International Finance Exam 2
24. _____are those born between 1946 and 1964 and are a popular segment to target because of their numbers and income levels. a. Baby boomers b. Generation X c. Generation Y d. Tweens
A
3. The determination of whether pencils are consumer products or business products is based on: a. the purpose for which the pencils are purchased. b. the number of pencils purchased. c. the place where the pencils are purchased. d. the total price paid for the pencils.
A
36. Engel's laws state that, as household income increases: a. the percentage of income spent on items such as recreation and education increases. b. the percentage of income spent for clothing and household operations increases. c. the percentage of income spent on medical and personal-care decreases. d. the percentage of income spent on food remains constant.
A
39. 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? a. Psychographic segmentation b. Demographic segmentation c. Geographic segmentation d. Product-based segmentation
A
46. As per the studies conducted by Roper, the segment of customers who value professional and material goals more than other groups is called: a. strivers. b. devouts. c. altruists. d. fun seekers.
A
59. Which of the following factors sets the upper limit on demand generated by a particular market segment? a. Market potential of the segment under analysis b. Psychographic characteristics of the population in the segment c. Geographic dispersion of potential customers in the market segment d. Lifestyle characteristics of the population in the segment
A
69. A company that chooses to focus its efforts on satisfying only one market segment for profit is using a(n) _____ strategy. a. niche marketing b. societal marketing c. undifferentiated marketing d. mass marketing
A
77. Starbucks marketing itself as "Premium coffee" is an example of a positioning strategy that is based on _____. a. product class b. product users c. product life cycle stage d. product homogeneity
A
78. Placing a product at a certain point or location within a market in the minds of prospective buyers is known as _____. a. positioning b. social referencing c. value engineering d. optimizing
A
11. _____ is the largest metropolitan area in the world. a. New York b. Tokyo c. Mexico City d. London
B
15. A _____ is an urbanized county or set of counties with social and economic ties to nearby areas. a. consolidated micropolitan statistical area b. primary metropolitan statistical area c. core based statistical area d. consolidated metropolitan statistical area
B
16. Japanese automaker, Subaru, generates more than half of its sales in just four states (Alaska, Colorado, Maine, and Washington). These states constitute Subaru's: a. primary market. b. core region. c. secondary market. d. capital region.
B
18. The most common method of market segmentation is: a. product based segmentation. b. demographic segmentation. c. economic segmentation. d. psychographic segmentation.
B
19. Socioeconomic market segmentation is another name for _____ segmentation. a. product-related b. demographic c. psychographic d. geographic
B
25. If a company markets its breakfast cereal to children, it is using _____ segmentation to segment its markets. a. psychographic b. demographic c. end-use d. geographic
B
27. "The Millennial Generation" is also known as _____. a. the Baby Boomers generation b. Generation Next c. Generation X d. the Tweens generation
B
28. Places where more than half the population is a single racial or ethnic group other than non-Hispanic white are called as _____. a. minority counties b. majority-minority counties c. majority counties d. native-majority counties
B
32. The "empty nest" stage in the family lifecycle includes: a. young unmarried people. b. married couples whose children are living on their own. c. married couples with children in their growing years. d. newly married couples without children.
B
37. 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: a. more than 70 percent. b. the same as it was back then -- about 28 percent. c. about 50 percent. d. less than 10 percent.
B
43. The VALS system will categorize consumers who are influenced by symbols of success as: a. action-motivated consumers. b. achievement-motivated consumers. c. principle-motivated consumers. d. self-expression motivated consumers.
B
44. Which of the following is a psychographic category created by the VALS system that categorizes consumers by characteristics that correlate with purchase behavior? a. Altruists b. Achievers c. Intimates d. Devouts
B
47. Which of the psychographic consumer segments identified by Roper, emphasizes social issues and societal well-being? a. Devouts b. Altruists c. Intimates d. Creatives
B
49. "Intimates" is a segment of consumers identified by Roper and it consists of those people who value: a. professional and material goals. b. family and personal relationships. c. duty and tradition. d. knowledge and education.
B
5. The lumber that a carpenter purchases to make a table for a customer can be classified as a(n): a. impulse product. b. business product. c. consumer good. d. final product.
B
52. The 80/20 principle states that: a. market segmentation succeeds 80 percent of the time and fails the remaining 20 percent of the time. b. roughly 80 percent of total product sales come from 20 percent of customers. c. nearly 80 percent of the market segment is generally tapped within first 10 years of the introduction of the product, and 20 percent remains unreached. d. 80 percent of the market can be segmented, and 20 percent cannot.
B
53. A frequent flyer program used by an airline is an example of _____. a. segmentation by benefits sought b. brand loyalty segmentation c. psychographic segmentation d. socioeconomic segmentation
B
57. 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? a. Commit resources in developing one or more segments b. Forecast market potential c. Forecast probable market share d. Design specific marketing strategy
B
65. Oscar Mayer, a marketer of a variety of meat products introduced Lunchables, a product specifically aimed at children. This is an example of: a. undifferentiated marketing. b. differentiated marketing. c. mass marketing. d. micromarketing.
