Chapter 2

P$YCLE segments consumers based on the household's lifestage class.

False

Perry & Swift — an investment management firm — used the 2001 P$YCLE Segmentation System, which is part of a database entitled ________. A) Nielsen MyBestSegments B) VALS C) PRIZM D) Nielsen NetRatings E) Magazine Readers Index (MRI)

A

When Colgate divides the pre-teens toothpaste group into four segments and offers each one its own toothpaste, they are using ________ segmentation. A) demographic B) sociocultural C) psychological D) physiological E) use-related

A

Age, gender, and income are bases of which of the following types of segmentation? A) geographic segmentation B) sociocultural segmentation C) benefit segmentation D) demographic segmentation E) psychological segmentation

D

Catering to the distinct needs of consumers by offering them clearly differentiated products is significantly more profitable than mass marketing.

True

Demographic variables can reveal ongoing trends that signal business opportunities, such as shifts in age and income distribution.

True

Most marketers prefer to target consumer segments that are relatively stable in terms of demographic and psychological factors and that have needs that are likely to grow larger over time.

True

Personality traits and cultural values are consumer-intrinsic cognitive factors.

True

Consumer innovators are generally characterized by which of the following personality traits? A) open-minded and perceive less risk than others in trying new things B) reserved and skeptical of marketing information C) extraverted and risk averse D) high in exhibition and reserved E) extraverted and reserved

A

The most popular segmentation system combining lifestyle and values is ________. A) PALS B) VALS C) LAPS D) SALS E) CALS

B

Consumers belonging to the VALS segment called Believers is motivated by desire for achievement and have moderate resources, so they are trendy and seek approval from others.

False

Donor Greens do not care about wildlife or environmental issues, so they do not engage in environmentally friendly behaviors or feel guilty about adversely impacting the environment.

False

When Qantas offers First Class, Business Class, Premium Economy, and Economy, with different features and amenities for each segment, they are engaged in positioning.

True

________ segmentation differentiates among heavy users, medium users, light users, and nonusers of a specific product, service or brand. A) Brand awareness B) Brand loyalty C) Usage rate D) Sociocultural E) Benefit

C

Which of the following is NOT tracked during online navigation to inform behavioral targeting? A) the sites consumers visit B) the pages consumers look at on a site C) lifestyles and personalities D) how often consumers return to a site E) brick-and-mortar purchases

E

Rate of usage is strongly related to two cognitive dimensions: product involvement and ________. A) product awareness status B) background C) personality D) awareness E) country of origin

A

The greeting card industry capitalizes on occasions to sell products; this is a perfect example of ________ segmentation. A) lifestyle B) benefit C) usage situation D) demographic E) geographic

C

Whether or not consumers need to be informed about a product relates to consumers' ________. A) awareness status B) usage situation C) attitude D) usage rate E) learning-involvement

A

In the RENTAL CAR MINI CASE, Rosetta focuses on vacation travelers, as opposed to business travelers. Dividing the market in this way is known as ________. A) psychographic segmentation B) geographic segmentation C) demographic segmentation D) sociocultural segmentation E) psychological segmentation

A

________ information is often the most accessible and cost-effective way to identify a target market. A) Demographic B) Sociocultural C) Psychological D) Physiological E) Benefit

A

In the VALS typology, Makers are motivated by self-expression and tend to have low resources. They choose hands-on constructive activities and spend leisure time with family and close friends. This segment tends to prefer ________. A) familiar products and established brands B) value over luxury, and tend to buy basic products C) products that offer durability, functionality, and value D) products that reflect cultivated tastes for upscale niche products and services E) premium products that demonstrate success to their peers

B

Campbell's slogan "soup is good food" is an example of ________. A) premier position B) positioning against competition C) umbrella positioning D) key attribute positioning E) un-owned perception positioning

C

Consumers' characteristics can be classed as either consumer-intrinsic or consumption-specific. In this context, consumer-intrinsic features stem from the consumer's physical, social, and psychological characteristics. Examples of consumer-intrinsic features include ________. A) demographics, gender, and benefits sought B) usage rate, level of involvement, and psychographics C) personality traits, cultural values, and income D) education, consumption-specific attitudes, and social class E) attitudes regarding shopping, awareness of product alternatives, and benefits wanted

C

________ consists of looking at merchandise at a physical store, scanning its barcode with smartphones and using these devices to check the items' prices and purchase the items online. A) Mobile Targeting B) Geofencing C) Psychographics D) Showrooming E) GPS marketing

D

________ implies a hierarchy in which individuals in the same class generally have the same degree of status, whereas members of other classes have either higher or lower status. A) Usage rate B) Subculture C) Family life cycle D) Social class E) Religion

D

93) Consumers in different social classes tend to vary in terms of values, product preferences, and buying habits.

