Chapter 8
Which positioning base for a product or service focuses on a personality or type of consumer? a. Product class b. Attribute c. Product user d. Emotion
c
Rolls Royce cars target only the premium car market segment. This is a classic example of: a. multisegment targeting. b. undifferentiated targeting. c. differentiated targeting. d. concentrated targeting.
d
According to family life cycle segmentation, young married or divorced couples with children have high liquid assets. a. True b. False
false
Based on the target market(s), a marketer develops the product's positioning, a process that influences nonpotential customers' overall perception of a brand. a. True b. False
false
Cannibalization occurs when the sales of a firm's existing product increase with the introduction of a new product. a. True b. False
false
Customers looking for luxury want products that exhibit careful craftsmanship, timeless design, prestige, and exclusivity. This type of market is segmented by ethnicity. a. True b. False
false
. _____ refers to segmenting markets by region of a country or the world, market size, market density, or climate. a. Geographic segmentation b. Benefit segmentation c. Demographic segmentation d. Usage-rate segmentation
a
A ____________segmentation has the advantage of being simpler and easier to use. a. single-variable b. double-variable c. triple-variable d. multiple-variable
a
A firm using a(n) _____ essentially adopts a mass-market philosophy, viewing the market as one big market with no individual segments. a. undifferentiated targeting strategy b. niche targeting strategy c. individual targeting strategy d. concentrated targeting strategy
a
A marketer who tries to convince consumers that a particular brand is distinctive—and, therefore, they should demand it—is concerned with which positioning strategy? a. Product differentiation b. Product user or class c. Product repositioning d. Cannibalization
a
According to family life cycle segmentation, middle-aged married couples with or without children: a. are difficult to promote by advertisement. b. are better off financially than young married couples with or without children. c. buy medical care products that aid health, sleep, and digestion. d. have the highest purchase rate.
a
Advertisements of Dove soap show real women in its campaigns and commercials rather than celebrities. Which product positioning has Dove chosen for marketing its soap? a. Uses or applications by means of positioning b. Price and quality c. Attribute d. Product class
a
Apple saw a huge drop in the sales of its iPhone 6s when they launched the iPhone 7. This situation exemplifies _________________, that is, when a new product cuts into the sales of existing products within the same company. a. cannibalization b. positioning c. repositioning d. competition
a
Based on age segmentation of a target market, which group is at peak earning power but seeks to spend only on products that provide the best value for money? a. Generation X b. Generation Y c. Generation Z d. Baby Boomers
a
Chipotle stated they were "in the market for Mexican food" by competing on quality instead of price. Chipotle is a company that prides itself on serving "food with integrity." Which mass market targeting strategy did it use when entering the market? a. Undifferentiated targeting b. Concentrated targeting c. Multisegment targeting d. Differentiated marketing
a
Kirksand Airlines is well known for providing excellent customer service to its flyers. The staff members inquire about each flyer's wants and needs, and listen carefully to their responses. If a flyer has any specific requests, the staff members ensure that they are immediately attended to. In this scenario, Kirksand Airlines illustrates _______________, which has been found successful in spurring on the growth of customer relationship management. a. personalization b. mass marketing c. loyalty d. technology
a
Starlight Jewelry sends Lauren a birthday card along with a pendant as a token of appreciation for shopping frequently at its store. This trend in customer relationship management aims at cultivating its customers by _____. a. acknowledging their loyalty b. implementing technology c. providing time savings d. offering standardization
a
The combination of demographics, lifestyles, and geographic categories leads to ______________. a. geodemographic segmentation b. benefit segmentation c. usage-rate segmentation d. psychographic segmentation
a
The process of defining, dividing, and subdividing a large homogenous market into clear identifiable segments having similar needs, wants, or demand characteristics is identified as _____________________________. a. market segmentation b. a consumer market c. market criteria d. market concentration
a
The step of choosing a basis or bases for segmenting a market requires creativity, market knowledge, and ________. a. managerial insight b. technical savvy c. organizational skills d. managerial directive
a
The world's best coffee beans come from Colombia. Therefore, the more Colombian beans in a blend of coffee, the better the blend; and no company purchases more Colombian beans than Kreemo Coffee. Which positioning strategy is the company demonstrating? a. Product differentiation b. Product user c. Competitor d. Product class
a
This demographic group belonged to the Great Depression generation and had the ability to quietly persevere through great hardships. They were taught to play by the rules and tend to be cautious and are the healthiest, most educated, and wealthiest group of elders. Identify which demographic group is described. a. The silent generation b. The sandwich generation c. Generation Z d. Generation Y
a
Walmart is a successful example for retailing. The store emphasizes low pricing in its ads and promotes its message that customers can get more for their money. Walmart likely uses _________________________. a. income segmentation b. age segmentation c. gender segmentation d. ethnic segmentation
a
Which of the following is true of usage-rate segmentation? a. It combines former users, potential users, first-time users, light or irregular users, medium users, and heavy users. b. Categories of products do not vary with the product in user-rate segmentation. c. Heavy users often change their preferences. d. It groups potential customers on the basis of their personality, motives, and lifestyles.