B
67. A _____ marketing strategy focuses on producing several products and pricing, promoting, and distributing them with several marketing mixes designed to satisfy smaller segments. a. mass b. differentiated c. societal d. demographic
B
7. When a product is used in the production of another good that is destined for resale, the product is considered as a(n): a. consumer product. b. business product. c. end product. d. used product.
B
71. Which of the following statements is true regarding micromarketing? a. Micromarketing techniques are mostly used by mass marketers. b. Micromarketing is more narrowly focused than concentrated marketing. c. Micromarketing is also called undifferentiated marketing. d. Micromarketing involves producing a single product and marketing it in the same way to all potential customers.
B
72. 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. a. undifferentiated b. concentrated c. mass d. societal
B
73. The four basic determinants of a market-specific segmentation strategy include company resources, competitors' strategies, stage in the product lifecycle, and: a. product demand. b. product homogeneity. c. environmental constraints. d. organizational efficiencies.
B
79. Marketers applying a positioning strategy want to: a. make their product look as much like the market leader as possible. b. emphasize a product's unique advantages and differentiate it from competitors' options. c. identify the different product attributes desired by different market segments. d. target only the loyal users of the product.
B
54. 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 _____. a. segmentation by benefits sought b. geographic segmentation c. segmentation by usage rates d. distributive segmentation
C
9. Which of the following is a basic requirement for effective market segmentation? a. The firm must avoid focusing on consumer-dependent variable, such as discretionary income, while conducting market segmentation. b. The market segment must present measurable purchasing power and size. c. The company must expand beyond its marketing capabilities to capture those market segments that have reached the maturity stage in the product life cycle. d. The company must target a large number of small market segments so that they can develop effective strategies to appeal to them.
B
23. The group born between 1968 and 1979, now generally in their early 30s to early 40s, often are referred to as _____. a. Baby boomers b. teenagers c. seniors d. Generation X
D
1. _____ are goods and services purchased for use either directly or indirectly in the production of other goods and services for resale. a. Impulse goods b. Shopping goods c. Business products d. Unsought products
C
10. A firm that divides its customers into homogeneous groups based on their locations is said to be practicing _____ segmentation. a. psychographic b. product-based c. geographic d. demographic
C
12. 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: a. consolidated metropolitan statistical area (CMSA). b. primary metropolitan region (PMR). c. metropolitan statistical area (MSA). d. micropolitan statistical area (µSA).
C
17. _____ are computer systems that help marketers analyze marketing information by assembling, storing, manipulating, and displaying data by their location. a. Core based information systems b. Inertial navigation systems (INS) c. Geographic information systems (GIS) d. Advanced navigation assessment systems
C
2. Goods and services purchased by the ultimate consumer for personal use are called _____ products. a. business b. primary c. consumer d. secondary
C
22. 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. a. geographic b. psychographic c. demographic d. core based
C
26. 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. a. income b. life cycle c. cohort d. Hafner's
C
31. A young single person setting up an apartment for the first time is most likely to be a good prospect for: a. expensive furnishings. b. luxury cars, personalized gifts and power tools. c. small home appliances such as coffee makers and toasters. d. health care products and insurance policies.
C
33. Which of the following changes in the family lifecycle behavior is noted by researchers in the past decade? a. Young unmarried people buying new homes and expensive furnishings b. Newly married people cooking almost every meal at home instead of dining out c. "Boomerang" children returning home, sometimes with their own families d. Parents with a second or subsequent child buying new sets of cribs, changing tables, and so forth
C
40. The revised VALS segmentation system categorizes consumers based on _____. a. religious affiliations b. political views c. self-motivation d. social values
C
41. Which of the following factors falls under the resource dimension of the VALS system? a. Social attitudes b. Primary motivation c. Eagerness to buy d. Political views
C
42. In the VALS system, action-motivated consumers are those who: a. have a set of ideas and morals or principles they live by. b. are influenced by symbols of success. c. seek physical activity, variety, and adventure. d. have high energy level and are eager to buy products.
C
45. As per the psychographic profiles identified by Roper, customers who value duty and tradition are called _____. a. intimates b. altruists c. devouts d. fun seekers
C
48. As per RoperASW's psychographic consumer segments, the group that seeks education, technology, and knowledge, and where the male-female ratio is roughly equal is called _____. a. devouts b. altruists c. creatives d. strivers
C
29. Which of the following is the largest racial/ethnic minority group in the United States? a. African Americans b. Native Americans c. Asian Americans d. Hispanics
D
60. In the process of market segmentation, once the market potential of the segments has been estimated, the next step is to: a. develop a marketing mix. b. develop a relevant profile for each segment. c. forecast probable market share. d. seek strategies to enter the market.
C
61. Which of the following products would be the best choice to be marketed using an undifferentiated marketing strategy? a. Luxury automobiles b. Healthy snack foods c. Table salt d. Imported wine
C
64. The marketing strategy that focuses on producing a single product and marketing it to all customers is called: a. concentrated marketing. b. micromarketing. c. mass marketing. d. differentiated marketing.