True

Every segment that can be identified is inherently viable and profitable as a basis for targeted marketing.

False

Education, occupation, and income tend to be closely correlated.

True

In the MUSEUM MINI CASE, dividing museum attendees into frequent users, less frequent users, and non-users is known as ________. A) geographic segmentation B) benefit segmentation C) usage rate segmentation D) sociocultural segmentation E) psychographic segmentation

C

McDonald's slogans "You deserve a break today," "Make every time a good time," and "I'm Lovin' It" are examples of ________. A) premier position B) positioning against competition C) umbrella positioning D) key attribute positioning E) un-owned perception positioning

C

Acxiom databases track all of the following EXCEPT ________. A) weight B) vacation dreams C) household health worries D) education E) fingerprints

E

Beyond flavor and the presence or absence of sugar, Nicorette offers a gum that will whiten your teeth while satisfying your nicotine craving and helping you quit smoking. This gum has been positioned on the basis of ________. A) demographic segmentation B) family life cycle segmentation C) psychographic segmentation D) mass marketing E) benefit segmentation

E

Geographic characteristics serve as the core of almost all segmentations.

False

Targeting is the process of dividing a market into subsets of consumers with common needs or characteristics.

False

The sixth step in the positioning process is to create a positioning statement focused on the benefits and value that the product provides and use it to communicate with the target audiences.

True

Consumers' characteristics can be classed as either consumer-intrinsic or consumption-specific. In this context, consumption-specific features are attitudes and preferences toward specific products or buying situations. Examples of consumption-specific features include ________. A) demographics, gender, and benefits sought B) attitudes toward shopping, benefits sought in products, and frequency of leisure activities C) personality traits, lifestyles, and income D) education, usage situation, and gender E) personality traits, awareness of product alternatives, and attitudes toward political issues

B

Level of agreement with which of the following statements is associated with the Control of Life Psychographic Factor? A) I generally give gifts because people expect me to. B) I find it hard to speak in front of a group. C) The look of a website is an important factor in my buying decisions. D) My friends often ask me for advice on fashion. E) I am more conventional than experimental.

B

Most marketers prefer to target consumer segments that are relatively ________. A) small B) stable in terms of consumption patterns C) unpredictable D) inaccessible E) expensive to pursue

B

Marketers segment some populations on the basis of cultural heritage and ________ because members of the same culture tend to share the same values, beliefs, and customs. A) demographics B) social class C) ethnicity D) personality traits E) sociocultural values

C

When Healthy Choice positions its products as more nutritional than Italian sub sandwiches and prepared salads, which type of positioning is it using? A) umbrella positioning B) premier position C) positioning against competition D) un-owned position E) predictive positioning

C

Which of the following five segments, as characterized by the spectrum of green, is not particularly concerned about environmental issues, and limits their green product purchases to green products that are very conspicuous so they can be perceived as green by others? A) Alpha-Ecos B) Eco-Centrics C) Eco-Chics D) Economically Ecos E) Eco-Moms

C

Which of the following is NOT an example of the recent shift in traditional gender roles in product targeting and advertising? A) Van Gogh Blue Vodka targeting women B) Frito-Lay targeting women C) television shows targeting women D) department stores targeting men with grooming products E) Dove Men+Care

C

Yellow Tail wines changed its taglines from "Open for everything" and "Tails, you win" to "The go to" as part of its ________. A) premier position B) positioning against competition C) repositioning D) key attribute positioning E) umbrella positioning

C

In the MUSEUM MINI CASE, the museum's approach to promoting its new children's programming is best described as ________. A) countersegmentation B) mass marketing C) narrowcasting D) concentrated marketing E) demographic segmentation

E

Hardship in making buying decisions is more typical of older, less-educated consumers.

