CHP 8 MKT Practice QUIZ

In the context of psychographic segmentation, _____ segmentation divides people into groups according to the way they spend their time, the importance of the things around them, their beliefs, and socioeconomic characteristics such as income and education. a. gender b. lifestyle c. family life cycle d. ethnic

B

Which of the following is a trend that will lead to the continuing growth of customer relationship management (CRM)? a. Standardization b. Loyalty c. Indirect marketing d. Cannibalization

B

Which of the following statements is true of income? a. Income is a popular geographic variable for segmenting markets. b. Income level determines consumers' buying power. c. Income makes no impact on the family life cycle. d. Income level does not influence consumers' wants.

B

Which of the following is not a characteristic of a market? a. willingness to buy b. similar characteristics c. people or organizations d. ability

B Correct. A market is (1) people or organizations with (2) needs or wants and with (3) the ability and (4) the willingness to buy. Consumers with similar characteristics are part of a market segment.

A company that uses a psychographic market segmentation strategy will be most interested in the _____ of its potential customers. a. marital status b. lifestyle c. gender d. age

B A company that uses a psychographic market segmentation strategy will be most interested in the lifestyle of its potential customers. One of the psychographic segmentation variables is lifestyle. Lifestyle segmentation divides people into groups according to the way they spend their time, the importance of the things around them, their beliefs, and socioeconomic characteristics such as income and education.

_____ is a psychographic segmentation variable that reflects a person's traits, attitudes, and habits. a. Gender b. Personality c. Lifestyle d. Motive

B. Personality

Marketers at North Face have listed their segmentation descriptors as market size, density, and climate. They are likely segmenting the market: a. psychographically. b. demographically. c. geographically. d. by benefit.

C

**In the context of the strategies for selecting target markets, which of the following is an advantage of undifferentiated marketing? a. It makes a company immune to competition. b. It caters to the specific needs of individual customers. c. It offers potential savings on production and marketing costs. d. It results in highly imaginative and attractive product offerings.

C One advantage of undifferentiated marketing is the potential for saving on production and marketing. Because only one item is produced, a firm should be able to achieve economies of mass production.

Which of the following is an advantage of multiple-variable market segmentation? a. It uses secondary data that are easily available. b. It maintains the size of each market segment even with multiple segmentation bases. c. It is more precise than single-variable segmentation. d. It is simpler and easier to use than single-variable segmentation.

C Correct. Multiple-variable segmentation is more precise than single-variable segmentation. Markets can be segmented using a single variable, such as age group, or several variables, such as age group, gender, and education

A buyer that has little time to make a purchase decision would likely be classified as _____ rather than _____. a. an institution; a satisficer b. a producer; a volume purchaser c. an optimizer; a reseller d. a satisficer; an optimizer

D

A target market is a group of people: a. for whom an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group. b. who do not benefit from a new product or any changes made to an existing product targeted at them. c. who are least likely to change their purchasing patterns irrespective of any changes in the marketing mix for a product. d. who collaborate and co-brand their products to increase their market share, boost the sales records, and gain greater profits.

A

In the context of the strategies for selecting target markets, a firm that chooses to serve two or more well-defined market segments and develops a distinct marketing mix for each has a(n) _____. a. multisegment targeting strategy b. undifferentiated targeting strategy c. universal targeting strategy d. concentrated targeting strategy

A

Which of the following is a disadvantage of a multisegment targeting strategy? a. It results in cannibalization. b. It results in sterile, unimaginative product offerings. c. It reduces a firm's market share. d. It leads to lower sales volume and lower profits for a company.

A

In five years, Volkswagen sold only 57,000 of its Routan minivan. The company decided to stop producing the model and instead developed a new SUV, the Atlas. This illustrates that market segmentation: a. can help marketers better allocate resources. b. can help predict sales performance. c. is not helpful in determining customer needs and wants. d. is not helpful in defining marketing objectives.

A Correct. Market segmentation helps marketers define customer needs and wants more precisely and because market segments differ in size and potential, segmentation can help marketers more accurately define marketing objectives and better allocate resources.

When thinking about the characteristics of a market, willingness to buy can by illustrated by which of the following? a. Alex is ready to use the $400 he earned mowing lawns all summer to purchase a GoPro camera from Best Buy. b. Kristen was excited to learn that the new Hyundai Ioniq she had been admiring was finally available for sale at dealerships. c. Most large copy machines are purchased by companies or institutions in the business market. d. Griffin wants a pair of soccer cleats and recognizes that Nike makes a pair that will fit his needs.

A Correct. Willingness to buy can be illustrated by the example that Alex is willing to use the money he earned to purchase a product. Exchanging resources, usually money or credit, for desired products shows willingness to buy.

**In the context of the strategies for selecting target markets, which of the following is a disadvantage of undifferentiated targeting? a. It makes a company more susceptible to competitive inroads. b. It increases the production and marketing costs of a company. c. It leads to cannibalization. d. It results in market segments that are too small.

A A problem associated with undifferentiated targeting is that it makes a company more susceptible to competitive inroads. Too often, an undifferentiated strategy emerges by default rather than by design, reflecting a failure to consider the advantages of a segmented approach.

A house cleaning company, Speedy Clean, has identified three possible market segments for their services. To evaluate if the segments will be successful, Speedy Clean should determine if each segment is: (Check all that apply) a. responsive. b. accessible. c. perceptive. d. identifiable and measurable.

A,B,D

In the context of gender segmentation, which of the following statements is true of women? a. They are an inexperienced purchasing group, unlike men. b. They tend to research investments in-depth more than men do. c. They are rarely part of all-male markets, such as financial markets. d. They tend to accumulate money for the sake of accumulation.

B

In the context of market segmentation, _____ segmentation divides a market by the amount of product bought or consumed. a. family life cycle b. usage-rate c. benefit d. geographic

B

_____ segmentation clusters potential customers into neighborhood lifestyle categories. a. Benefit b. Usage-rate c. Family life cycle d. Geodemographic

D

Toyota manufactures many different styles and models of vehicles likely because: a. with over 1,200 dealerships in the United States, Toyota must make the models available to purchase for customers. b. Toyota becomes more efficient in manufacturing when producing multiple models. c. customers are willing to pay money or take out a loan in order to drive a Toyota vehicle. d. customers have different preferences and needs for vehicles and offering many different styles and models allows Toyota to meet those varying preferences.

D Correct. Market segmentation is important because groups of people or organizations have different product needs and preferences. Producing many different styles and models allows Toyota to meet those varying preferences and target many different customers.

**Which of the following statements is true of a product's positioning? a. It refers to the market share of a company. b. It is not influenced by the quality of competing products. c. It is ignored by consumer goods marketers. d. It influences potential customers' overall perception of a brand.

D Marketers segment their markets and then choose which segment, or segments, to target with their marketing mix. Then, based on the target market(s), marketers can develop a product's positioning, a process that influences potential customers' overall perception of a brand, product line, or organization in general.

Cheryl's Cookies has decided to create a charity that ships cookies to soldiers stationed in Syria. The soldiers could request the cookies through a mobile app and the orders would be paid for through donations. Because of the difficulty in communicating with people in a war zone, Cheryl's may have trouble with this segment not being: a. measurable. b. responsive. c. substantial. d. accessible.

D. Correct. Accessibility means that a company must be able to reach members of the targeted segment.