Chapter 7

128) A product's position is based on important attributes as perceived by ________. A) suppliers B) competitors C) channel members D) target consumers E) resellers

D) target consumers

136) The last step in developing a positioning strategy is to ________. A) evaluate responses and modify as needed B) identify segmentation variables C) analyze the competitors' positions in the marketplace D) describe a product with a competitive advantage E) finalize the marketing mix

A) evaluate responses and modify as needed

28) The supermarket sells boxes of pink diapers and blue diapers. This is an example of segmenting by ________. A) gender B) age C) ethnicity D) social class E) generation

A) gender

38) Your firm has decided to tailor its products and services to meet local market demands. A good approach to use would be ________ segmentation. A) geographic B) psychographic C) usage D) positioning E) social class

A) geographic

98) When the size and purchasing power of a target segment can be determined, the segment is ________. A) measurable B) accessible C) substantial D) differentiable E) profitable

A) measurable

14) Age, gender, place of residence, and income are all examples of ________. A) segmentation variables B) positioning strategies C) market fragment strategies D) psychographics E) targeting strategies

A) segmentation variables

101) Mass marketers such as Walmart often ignore market segment differences and target the whole market with one offer. What is this approach to targeting? A) undifferentiated targeting B) differentiated targeting C) target marketing D) concentrated targeting E) mass customization

A) undifferentiated targeting

4) Which of the following is NOT part of a target marketing strategy? A) dividing the market into segments based on customer characteristics B) identifying a market that is likely to buy a product C) selecting one or more segments as target markets D) developing a product to meet the needs of a specific market segment E) positioning a product

B) identifying a market that is likely to buy a product

48) ________ segmentation variables classify consumers on the basis of how they act toward, feel about, or use a product. A) Demographic B) Behavioral C) Geodemographic D) Socioeconomic E) Psychographic

B) Behavioral

23) Which generation was referred to as "busters" and was thought of as slackers who are cynical about marketing? A) Generation Y B) Generation X C) Baby Boomers D) Millennials E) Generation Z

B) Generation X

127) ________ means developing a marketing strategy aimed at influencing how a particular market segment perceives a good or service in comparison to the competition. A) Concentrated targeting B) Positioning C) Benefit segmentation D) Mass customization E) Customization

B) Positioning

50) The 80/20 rule is most directly related to ________ segmentation. A) demographic B) behavioral C) geodemographic D) socioeconomic E) psychographic

B) behavioral

37) The management practice of ________ involves actively seeking people of different races, sexes, ethnic groups, and religions in an organization's employees, customers, suppliers, and distribution channel partners. A) geodemography B) cultural diversity C) ethnic segmentation D) psychography E) social networking

B) cultural diversity

106) Which of the following is the narrowest strategy? A) undifferentiated targeting B) customized marketing C) differentiated targeting D) concentrated targeting E) mass marketing

B) customized marketing

13) Which of the following is the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics? A) acculturation B) segmentation C) market fragmentation D) targeting E) positioning

B) segmentation

5) What are the steps, in order, of the target marketing process? A) segmentation, positioning, and targeting B) segmentation, targeting, and positioning C) targeting, segmentation, and positioning D) targeting, positioning, and segmentation E) positioning, segmentation, and targeting

B) segmentation, targeting, and positioning

100) A company that uses a(n) ________ targeting strategy is appealing to a broad spectrum of people. A) fragmented B) undifferentiated C) concentrated D) differentiated E) customized

B) undifferentiated

113) Jolene Enterprises mass produces an all-purpose floor cleaner, mass distributes it, and mass promotes it. This firm uses a(n) ________. A) segmented strategy B) undifferentiated targeting strategy C) focused targeting strategy D) differentiated targeting strategy E) concentrated targeting strategy

B) undifferentiated targeting strategy

52) According to the 80/20 rule, which of the following is true? A) 80 percent of a product's customers account for 20 percent of the product's marketing expenditures. B) 20 percent of a product's customers account for 80 percent of the product's marketing expenditures. C) 80 percent of a product's sales come from 20 percent of the product's purchasers. D) 80 percent of a product's marketing cost should be equal to 20 percent of the firm's total marketing budget. E) 80 percent of a product's market should be consumers who are 20 or older.

C) 80 percent of a product's sales come from 20 percent of the product's purchasers.

26) Members of which generation were born in the years immediately following the end of World War II? A) Echo Boomers B) Millennials C) Baby Boomers D) the Baby Bust E) Generation Z

C) Baby Boomers

24) The group of American consumers born between 1965 and 1978 are called ________. A) Baby Boomers B) Echo Boomers C) Generation X D) Generation Y E) Generation Z

C) Generation X

21) The group of American consumers born between 1979 and 1994 is often called ________. A) the baby bust B) the leading edge C) Generation Y D) tweens E) Generation X

C) Generation Y

29) Which of the following is a true statement about trends related to gender segmentation? A) The education and income gap between men and women closed in the latest recession. B) In the recent recession, women held about three in four of the jobs that were lost. C) Men are now increasingly likely to marry women with more education and income than they have. D) In recent decades, the economic gains of marriage have been greater for women than for men. E) Women are now increasingly likely to marry men with more education and income than they have.

