ch9 marketing review
The cohort effect describes:
the tendency of members of a generation to be influenced and bound together by events occurring during their key formative years
Psychographic segmentation divides a population into groups based on:
their attitudes, values, and lifestyles
Iron ore and raw cotton are examples of:
business products
Progresso Soup has a line of hearty soups that are promoted to all consumers using a single marketing mix. The company is utilizing ______ marketing.
concentrated
An urban area that includes two or more primary metropolitan statistical areas (PMSA) is called a _____.
consolidated metropolitan statistical area (CMSA)
Goods and services purchased by the ultimate consumer for personal use are called _____ products.
consumer
Kyle plans to buy new tires for a car that his family uses for camping trips. These tires are of the same type like those that are used on General Motors commercial trucks and can be purchased from Industrial Tire Company. The tires that Kyle will buy for his car can be classified as _____ products.
consumer
Marketers applying a positioning strategy want to:
emphasize a product's unique advantages and differentiate it from competitors' options
A firm that divides its customers into homogeneous groups based on their locations is said to be practicing _____ segmentation.
geographic
North Face is a well known brand affiliated with active lifestyles such as backpacking, snow skiing, and camping. The company's products are available in a wide number of retail outlets as well as their company- owned specialty stores. The mix of products sold in the retail outlets varies widely depending on the market location. For example, stores in Northern California stock technical products suitable for customers who are avid backpackers, hikers and rock climbers while retailers in the Midwest states offer a greater selection of apparel. What type of segmentation is reflected by stores carrying the North Face brand?
geographic
Title Nine is a specialty retailer targeting active women with a proprietary mix of apparel designed for active lifestyles and sports. The company began as a direct marketer - using only catalogs and its website to generate sales. However, over the years, Title Nine has opened retail outlets across the country. The company identifies strategic opportunities for new stores based upon the sales generated by current customers in the potential market area. For example, if Title Nine has a significant number of purchasers in the Boston area, they will further analyze the market and select a location for a retail outlet. What type of segmentation strategy is Title Nine utilizing when selecting a market for a new store location?
geographic
_____ are computer systems that help marketers analyze marketing information by assembling, storing, manipulating, and displaying data by their location.
geographic information systems (GIS)
Compared to undifferentiated marketing, the firm that practices differentiated marketing may generally expect:
greater promotional costs
A micropolitan statistical area is an area that:
has at least one town of 10,000 to 49,999 people
Bill wants to use VALS to segment the market for his firm's costly but cutting-edge gaming software. He knows that his potential customers are likely to be:
innovators
The revised VALS framework categories consumers by characteristics that correlate with _____.
purchase behavior
A television commercial shows several enthusiastic teens smiling widely and speaking in turn directly to the camera. Using the featured skincare product has changed their lives! It costs more than what you find in the corner drugstore, but it is worth every penny! After weeks of trying one product after another, embarrassed by acne breakouts and shy about socializing with others, now they have clear faces with a healthy-looking glow! What form of product-related segmentation has driven the development of this marketing campaign?
segmenting by benefits sought
The revised VALS segmentation system categorizes consumers based on _____.
self-motivation
A positioning map:
shows how consumers view a product relative to competitive products
A young single person setting up an apartment for the first time is most likely to be a good prospect for:
small home appliances such as coffee makers and toasters
To remain competitive, marketers must accurately gauge their customers and adapt to changing consumer sentiment. Sometimes this adaptation calls for repositioning a product or service. Why might a product or service be repositioned?
the company is aiming for a greater share of the current market
Procter and Gamble is seeking to target women aged 18-to-34 to influence their purchasing of shampoo and bath gels. They selected the television network ABC Family and specifically airs commercials during the "Pretty Little Liars" time slot. Which criteria of effective segmentation is Procter and Gamble utilizing?
?
Which of the following is not one of the motivations used to classify consumers in the VALS framework?
?
Which of the following statements is true of differentiated marketing?
