Chapter 8
112. A potential disadvantage of multisegment targeting is _____, which occurs when sales of a new product cut into sales of a firm's existing products. a. cannibalization b. synergy c. positioning d. demarketing e. inelastic demand
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. onetoone marketing
A
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
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
30. The CocaCola 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. usagerate e. multipositioning
A
31. Almost all cell phones sold in the United States are black or gray. Almost all cell phones sold in Europe are colorful, and very few black phones are sold. A cell phone manufacturer knowing this information could use _____ segmentation when selling its phones internationally. a. geographic b. economic c. demographic d. benefit e. multipositioning
A
36. Modern Maturity magazine is targeted toward adults aged 50 years and older. It has articles on health and fitness as well as the arts and finance. What segmenting base is Modern Maturity using? a. Demographic b. Geographic c. Nomological d. Economic e. Generational
A
39. Redbook magazine targets what it calls "Redbook jugglers," defined as 25 to 44year- old women who must juggle family, husband, and job. According to a Redbook ad, "She's the product of the 'me generation,' the thirtysomething 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
44. CocaCola launched a new Black History television commercial on BET to coincide with the Martin Luther King Jr. holiday. The ad is just one element of a strategy for connecting with African American consumers. CocaCola's segmentation plan for this promotional campaign is based on _____ segmentation. a. demographic b. sociocultural attributes c. psychographic d. usage rate e. geodemographic
A
52. _____ segmentation is based on personality, motives, and lifestyles. a. Psychographic b. Demographic c. Benefit d. Family life cycle e. Character
A
53. All of the following are bases for psychographic segmentation EXCEPT: a. benefits b. personality c. motives d. lifestyles e. geodemographics
A
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 healthrelated 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
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
A
60. _____ is a method that clusters potential customers into neighborhood lifestyle categories and is a combination of geographic, demographic, and lifestyle segmentations. a. Geodemographic segmentation b. Microsegmentation c. Sociocultural clustering d. Acculturation e. Lifestyle segmentation
A
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
64. _____ is the process of grouping customers into market segments according to the benefits sought from the product. a. Benefit segmentation b. Valueadded segmentation c. Lifestyle segmentation d. Macrosegmentation e. Psychographic segmentation
A
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 yearround. a. reposition b. reengineer c. demarket d. undifferentiate e. niche
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 householdsize packages to resellers. It also sells institutionalsize 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
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
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
9. Home Cookin' Catering would like to improve customer satisfaction and increase repeat business. When you ask the owners to describe a typical customer, they say it is impossible and explain that with corporate functions, family affairs, and fundraisers, they do not have a typical customer. You suggest it is time for market segmentation because: a. it will enable them to build an accurate description of customer needs by group and to design a marketing mix to fit each segment b. the company needs to reduce the size of the market it serves c. the company needs to learn how to group these markets together into one market to serve all of them adequately d. it will help develop a generalized definition of the market as a whole and reveal the optimal marketing mix for this market e. this will position the company in the minds of its consumers as compared to its competitors
A
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
96. Which of the following is NOT an advantage of an undifferentiated marketing strategy? a. effectively protects firm from competition b. very cost effective c. low complexity d. reaches anyone e. All of the above are advantages.
A
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
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
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
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
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
114. Pharmaceutical firms have introduced new overthecounter 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
116. Clorox saw sales of its bleach products suffer when it introduced laundry detergents with bleach as an added ingredient. This is an example of: a. demarketing b. cannibalization c. undifferentiation d. repositioning e. perceptual confusion
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. onetoone marketing c. an application of the 80/20 rule d. transactional marketing e. marketing through technology
B
123. The RitzCarlton hotel chain is renowned for its service and individual treatment of its customers. All service staff and employees have note pads and are taught to record every little piece of information they learn about a customer. If a business traveler ordered soft pillows, only wanted martinis in his mini bar, and needed access to a fax machine, he would find all of these amenities in his room when he arrived. The RitzCarlton is basing its onetoone marketing on which of the following trends? 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. Data mining capabilities d. The use of reward systems to increase brand loyalty e. The growing market for luxury products
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
137. Ad campaigns for Aleve pain reliever emphasize the fact that to get the same relief offered by one Aleve, you would need to take six aspirin or Tylenol and four Advil. These promotions are using the positioning base of: a. product class b. competitor c. product user d. product merits e. price and quality
B
139. Changing consumers' perceptions of a brand in relation to competing brands is known as: a. positioning b. repositioning c. reintermediation d. demarketing e. reengineering
B
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
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
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
B
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
B
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
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 packagedgoods 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
35. Colgate manufactures a fruitflavored SpongeBob Squarepants toothpaste for kids. The agebased variable that distinguishes the market for this product is an example of _____ segmentation. a. geographic b. demographic c. psychographic d. benefits e. usage rate
B
4. 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
40. Which of the following statements about the teen market is TRUE? a. Teens represent half of all spending in the United States. b. Teens are technologically savvy and are very social consumers. c. Teens typically have very little influence over major family purchase decisions. d. Teens spend a considerable amount of money on healthrelated purchases. e. All of the above are true.
