MAR6805 Chapter 7

Everything else being equal,________ segmentation might lead a firm to offer its products based on some anticipated future payoff from the consumer. A) income B) geographic C) educational D) lifestyle E) gender

C) educational

Mika believes that the only luxury car anyone should ever buy is a BMW. Whenever he sees the BMW logo, he knows that car is a leader in the market. What source of differentiation has BMW achieved? A) personnel B) convenience C) image D) price E) service

C) image

When a company only hires employees who are competent, reliable, courteous, credible, responsive, and able to communicate clearly, it achieves________ leadership as a source of differentiation. A) personnel B) convenience C) image D) price E) service

A) personnel

________ segmentation is sometimes referred to as segmentation by lifestyle or values. A) Occupational B) Psychographic C) Geographic D) Educational E) Gender

B) Psychographic

A marketing manager using VALS is interested in________ segmentation. A) geographic B) psychographic C) geodemographic D) occupational E) educational

B) psychographic

Social class has declined as a method of segmentation as a result of________. A) higher education rates in the United States B) readily available credit flattening the classes C) the increase in minority consumers D) stores appealing to everyone E) wealthy individuals spending lavishly on luxury products

B) readily available credit flattening the classes

An interior design company has offices in Santa Fe, New Mexico; Butte, Montana; and Chicago, Illinois. Its designers use different products and designs in each place because clients' tastes tend to be different depending on where they live. This illustrates________ segmentation. A) social class B) income C) family and household D) demographic E) geographic

E) geographic

The region, the density of the population, and the size of the population are various approaches to use in________. A) positioning B) differentiation C) democratic segmentation D) population parameter estimation E) geographic segmentation

E) geographic segmentation

When a company tries to constantly develop the "next new thing," it is trying to establish________ leadership as a source of differentiation. A) service B) image C) price D) personnel E) innovative

E) innovative

Positioning relies on the communication of one or more sources of value to customers in a way that the customer can easily make the connection between the________. A) cost of the product and the quality B) way the 4Ps of the marketing mix work with one another C) customer's needs and wants and what the product has to offer D) product and its advertising E) salesperson and the customer at a personal level

C) customer's needs and wants and what the product has to offer D) product and its advertising

White Eagle Country Club attracts customers who like to golf, swim, and eat out, so it emphasizes those features to prospective members. This illustrates________ segmentation. A) behavioral B) income C) geographic D) gender E) educational

A) behavioral

Segmentation by________ focuses on why people buy what they buy. A) benefits sought B) usage rate C) demographic D) social class E) occasion

A) benefits sought

Cateya was born in 2001. She is a member of________. A) the baby boomer generation B) the millennial generation C) Generation Y D) Generation X E) Generation Z

E) Generation Z

Which question about market segmentation relates to creation and execution of different marketing strategies to the different submarkets identified? A) Can the segment be reached in terms of physical product? B) Is the segment of sufficient size to warrant investing in a unique value-creating strategy for that segment as a target market? C) Is the segment readily identifiable and can it be measured? D) Can the segment be reached in order to deliver the value of the product, and subsequently can it be effectively and efficiently managed? E) Is the segment clearly differentiated on one or more important dimensions when communicating the value of the product?

E) Is the segment clearly differentiated on one or more important dimensions when communicating the value of the product?

The ability to get secondary and/or primary data on a market being considered for segmentation relates to which question about segmentation? A) Can the segment be reached in terms of physical product? B) Is the segment of sufficient size to warrant investing in a unique value-creating strategy for that segment as a target market? C) Is the segment readily identifiable and can it be measured? D) Can the segment be reached in order to deliver the value of the product, and subsequently can it be effectively and efficiently managed? E) Is the segment clearly differentiated on one or more important dimensions when communicating the value of the product?

C) Is the segment readily identifiable and can it be measured?

Differentiated target marketing means that a company is________. A) offering different prices for different markets B) developing different products for the same market C) developing different value offerings for different targeted segments D) using the push and pull strategy to differentiate markets E) using a one-market strategy for different markets

C) developing different value offerings for different targeted segments

Offering credit cards to high school seniors is an example of________ segmentation. A) income B) occupational C) educational D) lifestyle E) gender

C) educational

The________ market segment is about 12 percent of the U.S. population and is not growing rapidly. A) African-American B) Hispanic C) Asian-American D) Caucasian E) Indian-American

A) African-American

At about 17 percent of the U.S. population,________ remain the largest minority group. A) Hispanics/Latinos B) Asians C) Indians D) Native Americans E) African Americans

A) Hispanics/Latinos

Age is a commonly used method of segmentation. Age alone, however, may be dangerous because________. A) grouping customers into one group is an approach that fails to consider the vast differences in other important variables B) chronological age and psychological age are the same C) older consumers exhibit very few differences from person to person on things such as income, mobility, and work status D) this approach ignores chronological age E) this approach presumes irregularity of consumer needs and wants by age