Differentiated marketing helps a company to diversify and reach new customers
AIO statements describe which of the following?
activities, interests, and opinions
The product-related segmentation of consumers based on the strength of their attachment and allegiance to their preferred products is called _____ segmentation.
brand loyalty
The tagline used by Walmart, "Save money. Live better" is an example of a positioning strategy that is based on _____.
competitors
Undifferentiated marketing is also called _____.
mass marketing
When firms identify the factors that affect consumers' purchase decisions and develop strategies and tactics to appeal to specific types or groups of customers, they are practicing market _________.
segmentation
A present-day marketer is reviewing data attempting to differentiate a target group of consumers that meets the four basic requirements of effective segmentation. One group stands out above the rest, and he will direct his marketing efforts toward that group. Toward what group will he direct his marketing efforts?
white males
Market segmentation has interested you ever since your first marketing course, and you want to work for the type of organization that uses this technique. This means you should avoid pursuing a job with:
you could pursue a job with any of the above, since all would use market segmentation
Income is a common demographic variable for segmenting the consumer market, and expenditure patterns vary with income. Engel's laws are three general statements based on Ernst Engel's statistical study of the impact of changes in household income on consumer spending behavior. These statements were valid over 100 years ago and with a few exceptions, still appear to be valid today. Choose the statement below that best summarizes Engel's laws.
As income increases: a smaller percentage is spent on food; the percentage spent on housing and clothing remains constant; the percentage spent on other items like recreation increases.
Developing a relevant user profile is the first step in the market segmentation process. How are segment profiles used to identify the typical customer in each segment?
Segment profiles are used to describe similarities among members of a market segment, and to explain differences among members in separate market segments.
Marketers must consider the advantages and disadvantages of each marketing strategy as they choose which one is the best fit for their firm. You have chosen to market your company's product using a differentiated marketing strategy. What disadvantage will you face?
Your marketing costs will be higher and you will have more production processes.
The VALS system will categorize consumers who are influenced by symbols of success as:
achievement-motivated consumers
Which of the following is a psychographic category created by the VALS system that categorizes consumers by characteristics that correlate with purchase behavior?
achievers
Which of the following racial/ethnic minority groups is an attractive target for marketers because of their fastest-growing income?
asian americans
_____ are those born between 1946 and 1964 and are a popular segment to target because of their numbers and income levels.
baby boomers
A technology company that makes computers for professional use is trying to segment its customers. The company asked some professional computer users to evaluate the importance of various computer attributes that influence their purchase decisions and then used this data to segment the consumers based on similar response patterns. This is an example of segmentation by:
benefits sought
June knows that the students who patronize her campus ice cream shop are looking to socialize as much as to consume a treat. In her advertising, she shows images of customers enjoying each other's company. June is segmenting based on:
benefits sought
A frequent flyer program used by an airline is an example of _____.
brand loyalty segmentation
Jacob is the facility manager for a senior living facility and is responsible for maintaining the facility and ensuring that it looks its best. He likes to repaint all surfaces in the facility every two years and has an exclusive contract with Sherwin Williams who supplies the paint and materials. The paint and materials that Jacob purchases from Sherwin Williams to be utilized in the senior living facility would be classified as _____ products.
business
The lumber that a carpenter purchases to make a table for a customer can be classified as a(n):
business product
When a product is used in the production of another good that is destined for resale, the product is considered as a(n):
business product
_____ are goods and services purchased for use either directly or indirectly in the production of other goods and services for resale.
business products
Ford Motor Company surveyed 10,000 customers to analyze their needs and preferences in automobiles. At the end of the survey, respondents were asked to provide demographic information, including age. Responses concerning preferences were strikingly similar for each group within a specific five-year age range. This result is an example of the _____ effect.
cohort
American Express, a large firm with many financial products, recently introduced two new credit cards designed for very specific markets: The Knot, for engaged couples, and The Nest, for newlyweds. This is an example of _____ marketing.
concentrated
Cecile is an avid cook and enjoys spending time in the kitchen as well as watching shows on the Food Network. She recently remodeled her kitchen and purchased new appliances. Since she enjoys cooking so much, Cecile purchased a commercial range from a local restaurant supply store and it features double ovens and 12 burners. Her contractor had to make some modifications to enhance the safety of this stove for use in her home but no other changes were needed. What type of product is the stove in the context of this example?
consumer ?