B
43. Abbeville Press published a book by Armin Brott and Jennifer Ash entitled The Expectant Father: Facts, Tips, and Advice for DadstoBe. It is an advice book for men whose partners are expecting a baby.. What demographic variables have been used to define the market for this book? a. Benefit desired and lifestyle b. Gender and family life cycle stage c. Age, gender, and personality d. Benefit desired and gender e. Usagerate and lifestyle
B
46. In Miami, several radio stations broadcast in Spanish and play Latin music for the Hispanic people living in South Florida. The radio stations are using _____ segmentation. a. usage rate b. ethnic c. socioeconomic d. geographic e. gender
B
48. A series of stages determined by a combination of age, marital status, and the presence or absence of children is known as the: a. generation gap. b. family life cycle. c. maturation process. d. segmentation cycle. e. psychographic process.
B
5. A group of middle school students stop by a bicycle store. The store has just received a new shipment of highend racing bicycles. The bicycles range in price from $1,200 to $3,000. All of the students want one of these new bikes, but none has the means to buy one. Is this group of consumers a potential market for the expensive bikes? a. Yes, they are a potential market since they are all about the same age. b. No, they do not have the ability to purchase at this time. c. No, to qualify as a market, they must need the product. d. Yes, they are a market because this product could satisfy their consumer wants and desires. e. Yes, they are a market because this group shares relatively similar product needs and purchasing characteristics.
B
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
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
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
67. KarryLite, the manufacturer of lightweight 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. usagerate e. featurebased
B
91. Thompson Pools installs and maintains swimming pools. They group their customers according to their needs: new installs, regular maintenance, and frequent product consumers. When do they need a new segmentation analysis? a. Once every 20 years b. They should do them regularly because of the rapidly changing nature of most markets. c. They don't need any because consumer markets don't rapidly change and develop like business goods markets. d. Every year, using new bases for variety e. Only when the market changes
B
93. A(n) _____ is a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges. a. heterogeneous segment b. target market c. responsive segment d. aggregated market e. undifferentiated target
B
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
97. Which of the following is a potential disadvantage associated with an undifferentiated strategy? a. Large competitors may more effectively market to niche segment b. Unimaginative product offerings c. Segments too small d. High costs e. Loss of synergy
B
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
103. A(n) _____ strategy entails selecting one segment of a market to target and focuses on understanding the needs, motives, and satisfactions of the members of that segment, as well as on developing a highly specialized marketing mix. a. universal product b. undifferentiated targeting c. concentrated targeting d. market development e. product development
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."
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
119. Lands' End offers customers the option of having jeans and other types of pants made to fit them according to their waist, hip, and leg length measurements. This is an example of: a. an application of the 80/20 rule b. firewall marketing c. onetoone marketing d. transformational marketing e. data mining
C
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
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
128. Elaine perceives Cadillac automobiles to be for older men, not for young professional women such as herself. Elaine's perception represents Cadillac's _____ in her mind. a. status b. frame c. position d. role e. equity
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
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
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 followup 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.