a
Which of the following occurs when sales of a new product cut into sales of a firm's existing products? a. Cannibalization b. Product churning c. Backward invention d. Commodification
a
Which of the following statements is true of markets? a. They are composed of people or organizations. b. They thrive only with government funds and subsidies. c. They provide discounts for every consumer. d. They influence consumers to buy products they do not need.
a
Which statement is true of gender segmentation in the United States? a. Women are increasingly part of formerly all-male markets. b. Women are not an experienced purchasing group, unlike men. c. Men make 70 to 80 percent of purchases of consumer goods each year. d. Men tend to be more deliberate than women and to take longer to make investment decisions.
a
Which statement is true of market segmentation? a. It helps marketers design marketing mixes that match the characteristics of one or more segments. b. It allows marketers to use an undifferentiated targeting strategy. c. It allows marketers to adopt a single marketing mix across all market segments. d. It helps marketers focus on satisfying customer needs.
a
Zinta Co. has launched a new laptop computer with a bigger monitor and big lettered keyboard. The company uses this model to target senior communities and provides discounts. The company targets thirteen cities in the United States with high populations of seniors. This scenario exemplifies which type of market segmentation? a. Geodemographic segmentation b. Psychographic segmentation c. Benefit segmentation d. Usage-rate segmentation
a
. When selecting strategies for targeting markets, which of the following is a disadvantage of an undifferentiated targeting strategy? a. It results in market segments that are either too small or that shrink because of environmental changes. b. It often results in sterile, unimaginative product offerings that have little appeal to anyone. c. It results in cannibalization of products. d. It increases the production and marketing costs of a firm.
b
A concentrated targeting strategy differs from an undifferentiated targeting strategy in that a concentrated targeting strategy: a. results in cannibalization of products. b. involves the selection of a market niche to target the marketing efforts of a firm. c. views the market as one big market with no individual segments. d. reduces the production and marketing costs of a firm.
b
Chipotle has become popular with a variety of people. It recently identified a primary customer segment in Millennials. To win over this demographic group, traditional media is less authentic in the perception of Millennials, therefore, Chipotle does not use traditional media, and its marketing and promotion focus on maintaining a large online and social media presence. Here Chipotle is likely to use: a. undifferentiated targeting. b. concentrated targeting. c. multisegment targeting. d. differentiated marketing.
b
Companies that successfully implement customer relationship management (CRM) tend to: a. Use an undifferentiated targeting strategy. b. Customize the goods and services offered to their customers. c. Assume that customers have similar needs that can be met with a general marketing mix. d. Minimize the use of database technology.
b
In the context of family life cycle segmentation, which of the following statements is true? a. Young divorced couples without children have the lowest purchase rate. b. Middle-aged married couples with or without children have high average purchase of durables. c. Young married couples with children have high liquid assets. d. Middle-aged divorced couples without dependent children are least satisfied with their financial position.
b
Julie works as a public relations executive in a firm and is definitive in her choice of office clothes and accessories. She prefers to wear only certain brands. Hence, she is always seen in clothes from Banana Republic and carries only Coach handbags to office. Which psychographic variable is Julie exhibiting? a. Motives b. Personality c. Geodemographics d. Attributes
b
Mr. Shaw wants to buy corporate gifts for his employees. He considers numerous suppliers of corporate gifts, both familiar and new, solicits bids, and studies all proposals carefully before selecting a supplier. Mr. Shaw's purchasing profile could be characterized as a(n) _________. a. satisficer b. optimizer c. venturist d. close-fisted buyer
b
Nalpas Inc., an apparel company, manufactures clothes for men, women, and children. It further divides its core customers according to demographic variables such as income, ethnic background, and family life cycle. These demographic variables are examples of _____. a. product bases b. segmentation bases c. product categories d. market segments
b
New technology that allows marketers to collect detailed information of customers offers marketers a more cost-effective way to reach customers and: a. choose which segment or segments to target. b. enables businesses to personalize their messages. c. review general activity on the website. d. position the product.