True

Positioning Joy (a fragrance brand) as "the costliest perfume in the world" is an example of ________. A) premier position B) positioning against competition C) umbrella positioning D) key attribute positioning E) un-owned perception positioning

A

Qantas targets four distinct segments: coach passengers, premium economy, business and first class, and uses ________ to clearly differentiate between the options targeted at each segment. A) positioning B) behavioral targeting C) geographic segmentation D) reverse targeting E) countersegmentation

A

In reference to consumer characteristics, ________ can be determined from direct questioning or observation and categorized by a simple objective measure, whereas ________ are abstract and can be determined only through more complex psychological and attitudinal questioning. A) consumption-based features; consumer-intrinsic features B) behavioral data; cognitive data C) product-specific features; consumption-based features D) cognitive data; behavioral data E) consumer-intrinsic features; consumption-based features

B

In the RENTAL CAR MINI CASE, Rosetta exercises ________ when it stocks more convertible cars in California than in New York. A) demographic segmentation B) geographic segmentation C) sociocultural segmentation D) psychographic segmentation E) usage-situation segmentation

B

Positioning Avis using the claim that "We're No. 2. We Try Harder." was an example of ________. A) premier position B) positioning against competition C) umbrella positioning D) key attribute positioning E) un-owned perception positioning

B

Research has shown that 25 percent of beer drinkers account for about 75 percent of all beer consumed. This is an example of a justification for ________ segmentation. A) benefit B) usage rate C) psychographic D) lifestyle E) usage-situation

B

In the VALS typology, Thinkers are motivated by ideals and tend to have high resources. They tend to be well educated and actively seek out information in the decision-making process. This segment tends to prefer ________. A) familiar products and established brands B) value over luxury, and tend to buy basic products C) products that offer durability, functionality, and value D) products that reflect cultivated tastes for upscale niche products and services E) premium products that demonstrate success to their peers

C

In the VALS typology, Innovators are successful, take-charge people with high self-esteem. Because they have such abundant resources, they exhibit all three primary motivations in varying degrees. They are change leaders and are the most receptive to new ideas and technologies. This segment tends to prefer ________. A) familiar products and established brands B) value over luxury, and tend to buy basic products C) products that offer durability, functionality, and value D) products that reflect cultivated tastes for upscale niche products and services E) premium products that demonstrate success to their peers

D

What is one of the benefits of offering many product versions that provide distinct benefits and "fill" as many positions as possible in a product category? A) lower need for shelf space B) lower production costs C) creating lower margins for the firm D) creating barriers to competitive entry and market penetration E) All of the above are benefits for product line extensions.

D

What is the FIFTH step in the positioning process? A) Create a positioning statement focused on the benefits and value that the product provides. B) Determine the target market's preferred combination of attributes. C) Define the market in which the product or brand competes, relevant buyers and competitors. D) Develop a distinctive, differentiating, value-based positioning concept. E) Research how consumers perceive competing offerings on relevant attributes.

D

When Fage Yogurt emphasizes its yogurt's thickness, which two positioning strategies was it using? A) key attribute and premier position B) premier position and umbrella positioning C) un-owned position and umbrella positioning D) key attribute and un-owned position E) key attribute and umbrella positioning

D

P & G is worried about the financial hardship of America's upper class, which amounts to 40% of the country's households.

False

In the CRUISE MINI CASE, Sunshine markets Adventure Cruises as a way to see multiple islands from the comfort of a single ship, alleviating the hassle of flying between islands and staying in a different hotel every couple of nights. Targeting consumers who view this convenience as appealing is an example of ________. A) countersegmentation B) cultural segmentation C) usage rate segmentation D) demographic segmentation E) benefit segmentation

E

Sunshine Cruise Lines markets Adventure Cruises as a way to see multiple islands from the comfort of a single ship, alleviating the hassle of flying between islands and staying in a different hotel every couple of nights. Targeting consumers who view this convenience as appealing is an example of ________. A) countersegmentation B) cultural segmentation C) usage rate segmentation D) demographic segmentation E) benefit segmentation

E

________ is felt by many marketers to be a strong indicator of the ability to pay for a product. A) Age B) Gender C) Occupation D) Education E) Income

E

As a base for market segmentation, ________ is/are commonly computed as a weighted index of education, occupation, and income. A) social class B) family life cycle C) personality traits D) sociocultural values E) psychographics

A

Lifestyles, also known as ________, consist of activities, interests, and opinions. A) psychographics B) demographics C) geodemographics D) personality traits E) benefit segmentation

A

Many marketers target the generation that is 18 to 34 years old, known as the ________. A) Millenial Generation B) Generation X C) Generation Z D) Net Gen E) Baby Boomers

A

The New York Times' positioning as "All the news that's fit to print" is an example of ________. A) premier position B) positioning against competition C) umbrella positioning D) key attribute positioning E) un-owned perception positioning

A

The image and unique identity of a product, service or brand in consumers' minds is called its ________. A) position B) perception C) segment D) target E) imposition