C) Men are now increasingly likely to marry women with more education and income than they have.

130) The first step in developing a positioning strategy is to ________. A) set the marketing communications budget B) identify segmentation variables C) analyze the competitors' positions in the marketplace D) describe a product with a competitive advantage E) create target markets

C) analyze the competitors' positions in the marketplace

25) Baby Boomers ________. A) were born between 1965 and 1978 B) are currently in their 30s and 40s C) are important to marketers because of the size and wealth of the segment D) are 75 or older E) are the parents of Generation X, not Generation Y

C) are important to marketers because of the size and wealth of the segment

105) An industrial manufacturer that works with one or a few large clients and develops products that only these clients will use is most likely to implement a(n) ________ strategy. A) undifferentiated targeting B) homogeneous C) customized marketing D) bottom-of-the-pyramid E) differentiated targeting

C) customized marketing

33) African Americans, Hispanic Americans, and Asian Americans are all examples of ________ segments. A) life cycle B) psychographic C) ethnic group D) social class E) geocoding

C) ethnic group

31) Because family needs and expenditures change over time, marketers may consumers by ________. A) age B) generation C) family life cycle stage D) social class E) psychographics

C) family life cycle stage

95) Which of the following is the process of evaluating and selecting the most viable market segment to enter? A) segmentation B) differentiation C) targeting D) market mixing E) positioning

C) targeting

3) Which of the following statements about the steps in the target marketing process is true? A) The first step in the target marketing process is setting marketing objectives. B) There are four steps in the target marketing process. C) The second step in the target marketing process is the identification of all segmentation variables. D) The final step in the target marketing process is positioning. E) The target marketing process is not related to positioning.

D) The final step in the target marketing process is positioning.

57) Demographic variables are so frequently used in market segmentation because they ________. A) create smaller segments than other methods do B) create more easily reached segments than other methods do C) do not involve stereotypes D) are easy to measure in comparison to many other methods E) involve fewer attributes to consider than other methods do

D) are easy to measure in comparison to many other methods

58) In developing a new shoe, Reebok targeted the youth market. It used ________ segmentation to define its target market. A) lifestyle B) behavioral C) socioeconomic D) demographic E) psychographic

D) demographic

139) A perceptual map is used to ________. A) compare and contrast consumer psychographic segments B) create consumer cross-tabulations for marketing research C) locate consumers within a geographic information system D) determine how consumers position products in relation to one another E) identify the critical stage of the targeting process for the marketer

D) determine how consumers position products in relation to one another

103) Using a ________ targeting strategy, a company develops one or more products for each of several customer groups with different product needs. A) fragmented B) homogeneous C) custom D) differentiated E) mass customization

D) differentiated

59) A retailer that wants to target prospective grooms within six months of their marriage is using ________ segmentation to define its target market. A) lifestyle B) behavioral C) socioeconomic D) family life cycle E) ethnicity

D) family life cycle

109) When marketers at P&G selected Generation Y, a demographic that includes college students, as an untapped group of potential customers for their Febreze line of products, they were executing which of the following? A) market segmenting B) undifferentiated targeting C) differentiation D) targeting E) positioning

D) targeting

102) Which of the following best explains why a company would adopt an undifferentiated targeting strategy? A) to more efficiently focus on customer relationship management B) to remove the need for positioning C) to move a product to the next stage of its product life cycle D) to take advantage of economies of scale E) to reach the underserved "bottom-of-the-pyramid" consumers

D) to take advantage of economies of scale

19) The group of American consumers born after 1994 is often called ________. A) Millennials B) Generation Y C) Generation X D) busters E) Generation Z

E) Generation Z

20) Which of the following groups are referred to as Digital Natives and grew up during the "Great Recession"? A) Millennials B) Generation Y C) Generation X D) busters E) Generation Z

E) Generation Z

42) ________ variables segment markets in terms of shared activities, interests, and opinions. A) Demographic B) Ethnographic C) Geodemographic D) Socioeconomic E) Psychographic

E) Psychographic

51) According to the long tail approach to selling, ________. A) the Internet provides reduced opportunities for segmenting markets B) companies can make the most money by focusing on the "bottom-of-pyramid" market C) companies should focus on the 20 percent of customers who purchase the greatest volume of their product D) companies should focus on the 80 percent of customers who purchase the greatest volume of their product E) companies can make money by selling small amounts of items that only a few people want

E) companies can make money by selling small amounts of items that only a few people want

104) When a firm offers one or more products to a single segment, it is using a ________ strategy. A) fragmented B) homogeneous C) custom marketing D) mass customization E) concentrated targeting

E) concentrated targeting

1) People's diverse interests and backgrounds divide them into numerous groups with distinct needs and wants, a condition most accurately described as ________. A) market aggregation B) market positioning C) economic aggregation D) differentiation E) market fragmentation

E) market fragmentation

15) Which of the following best defines demographics? A) statistics that can be used to segment populations on the basis of what people do with a product B) statistics that can be used to segment populations on the basis of when people use a product C) qualitative data that can be used to explain why seemingly homogeneous consumer groups do not share core characteristics D) statistics that can be used to segment populations on the basis of shared attitudes, opinions, and interests E) statistics that measure observable aspects of a population

E) statistics that measure observable aspects of a population