C
26. Scott owns Buffalo Mountain Coffee in Deer Park, Ohio.. He understands the need to segment his market, and available marketing research indicates there is much demand in the community for unique coffee drinks. However, he has few resources and cannot engage in intensive consumer research to precisely identify a segment. Which of the following strategies would you suggest he employ? a. Develop an undifferentiated strategy, because it is not a large community and he could create a single marketing mix that would serve the entire community b. Employ a macrosegmentation strategy, because the data needed for such a strategy are both easy to get and fit his needs exactly c. Use a singlevariable strategy, because it offers an inexpensive alternative that would not require much experience to employ d. Use a multiplevariable segmentation strategy, because it is easier to use than single- variable segmentation e. Conduct a VALS investigation of his buying market
C
3. A market is people or organizations that have: a. the ability, willingness, and power to buy. b. a medium of exchange and products they desire. c. needs and wants and an ability and willingness to buy. d. unmet needs or wants and products or services that satisfy those unmet needs or wants. e. communication, financial, and capital resources.
C
33. Marketers use _____ to segment markets because this information is widely available, and factors such as age or gender are often related to consumer purchasing and consumption behavior. a. benefits b. psychographics c. demographics d. usage rates e. sociocultural attributes
C
34. Income, ethnic background, gender, and age are all examples of _____ segmentation bases. a. geodemographic b. organizational c. demographic d. socioeconomic e. psychographic
C
37. FisherPrice developed a rugged, waterproof camera for children. This product uses _____ segmentation. a. ethnicity b. income c. age d. gender e. occupation
C
38. While most marketing to Generation Y tries so hard to be hip that it borders on parody, Vans has kept the decadesold 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
41. Deal$ stores sell a wide variety of lowpriced merchandise: party supplies, cleaning products, toys, food, housewares, and health and beauty products for both men and women. Many items in the store are priced no higher than one dollar. Which type of demographic segmentation is Deal$ using? a. Ethnic b. Usage rate c. Income d. Gender e. Age
C
45. Johnson Publishing Company, the world's largest African Americanowned 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
47. Modern Bride is a publication that contains articles and lots of ads for the bridetobe. 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
49. Jane graduated from high school in 1978, is married, and has two teenage children. Most of Jane's friends from high school have children who have already graduated from college and gotten married, and some have grandchildren. Jane and her former classmates are at different stages of the: a. internalization phase. b. segmentation process. c. family life cycle. d. psychographic cycle. e. maturation process.
C
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
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
66. ThermaCare airactivated 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. featurebased
C
71. Which type of segmentation divides a market by the amount of product bought or consumed? a. Benefit segmentation b. Characteristic segmentation c. Usagerate segmentation d. Demographic segmentation e. Psychographic segmentation
C
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. usagerate d. demographic e. personality
C
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. usagerate d. demographic e. personality
C
77. The _____ proposes that a minority of a firm's customers purchase a majority of the volume of the product. a. majority fallacy b. equity fallacy c. 80/20 principle d. cannibalization rule e. optimizer principle
C
80. Business marketers focus on all of the following market segments EXCEPT: a. institutions. b. producers. c. households. d. resellers. e. government.
C
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
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
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 massmarket philosophy indicates she probably uses a(n) _____ strategy. a. multisegment targeting b. universal product c. concentrated targeting d. undifferentiated targeting e. product differentiation
D
101. When Henry Ford made the Model T, he said that consumers "can have their car in any color they want, as long as it's black." This was a case of: a. Repositioning. b. Reengineering. c. onetoone marketing. d. undifferentiated targeting. e. niche marketing.
D
106. E&V Bridal Studios, a wedding consulting business, only works with Eastern Asian customers who want to use their cultural heritage in their wedding ceremonies. What type of segmentation strategy does the wedding consultant use? a. Market aggregation b. Undifferentiated targeting c. Multisegment marketing d. Concentrated targeting e. Limited demand
D
108. When a firm serves two or more welldefined market segments with a distinct marketing mix for each, it is using a(n) _____ targeting strategy. a. undifferentiated b. concentrated c. niche d. multisegment e. pluralistic
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
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 welldefined 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
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
117. An individualized marketing method that utilizes customer information to build long- term, personalized, and profitable relationships with each customer is referred to as: a. 80/20 marketing b. interpersonal marketing c. zoned marketing d. onetoone marketing e. individual marketing
D
125. _____ is the development of a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general and is related to the place a product occupies in consumers' minds relative to competing offerings. a. Market differentiation b. Diversification c. Combination marketing d. Positioning e. Market aggregation
D
126. Chandler Kumar owns two antique stores. One is in an upscale neighborhood, and its merchandise is artfully arranged and priced to indicate product rarity. The other is in a rundown strip mall and contains some of the same type of merchandise, but the items are left in open boxes and placed haphazardly on shelves. Customers of either store have entirely different perceptions of the stores and would be surprised to know Kumar operates each of them because he uses such differing _____ strategies. a. market integration b. segmentation c. targeting d. positioning e. market combination
D
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
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 onthego 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
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
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
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
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 nonHispanics living in a different neighborhood. Kraft's strategy best exemplifies _____ segmentation. a. sociocultural b. lifestyle c. cluster benefit d. geodemographic e. systematic geographic
D
65. Miller Lite's longrunning "Great Taste...Less Filling!" advertising campaign was ranked by Advertising Age magazine as the 8thbest 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
76. What does the 80/20 principle propose? a. Roughly 80 percent of the profit comes from 20 percent of the sales. b. Roughly 80 percent of a firm's customers are repeat business. c. Roughly 50 percent of a firm's customers purchase 80 percent of the sales volume of the product. d. Roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product. e. Sales are equally divided among heavy, medium, and light users, but they all need slightly different products.