Japanese automaker, Subaru, generates more than half of its sales in just four states (Alaska, Colorado, Maine, and Washington). These states constitute Subaru's:
core region
Market segmenting by demographics, also called socioeconomic segmentation, is the most common method of defining consumer groups. Select the best definition for market segmentation by demographics from the choices below.
defining consumer groups based on variables including income, age, ethnicity, and occupation
Bobby Flay is a popular celebrity chef who is famous for his use of the grill to create his signature dishes. Recently, Bobby Flay debuted a line of grilling accessories and believes these products will be successful because he has a loyal following among men aged 30 to 60. What type of segmentation is utilized for this new line of grilling accessories?
demographic
Market segmentation plays a very important role in developing a marketing strategy. Select the best definition of market segmentation from the choices below.
dividing the total available market into smaller, similar groups
Which of the following factors falls under the resource dimension of the VALS system?
eagerness to buy
The VALS system divides consumers into _____ categories.
eight
Segmentation by benefits sought is a product-related segmentation approach that:
focuses on the attributes that people seek in a product
The United States population is increasingly diverse and more companies are recognizing the opportunity to target the Hispanic population since they are expected to become the dominant ethnic group in the near future. Which requirement of segmentation does the growing number of Hispanic customers fulfill?
large market segment offering good profit potential
The _____ principle recognizes that a large percentage of a product's revenue stream is generated by a relatively small, loyal portion of total customers.
loyalty
Places where more than half the population is a single racial or ethnic group other than non-Hispanic white are called as _____.
majority-minority counties
Which of the following factors sets the upper limit on demand generated by a particular market segment?
market potential of the segment under analysis
Dell Computer offers a variety of desk top, tablet and laptop computers. One popular product line is Dell's Alienware - built for gamers with high speed processors, enhanced memory and special graphics cards. What marketing principle is Dell utilizing with its Alienware product line?
market segmentation
The division of the total market into smaller, homogenous groups is called _____.
market segmentation
Market segmentation can help marketers increase their accuracy in reaching the right markets, but it is best used flexibly with other marketing tools. Choose the statement below that best summarizes the market segmentation process.
market segmentation is accomplished in four steps: it employs user profiles; forecasts the overall market; estimates the market share; and selects specific target markets.
The "empty nest" stage in the family lifecycle includes:
married couples whose children are living on their own
The marketing strategy that focuses on producing a single product and marketing it to all customers is called:
mass marketing
The Fayetteville-Springdale-Rogers region of Arkansas has approximately 340,000 people. Fayetteville is an urban center and it alone has a population of 60,000. The Fayetteville-Springdale-Rogers region would be classified as a:
metropolitan statistical area (MSA)
A firm that chooses to target potential customers by zip code, specific occupation, or even lifestyle is said to be practicing:
micromarketing
Barnes and Noble encourages customers to pay $10 annually to become "members" in a loyalty program which rewards them by discounting their purchases. Barnes and Noble utilizes the membership program to analyze customer buying habits and routinely recommends books, magazines or other products which fit their purchasing profile. What type of marketing is Barnes and Nobles using?
micromarketing
There are many tools available to a savvy marketer who uses geographic segmentation, including national population data published by the U.S. government. This statistical data is classified as core based, metropolitan, micropolitan, primary metropolitan, and consolidated metropolitan. Select the statement below that best reflects population data published by the federal government.
most of the U.S. population lives in suburban environments, which is also true worldwide
A company that chooses to focus its efforts on satisfying only one market segment for profit is using a(n) _____ strategy.
niche marketing
Master Cookie Bakers sells customized cookies to restaurants and standardized cookies to individual buyers. The firm is using:
niche marketing, since cookie buyers are a single niche among buyers of baked goods
Cadillac has strategically sought to become known as a prestige brand among 30 to 50 year olds and routinely uses television advertising to showcase the high quality and luxury attributes of the new models. It seeks to use _______ to separate the brand from other US brands and be perceived more similarly to European models such as Audi and BMW.
positioning
Placing a product at a certain point or location within a market in the minds of prospective buyers is known as _____.
positioning
Which of the following is utilized to help managers position products by graphically illustrating consumers' perceptions of competing products within an industry?
positioning map
The tagline used by Blue Jet cleaners, "Pay for Performance," is an example of a positioning strategy that is based on _____.
price/quality
A _____ is an urbanized county or set of counties with social and economic ties to nearby areas.
primary metropolitan statistical area
The latest ad of Crest toothpaste says "Crest is a cavity fighter." This is an example of a positioning strategy based on:
product application
Starbucks marketing itself as "premium coffee" beverage retailer is an example of a positioning strategy based on _____.
product class
There are a number of strategies that you can use to position your company's technology product in the mind of the consumer. You decide to focus your advertising campaign on the perception that your product is what the others aspire to be--the best. Which of the common categories for product positioning are you using to develop your marketing campaign?