C
66. Compared to undifferentiated marketing, the firm that practices differentiated marketing may generally expect: a. less sales by segment. b. lower total production costs. c. greater promotional costs. d. lower inventory costs.
C
70. A firm that chooses to target potential customers by zip code, specific occupation, or even lifestyle is said to be practicing: a. mass marketing. b. hypermarketing. c. micromarketing. d. undifferentiated marketing.
C
74. The latest ad of Crest toothpaste says "Crest is a cavity fighter." This is an example of a positioning strategy based on: a. product price/quality. b. product homogeneity. c. product application. d. product users.
C
76. The tagline used by Blue Jet cleaners, "Pay for Performance." is an example of a positioning strategy that is based on _____. a. product homogeneity b. product users c. price/quality d. competitors
C
8. The division of the total market into smaller, homogenous groups is called _____. a. customer aggregation b. market capitalization c. market segmentation d. brand segmentation
C
80. A positioning map: a. is used primarily by companies utilizing undifferentiated marketing strategies. b. can be used only for already successful products in the market. c. shows how consumers view a product relative to competitive products. d. outlines how to introduce a new product to the marketplace.
C
13. A micropolitan statistical area is an area that: a. includes a set a counties within an area of 1-million-plus population. b. has a urban center of 50,000 or more inhabitants. c. includes two or more primary metropolitan statistical areas. d. has at least one town of 10,000 to 49,999 people.
D
14. An urban area that include two or more primary metropolitan statistical areas (PMSA) is called a _____. a. metropolitan statistical area (MSA) b. core based micropolitan region (CBMR) c. micropolitan statistical area (µSA) d. consolidated metropolitan statistical area (CMSA)
D
20. _____ defines consumer groups according to variables such as gender, age, income, occupation, education, sexual orientation, household size, and stage in the family lifecycle. a. Geographic segmentation b. End-use segmentation c. Product-based segmentation d. Demographic segmentation
D
21. The cohort effect describes: a. why members of the same psychographic group decide to vote the same way and have a lot of similarities in their choices. b. how Generation X uses its financial power to influence product trends, and gets closely followed by the marketers. c. the effect of demographic characteristics in analyzing purchase habits, product usage rates, and brand preference. d. the tendency of members of a generation to be influenced and bound together by events occurring during their key formative years.
D
30. Which of the following racial/ethnic minority groups is an attractive target for marketers because of their fastest-growing income? a. Hispanics b. Native Americans c. African Americans d. Asian Americans
D
34. One of the reasons cited by the U.S. Department of Commerce for the trend toward smaller households is: a. young people's tendency to marry early. b. the increase in the number of same-sex couples. c. the low cost of living. d. the frequency of divorce.
D
35. Which of the following changes is seen as a result of a rise in households with only one person? a. Increase in apartment building developments b. Decrease in the average size of new cars c. Decrease in the marketing of vacations d. Increase in single-serve food products
D
38. Psychographic segmentation divides a population into groups based on: a. their use of the product. b. their income and expenditure patterns. c. their geographic location. d. their attitudes, values and lifestyles.
D
4. 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. a. business b. service c. MRO d. consumer
D
50. Segmentation by benefits sought is a product-related segmentation approach that: a. determines the marketer's effectiveness in satisfying the consumer. b. measures brand loyalty and consumer perception. c. re-evaluates customer reactions post-consumption. d. focuses on the attributes that people seek in a product.
D
51. 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: a. brand loyalty. b. usage rates. c. expenditure pattern. d. benefits sought.
D
55. The product-related segmentation of consumers based on the strength of their attachment and allegiance to their preferred products is called _____ segmentation. a. values and lifestyles b. business-to-business c. psychographic d. brand loyalty
D
56. Before beginning the market segmentation process, a firm should: a. select target market segments. b. forecast total market potential. c. forecast market share. d. identify bases for segmenting markets.
D
58. 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 sex and majority of them are urban dwellers. During the process of market segmentation, this information is most likely to be used by Tom for: a. observational analysis. b. marketing research. c. forecasting total market potential. d. developing a market segment profile.
D
6. Iron ore and raw cotton are examples of: a. personal products. b. shopping products. c. impulse products. d. business products.
D
62. Undifferentiated marketing is also called _____. a. societal marketing b. micro marketing c. concentrated marketing d. mass marketing
D
63. An undifferentiated marketing strategy: a. involves developing different marketing mixes for different segments. b. benefits from the control and efficiency of short production runs. c. is also known as a concentrated marketing strategy. d. is efficient from a production point of view.
D
68. Which of the following statements is true of differentiated marketing? a. A company practicing differentiated marketing attempts to satisfy everyone in the market with one standard product. b. As compared o undifferentiated marketing, differentiated marketing leads to lower inventory and promotional cost. c. Differentiated marketing approach can appeal to a small company that lacks the financial resources of its competitors. d. Differentiated marketing helps a company to diversify and reach new customers.
D
75. The tagline used by Walmart, "Save money. Live better" is an example of a positioning strategy that is based on _____. a. quality b. attributes c. product users d. competitors
D