b
Once known as a rugs brand, in 2006 Burberry revamped its product line to reinvent itself as a luxury brand by harnessing the power of heritage. Which strategy did Burberry use to influence the overall perception of its brand in the eyes of its old and potential new customers? a. Positioning b. Repositioning c. Perceptual mapping d. Product differentiation
b
Terra Corp. produces a wide range of furniture, such as cabinets, book cases, and bureaus. It divides its consumer market into several groups of people who have similar interests in wooden furniture. The strategy of dividing its consumer market most likely: a. allows Terra Corp. to meet the markets' needs with a single marketing mix. b. enables Terra Corp. to define customer needs and wants more precisely. c. eliminate the need for developing marketing objectives. d. allows Terra Corp. to use an undifferentiated targeting strategy.
b
Tesla wanted to break into the electric vehicle (EV) marketplace with a luxury sports model. At that time, economic value was more highly prized than form and function. Therefore, Tesla chose not to compete with the other brands' successful luxury hybrids and targeted the high-end market for electric vehicles. Which base did Tesla use to position itself in the market? a. Price and quality b. Attribute c. Competitor d. Emotion
b
To develop a successful segmentation scheme, marketers gather data about the population within specific geographic boundaries, the number of people in various age categories, and other social and demographic characteristics. This example describes which of the four basic criteria used to develop useful segment schemes? a. Sustainability b. Identifiability and measurability c. Responsiveness d. Accessibility
b
To position a product as being associated with a particular category of products is positioning by: a. product user. b. product class. c. attribute. d. product differentiation.
b
Trower Inc. has launched a new smartphone in two different versions. Both variants of the smartphone have a similar design but have different hardware specifications. The company uses this strategy to make this smartphone more universally affordable. In this scenario, Trower Inc. is most likely using __________________________. a. usage-rate segmentation b. income segmentation c. gender segmentation d. age segmentation
b
Unilever is a multinational corporation selling consumer goods under various categories such as foods, beverages, cleaning agents, and personal care products. This is an example of: a. product user. b. product class. c. product differentiation. d. repositioning.
b
Wesley Electronics Inc. manufactures electronic gadgets. Its marketing team spent a great deal of money on advertising to create awareness about the company's products among potential customers and employs a variety of methods, such as print, broadcast, and online advertising. According to the steps involved in segmenting a market, Wesley Electronics most likely is: a. selecting a market or product category for study. b. designing and implementing its marketing mix. c. profiling and analyzing market segments. d. selecting segmentation descriptors for a market.
b
Which of the following is a psychographic segmentation variable? a. Usage rate of a product b. Geodemographics c. Gender d. Ethnicities
b
Which of the following is an advantage of a multisegment targeting strategy? a. It significantly reduces the risk of product cannibalization. b. It provides economies of scale in manufacturing and marketing. c. It does not require firms to tailor marketing mixes to the preferences of market segments. d. It decreases the costs involved in product design, marketing research, and management.
b
Which of the following statements is true of a concentrated targeting strategy? a. It allows a firm to serve two or more well-defined market segments simultaneously. b. It is often adopted by small firms to compete effectively with much larger firms. c. It follows a mass-market philosophy by viewing the market as one big market without any individual segments. d. It results in cannibalization of products.
b
A firm which produces replicas of famous paintings of reputed and great artists has as its target customers: socialites, celebrities, and the hospitality industry. What type of market segmentation is used in this case? a. Geographic segmentation b. Psychographic segmentation c. Benefit segmentation d. Demographic segmentation
c
As a commitment to diversity and inclusion, Bank of America partnered with the American Ad Council on a campaign known as "Love Has No Labels." The campaign was a roaring success as it touched upon which positioning base of its audience? a. Responsiveness b. Personality c. Emotion d. Attribute
c
Demographics provide the skeleton for developing segmentation strategies, but ___________adds meat to the bones. a. geographic segmentation b. benefit-usage segmentation c. psychographic segmentation d. benefit segmentation
c
Gamers' Page is a magazine that primarily caters to people who are enthusiastic about sports and who enjoy gaming. In this scenario, the editorial board of Gamers' Page uses _____. a. gender segmentation b. geographic segmentation c. psychographic segmentation d. family life cycle segmentation
c
Laelle is a confectionery company that manufactures candies. It does not use specific strategies to target children when marketing its products. Instead it uses the same strategies to promote its candies among all consumers in the market. In this scenario, Laelle uses a(n) _____. a. multisegment targeting strategy b. individual targeting strategy c. undifferentiated targeting strategy d. concentrated targeting strategy
c
Mass-marketing efforts will continue to be used by marketers: a. because consumers have more time to make purchase decisions. b. to gather detailed information on customers, which is not possible in direct marketing. c. to remind consumers of a product. d. because they allow marketers to target customers with extremely relevant offerings.