A

________ focuses on a brand's exclusivity to give the consumer a reason to buy the product. A) Premier position B) Positioning against competition C) Umbrella positioning D) Key attribute positioning E) Un-owned perception positioning

A

________ is constructing a map-like diagram representing consumers' perceptions of competing brands along relevant product attributes. A) Perceptual mapping B) Umbrella mapping C) Reposition mapping D) Attribute mapping E) Umbrella positioning

A

Another term for psychographic characteristics is ________. A) age B) lifestyles C) benefits sought D) use-situation factors E) use-related factors

B

In the VALS typology, ________ are motivated by ideals and tend to have low resources. They are generally slow to change as well as technology averse, and tend to prefer familiar products and established brands. A) Innovators B) Believers C) Thinkers D) Strivers E) Experiencers

B

PRIZM is an example of ________ segmentation. A) demographic B) geodemographic C) psychographic D) sociocultural E) use-related

B

Rosetta Car Rental exercises ________ when it stocks more convertible cars in California than in New York. A) demographic segmentation B) geographic segmentation C) sociocultural segmentation D) psychographic segmentation E) usage-situation segmentation

B

The VALS typology classifies the American adult population into eight distinctive subgroups based on their motivations and level of resources. The three primary motivations include ________. A) ideals, education, and achievement B) ideals, achievement, and self-expression C) knowledge, education, and self-expression D) independence, aptitude, and achievement E) aptitude, ideals, and self-expression

B

The most popular use of geography in strategic targeting is ________ — a hybrid segmentation scheme based on the premise that people who live close to one another are likely to have similar financial means, tastes, preferences, lifestyles, and consumption habits. A) countersegmentation B) geodemographics C) behavioral targeting D) social class E) psychographics

B

The process of dividing a market into distinct subsets of consumers with common needs or characteristics is known as ________. A) target marketing B) market segmentation C) mass marketing D) the marketing concept E) market evaluation

B

Traditionally, the ________ has been the focus of most marketing efforts. A) mother B) family C) individual D) child E) teen

B

What is the FOURTH step in the positioning process? A) Create a positioning statement focused on the benefits and value that the product provides. B) Determine the target market's preferred combination of attributes. C) Define the market in which the product or brand competes, relevant buyers and competitors. D) Develop a distinctive, differentiating, value-based positioning concept. E) Research how consumers perceive competing offerings on relevant attributes.

B

When Colgate offers Colgate Total, which provides 12-hours of germ fighting; Colgate Max Fresh, which fights bad breath; and Colgate Sensitive Pro-Relief for people who have sensitive gums, they are segmenting based on ________. A) usage rate B) benefits C) personality D) culture E) values

B

Which of the following is NOT one of the uses of perceptual maps? A) Show marketers how consumers perceive their brand in relation to the competition. B) Show consumers how they should perceive a marketer's brand in relation to the competition. C) Allow marketers to determine the direction for altering undesirable consumer perceptions of a marketer's brand. D) Allow marketers to find gaps, in the form of "un-owned" perceptual positions, that represent opportunities for new brands or products. E) All of the above are uses of perceptual maps.

B

________ are measures that predict consumers' future purchases on the basis of past buying information and other data. A) Showroom analytics B) Predictive analytics C) Geofencing analytics D) Social analytics E) Consumer spying analytics

B

________ is/are defined by computing an index based on three quantifiable variables: income, education and occupation. A) Demographics B) Social class C) Psychographics D) Personality traits E) Sociocultural values

B

In the CRUISE MINI CASE, of the eight VALS segments, Sunshine is most likely targeting ________ with its new Adventure Cruises. A) Makers B) Survivors C) Experiencers D) Strivers E) Believers

C

Peter wants to segment the target audience for his frozen yogurt shop based on benefits sought. Unlike demographic variables, the benefits sought variable is difficult to measure, so it is not as ________. A) profitable B) stable in terms of consumption patterns C) identifiable D) inaccessible E) expensive to pursue

C

The ________ of a product or service is the process by which a company creates a distinct image and identity for its products, services and brands in consumers' minds. A) segmentation B) target C) positioning D) psychographic inventory E) concentrated marketing strategy

C

The segment of online consumers that uses the Internet 20.7 hours per week, engages in some browsing and shopping but is a very heavy user of blogging, chatting, video streaming, and downloading, is known as ________. A) Basic Communications B) Lurking Shoppers C) Social Strivers D) Sports Fans E) Value-Added Shoppers

C

What was the ultimate result of Oldsmobile's repositioning strategy, which tried to shift perceptions of Oldsmobile as an "old folks" car? A) Oldsmobile shifted the image and identity of its brand, but did not sell more units. B) Oldsmobile sold more units, but did not shift the image and identity of its brand. C) Oldsmobile did not shift the image and identity of its brand, and GM stopped producing the brand. D) Oldsmobile did not shift the image and identity of its brand, so GM tried a different position. E) Oldsmobile shifted the image and identity of its brand and sold more units.

