, age, or occupation in would be considered ______ segmentation. Multiple choice question. a. demographic b. psychographic c. geographic d. behavioral

a

The 80/20 rule helps marketers recognize the importance of ______. Multiple choice question. a. heavy users b. affluent customers c. homogeneous markets d. successful promotions

a

The quantity consumed or patronage during a specific period is referred to as ______. Multiple choice question. a. usage rate b. application rate c. customer activity d. customer loyalty

a

The third step of the market segmentation process is to develop a market-product grid and estimate the ___________ of the markets. Multiple choice question. a. size b. demographics c. profitability d. accessibility

a

What is a variable used in psychographic segmentation? Multiple choice question. a. lifestyle b. occupation c. age d. awareness

a

When Macy's promotes and sells different apparel based on the location of its retail stores is it an example of ______ segmentation. Multiple choice question. a. geographic b. strategic c. product d, psychographic

a

When it comes to selecting target markets, the best product cannot be successful, no matter how large the target market is, if that segment is ______. Multiple choice question. a. too expensive or impossible to reach b. too homogeneous c. unsegmented, and no good method exists to segment it d. growing too rapidly

a

Which product is the best example of multiple products directed at two or more distinct market segments? Multiple choice question. a. Crest oral care products b. Muscle and Fitness magazine c. Betty Crocker cake mixes d. Custom-built homes

a

Select all that apply After Zappos.com identified the needs of its target customer segment, what two marketing actions did the company take to fulfill the needs of its target customer? Multiple select question. a. It offered a huge inventory of shoes. b. It offered quick delivery and free returns. c. It started a customer loyalty program. d. It offered the option of returning shoes to its retail stores.

a and b

Select all that apply Which of the following are variables that are typically used in psychographic segmentation? (Check all that apply.) Multiple select question. a. Personality b. Lifestyle c. Race/ethnicity d. Attitudes

a and b

Select all that apply When an organization produces only a single product and attempts to sell it to two or more different market segments, which costs may it incur? Multiple select question. a. Creating a separate promotional campaign b. Developing and producing several versions of the product c. Establishing a new channel of distribution d. Establishing mass customization

a and c

Select all that apply What two questions should you answer affirmatively before you proceed with segmentation? Multiple select question. a. Would segmentation be worth doing? b. Are the potential customers affluent? c. Is the market homogeneous? d. Is segmentation possible?

a and d

Select all that apply Select the variables that are typically used in demographic segmentation. (Select all that apply) Multiple select question. a. income b. marital status c. gender d. lifestyle e. region/city f. usage rate

a, b and c

Select all that apply What are the four bases used to segment consumer markets? Multiple select question. a. geographic b. psychographic c. demographic d. behavioral e. profitability f. social status

a, b, c and d

Select all that apply Select the variables that are typically used in demographic segmentation. (Select all that apply) Multiple select question. a. gender b. usage rate c. marital status d. region/city e. income f. lifestyle

a, c and e

"For upscale American families who desire a carefree driving experience, Volvo is a premium-priced automobile that offers the utmost in safety and dependability," would best be described as a ______. Multiple choice question. a. tag line b. positioning statement c. segmentation slogan d. target market

b

A balance between satisfying a customer's individual wants and achieving ________ benefits a firm's attempts at product differentiation and segmentation. Multiple choice question. a. head-to-head positioning b. organizational synergy c. psychographic segmentation d. cannibalization

b

A business goes to the trouble and expense of segmenting its markets when ______. Multiple choice question. a. its sales are growing sharply b. it expects that it will increase sales and profits c. its customers are dissatisfied d. it has identified a group of affluent customers

b

A firm wants to identify how each of its segments responds to each of its offerings in order to select which market to target. What tool would help the firm accomplish this task? Multiple choice question. a. a SWOT analysis b. a market-product grid c. a positioning statement d. a perceptual map

b

An eyeglass manufacturer produces all of the frames for its reading glasses and then inserts the eyeglass lens based on the different magnification needs of its customers. This is an example of ______. Multiple choice question. a. co-branding b. mass customization c. cannibalization d. differentiation positioning