D
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
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
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
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
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
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
121. The basic goal of onetoone marketing is to: a. increase the market for the product category to new and current customers. b. eliminate the use of mass media for promotion and locate a direct communications channel. c. increase operating costs and locate new customers. d. reduce the number of company employees and increase overall sales. e. reduce costs through customer retention and increase revenue through customer loyalty.
E
122. All of the following have been identified as trends that will lead to the continuing growth of onetoone 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 packagedgoods products.
E
127. The place a product, brand, or group of products occupies in consumers' minds relative to competing offerings is referred to as a product's: a. status b. equity c. frame d. role e. position
E
129. There are a number of devices that parents can buy to prevent their children from hearing objectionable language while they watch television. ProtecTV is the only product of its kind that has an expandable dictionary. Parents can add words and phrases they find offensive, and the additional words will be deleted from soundtracks and captioning. ProtecTV uses a(n) _____ strategy. a. repositioning b. demarketing c. market integration d. undifferentiated targeting e. product differentiation
E
130. Products such as bleaches, aspirin, unleaded regular gasoline, and some soaps are distinguished by differences such as brand names, packaging, color, smell, or "secret" additives. With these products, marketers attempt to convince customers that their product is significantly different from the others and should therefore be demanded over competing brands. These marketers are using: a. cannibalization b. perceptual mapping c. psychographic targeting d. integrated marketing e. product differentiation
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
14. 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
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
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
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 lighterweight 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
42. H&M plans to open a new store in Saudi Arabia. It will be staffed completely by women. Saudi Arabia has strict laws about women interacting with men other than their husbands, so only women will be permitted to shop there. Which type of demographic segmentation is H&M using? a. Lifestyle b. Usage rate c. Benefit d. Age e. Gender
E
51. Which of the following businesses would be most likely to use family life cycle segmentation? a. Those that produce and market computer software and hardware b. The snack industry c. Fastfood restaurants d. Businesstobusiness marketers e. Wedding planners, couplesonly resorts, and day care centers
E
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
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 averagesized people to be cramped and uncomfortable. Tall Paul's uses _____ segmentation. a. geodemographic b. usagerate c. demographic d. psychographic e. benefit
E
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. usagerate c. demographic d. psychographic e. benefit
E
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
70. Many people find it difficult to peel hardboiled eggs. Eggies is a kitchen gadget designed to help make cooking hard boiled eggs quicker and easier. The product allows customers to hardboil eggs without the shell. Consumers simply crack an egg, pour it into the plastic "Eggie," boil, then twist to enjoy hardboiled eggs without the messy peeling of the eggshell after they're done. Eggies is using _____ segmentation. a. usagerate b. demographic c. geodemographic d. competitive e. benefit
E
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. usagerate
E
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 pointsforreward 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
78. Pocketknife collector Sam Penley decided to open The Knife Depot, a store that sells pocket knives and related paraphernalia.After 18 months in business, Sam has noticed that most of his sales are to the same small group of customers (about 40 people) even though he has records to show there are over 200 active pocketknife collectors within a 50mile radius of his store. Sam's retailing experience is supportive of the: a. optimizer principle b. minmax rule c. majority fallacy d. rule of demand e. 80/20 principle
E
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
E
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
98. One segment of a market is called a: a. slice b. wedge c. pocket d. slot e. niche
E