C

________ are bits of computer code placed on browsers to keep track of online activity. A) Data minerals B) Candies C) Cookies D) Binodes E) Geofences

C

________ is a statement or slogan that describes a company's character without referring to its specific branded products. A) Premier position B) Positioning against competition C) Umbrella positioning D) Key attribute positioning E) Un-owned perception positioning

C

________ is the process by which a company intentionally changes the distinct image and identity that its product or brand occupies in consumers' minds. A) Premier position B) Positioning against competition C) Repositioning D) Key attribute positioning E) Umbrella positioning

C

Consumers' characteristics can be classed as either behavioral or cognitive. In this context, behavioral data can be determined from direct questioning and categorized by a single objective measure. Examples of behavioral data include ________. A) demographics, gender, and benefits wanted B) usage rate, level of involvement, and psychographics C) personality traits, lifestyles, and family life cycle D) education, quantity of product purchased, and gender E) level of involvement, awareness of product alternatives, and benefits wanted

D

Marketers of many products such as soup, laundry detergent, beer, and dog food have found that a relatively small group of heavy users accounts for a disproportionately large percentage of the total product usage. Targeting these heavy users specifically is an example of ________. A) benefit-based segmentation B) demographic segmentation C) cross-cultural segmentation D) usage rate segmentation E) usage situation segmentation

D

Positioning Bounty, a paper towels brand, as "the quicker picker upper" is an example of ________. A) premier position B) positioning against competition C) umbrella positioning D) key attribute positioning E) un-owned perception positioning

D

Which of the following is NOT one of the characteristics of an effective target? A) identifiable B) sizeable C) reachable D) inaccessible E) congruent with the marketer's objectives and resources

D

) In the VALS typology, Achievers are motivated by achievement and tend to have high resources. They have goal-oriented lifestyles that center on family and career. This segment tends to prefer ________. A) familiar products and established brands B) value over luxury, and tend to buy basic products C) products that offer durability, functionality, and value D) products that reflect cultivated tastes for upscale niche products and services E) premium products that demonstrate success to their peers

E

Consumers' characteristics can be classed as either behavioral or cognitive. In this context, cognitive factors are abstract, can be determined only through more complex psychological and attitudinal questioning, and generally have no single, universal definitions. Examples of cognitive factors include ________. A) demographics, gender, and benefits wanted B) usage rate, level of involvement, and education C) personality traits, lifestyles, and gender D) education, usage situation, and social class E) cultural values, personality traits, and benefits sought

E

Home Depot uses its individual customer purchase history to design customized ads. This is an example of ________. A) psychographic segmentation B) geodemographic segmentation C) countersegmentation D) mass marketing E) behavioral targeting

E

In the MUSEUM MINI CASE, the most important differentiating factor between frequent and less frequent users is ________. A) income B) age C) gender D) education E) stage of family life cycle

E

What is the THIRD step in the positioning process? A) Create a positioning statement focused on the benefits and value that the product provides. B) Determine the target market's preferred combination of attributes. C) Define the market in which the product or brand competes, relevant buyers and competitors. D) Develop a distinctive, differentiating, value-based positioning concept. E) Research how consumers perceive competing offerings on relevant attributes.

E

Culturally distinct segments cannot be prospects for the same product and can only be targeted efficiently with unique promotional appeals for unique products.

False

Long stays and repeat visits to a product's website are not related to high levels of product and purchase involvement or purchase intentions.

False

Showrooming sends promotional alerts to the smartphones of customers who opt-in when the customers enter or near the store.

False

Social class is commonly computed as a weighted index of age, income, and education.

False

"Tourism of Doom" characterizes a travel industry market segment that pays high prices to travel to places that are threatened due to climate change.

True

94) The family life cycle is a classification of the phases most families go through and each stage represents an important target segment to many marketers.

True

Effectively catering to the distinct needs of consumers by offering them clearly differentiated products involves much higher research, production, advertising, and distribution costs.

True

Marketers use segmentation research to identify the most appropriate media in which to place advertisements.

True

The traditional family life cycle will go through the following stages: bachelorhood, honeymooners, parenthood, post-parenthood and dissolution.

True