b

Because more than half of all U.S. households are made up of only one or two persons, Campbell's packages meals with only one or two servings, which is an example of ________ segmentation. Multiple choice question. a. behavioral b. demographic c. psychographic d. loyalty

b

Crest toothpaste markets its fruit flavored toothpaste to children, and its whitening toothpaste to adults. This is an example of ______ segmentation. Multiple choice question. a. behavioral b. demographic c. psychographic d. geographic

b

Differentiation positioning means that ______. Multiple choice question. a. a product competes on similar attributes in the same target market as competitors b. a product is positioned to operate in smaller, less-competitive niches c. marketers communicate with their customers via nonverbal methods d. products are positioned for consumers who desire customization

b

Ford produces many types of vehicles from compact cars to trucks, each with a different type of customer in mind. This is an example of which type of segmentation strategy? Multiple choice question. a. one product and one market b. multiple products and multiple markets c. mass customization d. one product and multiple markets

b

In which of the following ways does the level of competition affect the attractiveness of a market segment? Multiple choice question. a. The level of competition only affects a market segment that is hard to reach. b. The less competition, the more attractive the segment is. c. The less competition, the less attractive the segment is. d. The level of competition has no bearing on the attractiveness of a segment.

b

Product positioning relies on _________ evaluations of a product's important attributes. Multiple choice question. a. competitors' b. consumers' c. marketers' d. changes in

b

Segmentation based on the size of city in which prospective customers live would be considered ______ segmentation. Multiple choice question. a. personality b. geographic c. psychographic d. behavioral

b

The _________ strategy involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products. Multiple choice question. a. market segmentation b. product differentiation c. specialized offering d. perceptual mapping

b

The first step in positioning a product using a perceptual map is to identify ______. Multiple choice question. a. how the product will be repositioned in the minds of customers b. the important attributes of the product c. the promotion that will be used to highlight the product d. the competitors offering the same product

b

The next step after developing a market-product grid and estimating market sizes in the segmentation process is to ________. Multiple choice question. a. group buyers into segments b. select target markets c. take marketing actions d. create a perceptual map

b

The third step of the market segmentation process is to develop a(n) _________ grid and estimate the size of the markets. Multiple choice question. a. perceptual mapping b. market-product c. geographic-demographic d. input-outcome

b

Two specific segmentation strategies are to identify either (1) one product or (2) multiple products that can serve Multiple choice question. a. one market segment. b. multiple market segments. c. all customers. d. a single customer.

b

What analytical tool is used to display, in two dimensions, the locations of products or brands in the consumer's mind? Multiple choice question. a. An ideal position graph b. A perceptual map c. A market grid d. A product graph

b

When McDonald's offers healthy menu items in hopes of avoiding competition with Wendy's and Burger King, it uses ________ positioning. Multiple choice question. a. complementary b. differentiation c. head-to-head d. homogeneous

b

When an organization produces only a single product and attempts to sell it to two or more market segments, it avoids which costs? Multiple choice question. a. Creating a separate promotional campaign b. Developing and producing several versions of the product c. Establishing a new channel of distribution d. Researching the chosen market segments

b

________ refers to the place a product occupies in the consumer's mind on important attributes relative to competitive products. Multiple choice question. a. Target marketing b. Product positioning c. Marketing synergy d. Market segmentation

b

Select all that apply The original target customer for Zappos.com had which two characteristics? Multiple select question. a. customers that value trying on shoes prior to purchase b. customers that value free return policies c. customers who want a large selection of shoes d. customers that need face-to-face help

b and c

Select all that apply In what two ways are markets segmented based on behavioral segmentation? Multiple select question. a. household size b. usage rate c. consumer lifestyle d. product features e. household income

b and d

Select all that apply Which two statements are true of product positioning? Multiple select question. a. Once established, it is permanent. b. It exists in the mind of the consumer. c. It requires consideration of the price of the product. d. It is in relation to competitive products.