product class
Several leading brands of breakfast cereal have changed the basis on which they try to set their products apart from competition, shifting from taste to healthful ingredients. It would be accurate to describe this change as:
repositioning
In your regular goods and services consumption activities, you purchase products from the wholesaler for resale and for use in your store's daily operations. You also purchase products that you will feature in the gift baskets you make. On the basis of this information, which of the following best describes the market component you are part of?
resell
The 80/20 principle states that:
roughly 80 percent of total product sales come from 20 percent of customers
In the VALS system, action-motivated consumers are those who:
seek physical activity, variety, and adventure
A consumer goods company segments its markets on the basis of purchase patterns of their customers. The company groups its consumers who regularly buy their product into heavy, moderate, and light users, and nonusers. This segmentation approach is an example of _____.
segmentation by usage rates
According to the VALS framework, achievement-motivated consumers are influenced by:
symbols of success
Marketers adopt different strategies in order to promote their products in the market. But what is a market? Select the best definition of market from the choices below.
specific people and organizations likely to buy certain goods and services
Which of the following products would be the best choice to be marketed using an undifferentiated marketing strategy?
table salt
One of the reasons cited by the U.S. Department of Commerce for the trend toward smaller households is:
the frequency of divorce
Market segmentation is a tool for marketers to use, but its effectiveness depends on four basic requirements. Three of the requirements for effective market segmentation are as follows: (1) the segment must have measurable purchasing power and size; (2) marketers must be able to promote and serve the market; (3) the identified segment must be large enough to bring in a profit. Select the fourth requirement for effective market segmentation from the choices below.
the identified segments must match the company's marketing capabilities
Which of the following is a basic requirement for effective market segmentation?
the market segment must present measurable purchasing power and size
You have just completed an extensive marketing research project designed to determine the potential of a new service your company is considering launching. Using surveys, polling, face-to-face interviews, and mail- in questionnaires, you have determined that the consumers who are most inclined to use this new service live in densely populated urban areas within certain zip codes. What approach to market segmentation should you use?
use geographic variables to segment the market
"The Millennial Generation" is also known as _____.
generation next
Which of the following changes in the family lifecycle behavior is noted by researchers in the past decade?
"boomerang" children returning home, sometimes with their own families
Sustainability has become an important value among individuals in the United States and some believe that man-made factors such as the increased use of diesel and gasoline in cars has led to global warming. Those worried about global warming and seeking ways to reduce their carbon footprint and have invested in products such as solar panels for their homes and electric or hybrid vehicles. What type of segmentation would be most appropriate for Toyota to utilize in marketing its Prius - a hybrid vehicle?
?
In the process of market segmentation, once the market potential of the segments has been estimated, the next step is to:
forecast probable market share
Adrienne has received her first solo assignment since she was hired as a junior marketing researcher for a national food and beverage distributor. She has been asked to formulate some preliminary ideas about new product development for coffee products sold in the distributor's on-premise consumption outlets. She understands that this assignment is a test to see whether she knows the process. She decides to start with the basics, adding a twenty-first-century twist. How will Adrienne begin the process of formulating ideas about new product development?
Adrienne will send online coupons to customers who are Facebook friends or have visited the company's website, and ask them to complete a brief online AIO lifestyle survey that inquires about their activities, interests, and opinions.
You have just been promoted to vice president of marketing for your firm. Unlike your predecessor, you believe the firm can increase its sales in a market by focusing on more than one segment of the market. You recognize that doing this means your firm will incur higher production costs. Based on this information, which of the following targeting strategies are you advocating?
a differentiated targeting strategy
If a company markets its breakfast cereal to children, it is using _____ segmentation to segment its markets
demographic
Lululemon Athletica, which specializes in athletic wear for women, recently launched a website featuring Ivivva, a new line of athletic and dance clothing for girls. Based on the information given in this example, Lululemon Athletica is using _____ segmentation to segment its markets.
demographic
Socioeconomic market segmentation is another name for _____ segmentation.
demographic
The most common method of market segmentation is:
demographic segmentation
_____ defines consumer groups according to variables such as gender, age, income, occupation, education, sexual orientation, household size, and stage in the family lifecycle.
demographic segmentation
Clairol offers a line of hair color called "Nice n Easy" which allows women to touch-up their hair and easily cover their gray hairs conveniently and easily at home. Based on research, Clairol knows that women aged 30 and above are most likely to need some type of color product to hide their gray hair and maintain a youthful appearance. What type of segmentation does Clairol use by targeting women over 30?
demographic?