A) grouping customers into one group is an approach that fails to consider the vast differences in other important variables

Generation X is often referred to as the________ generation. A) spoiled B) nonconsumption C) millennial D) baby bust E) optimistic

D) baby bust

In marketing, differentiation means________. A) consumer choices remain similar around the globe B) each age segment views products exactly the same C) products need to appear to be different from one another to be successful in the marketplace D) communicating and delivering value in different ways to different customer groups E) evaluating different market segments and deciding which shows the most promise for development

D) communicating and delivering value in different ways to different customer

In the context of positioning errors, when consumers have only a vague idea about the company and its products, and do not perceive any real differentiation, it is called________. A) repositioning B) overpositioning C) underpositioning D) uninformed positioning E) fuzzy positioning

C) underpositioning

Starbucks has placed stores every few blocks all over the city, which makes it difficult for the competition to get a foothold. Starbucks is focusing on________ leadership as a source of differentiation. A) service B) image C) price D) personnel E) convenience

E) convenience

Millie prefers to stay at the Omni Hotel rather than the Embassy Suites because she knows the Omni provides high-end bedding, luxurious robes and toiletry products for every customer. What differentiation factor is affecting Millie's decision? A) innovative B) convenience C) price D) personnel E) service

E) service

What is one of the basic principles behind segmentation? A) All customers are alike. B) Subgroups of customers are not similar. C) Subgroups will be smaller and more homogeneous than the overall market. D) Members of a heterogeneous market cannot allow for dividing the market into subgroups. E) In an undifferentiated market, each person has unique needs and wants.

C) Subgroups will be smaller and more homogeneous than the overall market.

The fashion apparel and skin care industries are candidates for________ products that appeal to those who do not fit the traditional binary definitions of male and female A) sex-typed B) stereotypical C) gender-bending D) more rigid E) gender-free

C) gender-bending

Hakim buys most of his groceries at Aldi because it has the cheapest groceries even though he has to bring his own bags and bag his own groceries. Aldi differentiates itself through________ leadership. A) innovative B) image C) price D) personnel E) service

C) price

Sociologists look for defining events such as major economic upheaval, wars, and________ as triggers for generational change. A) political stability B) marketing opportunities C) sociocultural revolution D) foreign policy changes E) population growth

C) sociocultural revolution

Which statement is TRUE about income segmentation? A) It is usually analyzed in incremental ranges. B) It is based on a very quantifiable geographic variable. C) Marketers seldom use income as a segmenting approach. D) It is time consuming to study consumers' buying habits based on their income. E) There is a direct correlation between income and price preferences.

A) It is usually analyzed in incremental ranges.

Segmenting markets means that a company is________. A) dividing the market into meaningful smaller markets based upon common characteristics B) selecting the markets to compete against in the marketplace C) selecting a corporate position to communicate to potential customers D) identifying and calculating the churn rate in different markets E) identifying the customers who have frequently purchased competitor's products or services

A) dividing the market into meaningful smaller markets based upon common characteristics

Primary target markets differ from secondary and tertiary target markets by the________. A) expected level of ROI derived from the market B) difficulty of attacking the market C) consumers' ability to buy multiple units D) advertising effort needed for the market E) average age of the consumers

A) expected level of ROI derived from the market B) difficulty of attacking the market

Positioning strategy is a process that often starts with________, which help(s) develop a set of attributes for further analysis. A) focus groups B) surveys C) case studies D) panel research E) interviews

A) focus groups

Demographic segmentation is best described as using characteristics of________ to identify markets. A) human populations B) geography C) economics D) political stability E) government regulations

A) human populations

NewTech Inc. is a manufacturer of PCs, and most of its revenue is generated by selling PCs to consumers. However, the company is struggling to gain new customers for its other product lines such as tablets and smartphones because they see it as only a computer company. In this scenario, NewTech is suffering from the error of________. A) underpositioning B) doubtful positioning C) overpositioning D) confused positioning E) repositioning

A) overpositioning

Once market segments have been defined and analyzed and target markets have been selected for development, the firm must turn its attention to creating, communicating, delivering, and exchanging offerings that have value to the target markets. This process is known as________. A) positioning B) target marketing C) niche marketing D) outsourcing E) selling

A) positioning

The local sandwich shop has always sold calorie-laden sandwiches and recently introduced six new sandwiches featuring vegetables and lower-calorie meats and cheeses to appeal to health-conscious customers. What strategy is the sandwich shop pursuing? A) repositioning B) one-to-one marketing C) concentration D) tertiary target marketing E) 80/20 rule

A) repositioning

HerboLux, a company that sells herbal soaps, has failed to increase its sales, as consumers could not understand how soaps made by HerboLux were different or better than other herbal soaps available in the market. In this scenario, HerboLux is suffering from the positioning error of________. A) underpositioning B) doubtful positioning C) overpositioning D) confused positioning E) repositioning

A) underpositioning

Which statement about geographic segmentation is accurate? A) It divides consumer groups based on a variety of readily measurable descriptive factors about the group. B) In most instances, it is an insufficient criterion in and of itself. C) It does not consider climate while segmenting markets. D) It does not consider the size of population while segmenting markets. E) It is useful because the demand for all kinds of products is determined by where a person lives.