b and d

Select all that apply Ideally, a positioning statement should identify which three things? Multiple select question. a. the different ways the product will be advertised b. the product's unique benefits c. the category of the firm that the product belongs to d. the number of competitors offering the same product e. the target market and needs satisfied

b, c and e

Select all that apply What criteria are used to select target markets? (Select all that apply) Multiple select question. a. how many segments the firm has b. expected growth of segment c. cost of reaching the segment d. behavioral characteristics of the segment e. amount of competition for the segment

b, c and e

A market-product grid shows the relationship of market segments either to products offered or to ______. Multiple choice question. a. costs for reaching those segments b. competitor's product offerings c. potential marketing actions by an organization d. important attributes of the brand

c

A marketer has various groups to target but notices that the needs of the various segments aren't very different. What should the marketer do in this instance? Multiple choice question. a. treat each group as unique and market to them differently b. disregard these market segments altogether c. combine the various groups into fewer segments d. continue to look for differences in the needs of the buyers in the segments

c

A product differentiation strategy should achieve which of the following? Multiple choice question. a. It should create a new and improved product with a big enough change to be worth the increased price. b. It should create a new product or brand that is unrecognizable to former customers. c. It should help consumers perceive the product as being different and better than competing ones. d. It should create a product that can be protected by patent.

c

After developing a market-product grid and estimating market sizes, the marketer should select ______. Multiple choice question. a. competitive strategies b. its product groupings c. its target markets d. a marketing budget

c

Demographic, psychographic, and geographic are ______. Multiple choice question. a. quadrants in positioning maps b. tools for estimating market size c. bases to segment consumer markets d. criteria for selecting target markets

c

Grouping products into meaningful categories makes it easier for consumers to relate to them. The most logical grouping in the fast-food industry that buyers would relate to would be ______. Multiple choice question. a. high price, medium price, and low price b. hamburgers, fish, and salads c. breakfast, lunch, dinner, and snacks d. food, drinks, and toys

c

In head-to-head positioning a company positions its product to compete directly against competitor's products, while ________ positioning allows for more indirect competition. Multiple choice question. a. complementary b. segmentation c. differentiation d. face-to-face

c

John is a supporter of environmental issues. He is constantly examining the "green" credentials of the products he purchases. It may be very effective to reach John with marketing actions based on ________ segmentation. Multiple choice question. a. ethical b. demographic c. psychographic d. geographic

c

Mass customization is a step beyond a ________ strategy, because although the latter allows for good choice with quick delivery, it does not allow customers unlimited options for features. Multiple choice question. a. diversification b. cannibalization c. build-to-order d. segments of one

c

Nielsen PRIZM uses ________ segmentation to classify market segments based on the belief that "birds of a feather flock together," with groups living near one another having similar interests and buying similar offerings. Multiple choice question. a. ethical b. sociological c. psychographic d. stereotype

c

Personality traits, lifestyles, and needs of prospective customers provide the bases for _________ segmentation. Multiple choice question. a. demographic b. behavioral c. psychographic d. sociological

c

Potential for increased profit and similarity of needs of potential buyers within a segment are criteria used to ______. Multiple choice question. a. develop a market-product grid b. position a product for a target market c. form market segments d. match a product with a target market

c

Segmenting on the bases of either product features desired by prospective customers or their actual usage rates are examples of _________ segmentation Multiple choice question. a. demographic b. geographic c. behavioral d. psychographic

c

Tailoring goods or services to the tastes of individual customers on a high-volume scale is a segmentation strategy known as ______. Multiple choice question. a. diversification b. product repositioning c. mass customization d. cannibalization

c

The 80/20 rule helps marketers recognize the importance of ______. Multiple choice question. a. successful promotions b. affluent customers c. heavy users d. homogeneous markets

c

The 80/20 rule is a concept suggesting that ______. Multiple choice question. a. 80 percent of new products will be successful while 20 percent will fail b. 80 percent of a target market will respond to a marketing actions, while 20 percent will not c. 80 percent of a firm's sales are obtained from 20 percent of its customers d. 80 percent of the time a customer buys what he or she did last time, and 20 percent of the time he or she switches brands

c

The final step of the segmentation process is to ______. Multiple choice question. a. position all the firm's products b. create a market-product grid with product groupings c. take marketing actions to reach the target markets d. select the appropriate target markets