While researching on the idea of opening his own health club, Tom learned that there are 11 million health club members in the United States, and 90 percent of them are between the ages of 18 and 49. They prefer to exercise with people of their own gender, and the majority of them are urban dwellers. During the process of market segmentation, this information is most likely to be used by Tom for:
developing a market segment profile
A _____ marketing strategy focuses on producing several products and pricing, promoting, and distributing them with several marketing mixes designed to satisfy smaller segments.
differentiated
Oscar Mayer, a maker of various meat products, introduced Lunchables, a product specifically aimed at children. This is an example of:
differentiated marketing
Bose has developed a new high fidelity line of speakers and is attempting to determine the amount of sales that could be generated by target customers in various segments in order to determine whether or not they should proceed with introduction of the new speakers. Which step of the marketing segmentation process best describes this activity?
forecast market potential
CoreLogix Inc., has segmented the market as per product usage rates. They have also developed the relevant profile for each of their segments. What would be the next logical step for them in this process of segmentation?
forecast market potential
You want to encourage your longtime customers to continue their relationship with the service your company provides, and so you implement an approach commonly used to segment a market by brand loyalty. What approach did you use?
frequent purchase program
The group born between 1968 and 1979, now generally in their early 30s to early 40s, often are referred to as _____.
generation x
Which of the following is the largest racial/ethnic minority group in the United States?
hispanic americans
Before beginning the market segmentation process, a firm should:
identify bases for segmenting markets
Which of the following changes is seen as a result of a rise in households with only one person?
increase in single-serve food products
An undifferentiated marketing strategy:
is efficient from a production point of view
Which of the following statements is true regarding micromarketing?
micromarketing is more narrowly focused than concentrated marketing
Psychographic segmentation is not an exact science. While it helps to paint an overall picture of the psychological motivations of consumers, those motivations are influenced by countless variables, such as family, occupation, and culture. Select the statement below that gives an accurate description of the effective use of psychographic segmenting.
psychographic segmentation is effective when it helps to match a company's product offering with the types of consumers who use its products.
The four basic determinants of a market-specific segmentation strategy include company resources, competitors' strategies, stage in the product lifecycle, and:
product homogeneity
Starbucks recently faced criticism for changing the way consumers could earn free food and beverage in its loyalty program. Originally, consumers could earn 1 star for each purchase - regardless of dollar value spent. However, the new program ties the star benefit to the dollar amount spent by a customer - rewarding those who spend more with more points. The Star program is frequently utilized by Starbucks to entice its members to return to the outlet. The company utilizes e-mail and in-app promotions to maintain an loyal following. What type of segmentation is Starbucks utilizing with its Star rewards program?
product-related
In recent years, consumers have become increasingly concerned about the use of pesticide and other chemicals in the agricultural industry. Some are worried that the increased use of chemicals has led to higher incidences of disease such as cancer. Consumers who share these opinions will often purchase products labeled "organic" and "natural". Marketers who are utilizing these words on product packaging or in their promotions are implementing _______ segmentation.
psychographic
Which of the following segmentation approaches is most likely to help marketers quantify aspects of consumers' personalities and lifestyles to create goods and services for a target market?
psychographic segmentation
The company, Eco Nuts was featured on Shark Tank and has become one of the show's success stories due to the growing acceptance of their product as an alternative to traditional laundry detergent. T he company typically targets women, aged 40 to 65 who have total annual household income above $60,000 and are concerned about sustainability. What step in the market segmentation process has Eco Nuts utilized with this description?
select specific market segments
Because consumer needs and purchasing power vary widely, marketers try to identify those factors that affect the decision to buy and make a good target market. Which important characteristic of a market segment would make it an attractive target market?
the market segment shows a pattern of growth
Engel's laws state that, as household income increases:
the percentage of income spent on items such as recreation and education increases
The determination of whether pencils are consumer products or business products is based on:
the purpose for which the pencils are purchased
A junior member of your marketing department has recommended demographic segmentation for your fast food brand. In a memo, he wrote: "We should be marketing to females who are Hispanic, low-income, unmarried, and have four or more children." You express at least one strong concern about this recommendation. What concern(s) do you express?
the recommendation could lead to stereotyping and market alienation
Five years ago, Joshua spent 28 percent of his $45,000 yearly income on his bachelor apartment. Today, Joshua is earning $60,000 annually. According to Engel's laws, the percentage of income he will spend on his new apartment will be:
the same as it was back then, about 28 percent
_____ is the largest metropolitan area in the world.
tokyo