c
Pine Groove, a cosmetic brand that primarily caters to women, wants to reach out to the less-traditional male market. It conducts research and develops a new product especially for men. In this example, Pine Groove uses _____. a. ethnicity segmentation b. age segmentation c. gender segmentation d. psychographic segmentation
c
Prisly Inc. is a multinational company that specializes in manufacturing and selling high-end cars. It launches a new car, the Gwen 2.0, that becomes highly successful in the market because of its economical price and excellent features. However, this leads to a significant decline in the sales of Prisly Inc.'s other cars. This scenario exemplifies _____. a. segmentation b. differentiation c. cannibalization d. personalization
c
Tennot Inc. sells used cars. It focuses solely on low-income customers who prefer to buy a used car rather than a new one. Therefore, it develops one marketing mix that targets a low-income demographic group. In this scenario, Tennot Inc. most likely uses a(n) _____. a. undifferentiated targeting strategy b. multisegment targeting strategy c. concentrated targeting strategy d. universal targeting strategy
c
The key tool in the marketing strategy of every successful organization for reaching the targeted customer is: a. planning the marketing strategy. b. improving marketing premises. c. market segmentation. d. market criteria.
c
This group is idealistic and pragmatic and the top brand attributes important to them include trustworthiness, creativity, intelligence, authenticity, and confidence. Identify this group. a. Generation X b. Teenagers c. Millennials d. Generation Z
c
What is the similarity between a stock market and a labor market? a. Both use a barter system to facilitate the exchange of products. b. Both are composed of people who are unwilling to spend large sums of money for products or services. c. Both are composed of people with specific wants that can be satisfied by particular product categories.
c
Why do marketers segment their markets and what are the basic criteria for doing so successfully? a. Segments must be composed of people with different product needs. b. Segments must be composed of people with different characteristics. c. Segments must be large enough to warrant developing and maintaining a special marketing mix. d. Segments must be divided according to the North American Industry Classification System.
c
With regard to age segmentation, the tween and teenage cohort following the Millennials is sometimes called _____. a. Generation X b. the Baby Boomer generation c. Generation Z d. the Silent Generation
c
_____ involves dividing a market into groups such as newborns, infants, young children, tweens, Millennials, Generation X, Baby Boomers, and seniors. a. Ethnic segmentation b. Family life cycle segmentation c. Age segmentation d. Psychographic segmentation
c
_____ is a means of displaying or graphing, in two or more dimensions, where the products, brands, or groups of products are located in customers' minds. a. Multidimensional scaling b. Product differentiation c. Perceptual mapping d. Product tracing
c
A cosmetic company manufactures products for skin and hair care for both men and women in the 20- to 50-year-old age group. Which type of market segmentation approach does the company undertake? a. Geographic segmentation b. Psychographic segmentation c. Benefit segmentation d. Demographic segmentation
d
A firm that adopts an undifferentiated targeting strategy assumes that: a. a market is composed of narrowly defined market segments. b. small firms can compete effectively with large firms. c. concentrating all resources on understanding the needs of a single market may lead to cannibalization. d. individual customers have similar needs that can be met with a common marketing mix.
d
Direct and personal marketing efforts will continue to grow to meet the needs of consumers who no longer have the time to spend shopping and making purchase decisions. Which tool helps marketers meet this demand of consumers? a. Positioning b. Perceptual mapping c. Personalization d. CRM
d
In the context of customer relationship management (CRM), _____ offers marketers a more cost-effective way to reach customers and enables businesses to personalize their messages. a. repositioning b. undifferentiated targeting c. cannibalization d. new technology
d
The 80/20 principle holds that 20 percent of all customers generate 80 percent of the demand. Although the percentages usually are not exact, the general idea often holds true. Which consumer market segment is described here? a. Benefit segmentation b. Geographic segmentation c. Market segmentation d. Usage-Rate segmentation
d
The purpose of market segmentation is to: a. change consumer attitudes and beliefs toward a product. b. divide a market into submarkets of equal size and equal number of customers. c. eliminate the need for developing marketing objectives. d. enable a marketer to tailor marketing mixes to meet the needs of one or more specific segments.