c

The first step in positioning a product using a perceptual map is to identify ______. Multiple choice question. a. the competitors offering the same product b. the promotion that will be used to highlight the product c. the important attributes of the product d. how the product will be repositioned in the minds of customers

c

When a business's own new product or new chain is stealing customers and sales from its older, existing products it is known as ______. Multiple choice question. a. head-to-head positioning b. internal competition c. cannibalization d. segments of one

c

Select all that apply What two outcomes result from effective market segmentation? Multiple select question. a. developing a persuasive argument b. assessing the competition c. identifying specific marketing mix actions d. forming meaningful groupings

c and d

Select all that apply When an organization produces only a single product and attempts to sell it to two or more different market segments, which costs may it incur? Multiple select question. a. Developing and producing several versions of the product b. Establishing mass customization c. Establishing a new channel of distribution d. Creating a separate promotional campaign

c and d

Select all that apply Which of the following are variables that are typically used in psychographic segmentation? (Check all that apply.) Multiple select question. a. Race/ethnicity b. Attitudes c. Personality d. Lifestyle

c and d

A ________ is a framework to relate the market segments of potential buyers to products offered or potential marketing actions. Multiple choice question. a. positioning matrix b. BCG model c. product perceptual map d. market-product grid

d

A market-product grid shows various product offerings and Multiple choice question. a. the locations of purchase for each. b. a demand estimate for each. c. the competitive firms that sell them. d. segments of prospective buyers.

d

A mass customization strategy seeks to ______. Multiple choice question. a. market the same product to as many markets as possible b. market as many products as possible to a single market c. tailor the needs of customers to as many products as possible d. tailor products to individual customers on a high-volume scale

d

Because more than half of all U.S. households are made up of only one or two persons, Campbell's packages meals with only one or two servings, which is an example of ________ segmentation. Multiple choice question. a. loyalty b. behavioral c. psychographic d. demographic

d

Dollar Rental Car, Avis, and Hertz compete directly on similar attributes in the same target market, with ________ positioning. Multiple choice question. a. homogeneous b. differentiation c. complementary d. head-to-head

d

Market segments are made up of ________ that are relatively similar to one another. Multiple choice question. a. retail outlets b. existing products c. advertising campaigns d. prospective buyers

d

Mass customization is one of several ________ strategies. Multiple choice question. a. development b. positioning c. cannibalization d. segmentation

d

One main purpose of a perceptual mapping exercise is for the firm to see where competitors are positioned in the consumer's mind, and ______. Multiple choice question. a. if there is an opportunity to discount its product b. whether consumers will purchase the product c. whether it should seek a different target segment d. where the firm is in relation to the competition

d

The Ann Taylor chain of stores has a problem with ________ from its sister chain Ann Taylor LOFT, whose sales have surpassed the the original Ann Taylor stores and have made it harder for them to reach their target customers. Multiple choice question. a. differentiation positioning b. internal competition c. co-branding d. cannibalization

d

The fundamental reason a business firm engages in market segmentation is to ______. Multiple choice question. a. better understand its customers b. identify unsatisfied needs c. create conditions for customer loyalty d. increase its sales and profits

d

The segmentation and targeting process should result in ______. Multiple choice question. a. a comprehensive list of competitive offerings b. a good understanding of the issues that will require looking into c. an estimate of demand for a new product offering d. the development of an action plan in the form of a marketing program

d

To create a perceptual map, evaluations of important attributes of the relevant products are collected from whom? Multiple choice question. a. marketers b. non-users of these products c. competitors d. target customers

d

When expenses are greater than the potentially increased sales from segmentation, a firm should ______. Multiple choice question. a. discontinue the product in question b. segment only on the basis of simple demographics like gender c. consider mass customization d. not attempt to segment its market

d

________ is the increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently. Multiple choice question. a. Product differentiation b. Mass customization c. Cannibalization d. Organizational synergy

d

True or false: It is always a good idea to segment a market.

false

McDonald's promotes coffee in Seattle and orange juice in Orlando. This is an example of________ segmentation.

geographic