d
Titan Company manufactures watches for all age groups, gender, and income and also for all important family occasions. This company exemplifies ________________________. a. income segmentation b. ethnic segmentation c. gender segmentation d. family life cycle segmentation
d
Volten Inc. is an apparel store. It has separate sections for casual wear, office wear, and party wear. It offers a broad selection of clothing across various price ranges to accommodate consumers at different income levels. In this way, Volten caters to different socioeconomic groups. Volten targets its market segments using _____ as its base for product positioning. a. product class b. application c. competitor d. product user
d
Which of the following statements is true of lifestyle segmentation? a. It divides people into groups based on their traits, attitudes, and habits. b. It divides a market by the amount of product bought or consumed. c. It divides people into market segments according to the benefits they seek from a product. d. It divides people into groups based on socioeconomic characteristics such as income and education.
d
Which statement is true of product positioning? a. It assumes that consumers compare products solely on the basis of price. b. There are two positioning bases: application and price. c. The quality of competing products does not influence product positioning. d. It is a process that influences potential customers' overall perception of a brand and product line.
d
_____ helps marketers develop marketing programs tailored to prospective buyers who live in small regions or who have very specific lifestyle characteristics. a. Benefit segmentation b. Family life cycle segmentation c. Ethnic segmentation d. Geodemographic segmentation
d
_____ is a common base of demographic segmentation. a. Product benefit b. Usage rate c. Geography d. Income
d
_____ is market segmentation on the basis of personality, motives, lifestyles, and geodemographics. a. Benefit segmentation b. Family life cycle segmentation c. Usage-rate segmentation d. Psychographic segmentation
d
A market segment is a subgroup of people or organizations having different characteristics that cause them to have distinct product needs. a. True b. False
false
Ethnic segmentation involves segmenting potential customers into neighborhood lifestyle categories. a. True b. False
false
Generation Y grew up as latchkey kids, meaning that they spent time alone at home while their (often divorced) parents worked long into the night, and they were the best-educated generation. a. True b. False
false
Market segmentation helps marketers define customer needs and wants more precisely because market segments do not differ in size and potential. a. True b. False
false
One disadvantage of the personal and targeted nature of customer relationship management (CRM) is that consumers are spending more time making purchase decisions. a. True b. False
false
Segmenting by customer type allows business marketers to tailor their marketing mixes to the common needs of particular types of organizations or industries. a. True b. False
false
Single-variable segmentation has the advantage of being more precise than multiple-variable segmentation. a. True b. False
false
The final step in market segmentation is selecting segmentation descriptors. a. True b. False
false
There are many scientific procedures for selecting segmentation variables to use in identifying a market and there is no need for having market knowledge for segmenting the market. a. True b. False
false
Wester Helix, a watch manufacturing company, is a brand mostly associated with men. Although they also manufacture products for women, these products are less popular. To increase the sale of these products, Wester Helix opens a sister company that caters solely to women. In this scenario, Wester Helix uses age segmentation. a. True b. False
false
When segmenting markets by age, Baby Boomers expect everything to be instantaneous because they have always lived in a world with Internet. a. True b. False
false
Women tend to accumulate money for the sake of accumulation and rarely associate it with security, independence, or quality of life. a. True b. False
false
A company selling plain toilet paper is an example of a firm that uses an undifferentiated targeting strategy. a. True b. False
true
A concentrated strategy can be disastrous for a firm that is not successful in its narrowly defined target market. a. True b. False
true
A dynamic segmentation approach adjusts to fit the changes that occur in customers' lives. a. True b. False
true
A market is people or organizations with needs or wants and with the ability and the willingness to buy. a. True b. False
true
According to family life cycle segmentation, consumption patterns among people of the same age and gender differ because they are in different stages of the family life cycle. a. True b. False
true
Even with the advantages of CRM as a targeting tool, marketers will continue to use mass marketing, especially to create brand awareness or to remind consumers of a product. a. True b. False
true
It is possible to define every person and every organization in the world as a market segment because each is unique. a. True b. False
true
Market segmentation helps decision makers to more accurately define marketing objectives and better allocate resources. a. True b. False
true
One advantage of undifferentiated marketing is the potential for saving on production and marketing costs. a. True b. False
true
Promotion is one of the components that forms a marketing mix. a. True b. False
true
Segmentation descriptors identify the specific segmentation variables to use in segmenting a market. a. True b. False
true
Unilever is an example of multinational company with a multisegment targeting strategy that has many products in its product line. a. True b. False
true
When developing a product positioning strategy, marketers need to consider how consumers view the distinctions between products and analyze whether those distinctions are real or perceived. a. True b. False
true