B) In most instances, it is an insufficient criterion in and of itself.

Which statement about repositioning is accurate? A) It involves targeting a large portion of a small market. B) It involves understanding the marketing mix approach necessary to change consumer perceptions of the product. C) It is popularly called a focus strategy or a niche strategy. D) It involves developing different value offerings for different targeted segments. E) It advocates that firms should direct energy and resources into establishing a learning relationship with each customer.

B) It involves understanding the marketing mix approach necessary to change consumer perceptions of the product.

Target marketing is the process by which________. A) the market is divided into cohesive groups B) a company evaluates market segments and decides which ones have the most potential for development C) a company chooses which advertising strategy to use D) the customer groups are evaluated on the basis of high or low churn to see which is the most profitable E) a company collects cookies to track everyone who visits its website

B) a company evaluates market segments and decides which ones have the most potential for development

When a retail chain sells winter coats, it sends them to different stores at different times of the year. Which approach to geographic segmentation in the United States does this scenario exemplify? A) by region B) by climate C) by size of population D) by growth in population E) by density of population

B) by climate

Netflix uses an algorithm that "learns" a customer's preferences so it can recommend content in a customized fashion. This illustrates________. A) concentrated target marketing B) one-to-one marketing C) differentiated marketing D) undifferentiated marketing E) shotgun marketing

B) one-to-one marketing

Organizations communicate one or more sources of value to customers in a way that the customer can easily make the connection between his or her needs and wants and what the product has to offer. Execution of this approach is referred to as a firm's________ strategy. A) segmentation B) positioning C) production D) sales E) distribution

B) positioning

An approach to segmenting consumer markets is________ segmentation, which relies on consumer variables such as personality and AIOs (activities, interests, and opinions) to segment a market. A) occupational B) psychographic C) geographic D) educational E) gender

B) psychographic

Concentrated target marketing is often used by________. A) large companies to dominate a market B) start-up firms to enter a market as a focus player C) multinational companies to enter a new market D) software consulting firms that use Internet marketing E) large e-commerce businesses to attract new customers

B) start-up firms to enter a market as a focus player

Maxine was born in 1940. She is a member of________. A) the baby boomer generation B) the silent generation C) Generation Y D) Generation X E) the millennial generation

B) the silent generation

Companies sometimes pick a one-market strategy. This marketing approach is called________. A) mass approach B) undifferentiated target marketing C) differentiated strategy D) low-cost approach E) efficiency marketing

B) undifferentiated target marketing

While developing a segmentation approach, the brand manager of a soft drinks manufacturing company says that a specific segment has sufficient size. He means that the market________. A) has a large enough television audience to be worth considering B) is reachable C) can provide a positive return on investment D) has many customers in it E) is homogeneous

C) can provide a positive return on investment

In the context of positioning errors, when the claims made for the product or brand are not regarded as credible by consumers, it is called________. A) underpositioning B) repositioning C) doubtful positioning D) fuzzy positioning E) overpositioning

C) doubtful positioning

A marketing manager using the database called PRIZM is interested in________ segmentation. A) geographic B) psychographic C) geodemographic D) occupational E) educational

C) geodemographic

Marketers use geographic segmentation when________. A) certain geographic regions have more diverse populations B) geography determines one's likes and dislikes C) there is evidence that consumers respond differently to marketing strategies and programs based on where they live D) there is a strong demand for the products and services of the company in some geographic regions E) people in some regions are richer than people in other regions

C) there is evidence that consumers respond differently to marketing strategies and programs based on where they live

________ segmentation recognizes that there may be a number of consistent needs and wants demonstrated by consumers based on what type of job they have. A) Occupational B) Social C) Age D) Gender E) Educational

Correct answer: A Explanation: Occupational segmentation recognizes that there may be a number of consistent needs and wants demonstrated by consumers based on what type of job they have.

American credit card companies would like to offer their services to people in Angola. However, they are finding it difficult because of language barriers and infrastructure challenges. These issues are related to which question about market segmentation? A) Do the people in this market segment have access to sufficient financial resources? B) Is the segment of sufficient size to warrant investing in a unique value-creating strategy for that segment as a target market? C) Is the segment readily identifiable and can it be measured? D) Can the segment be reached in order to deliver the value of the product, and subsequently can it be effectively and efficiently managed? E) Is the segment clearly differentiated on one or more important dimensions when communicating the value of the product?

D) Can the segment be reached in order to deliver the value of the product, and subsequently can it be effectively and efficiently managed?

Katie was born in 1970. She is environmentally conscious and media-savvy. She is a member of which generational group? A) baby boomer generation B) GI generation C) silent generation D) Generation X E) Generation Y

D) Generation X

Which criterion for market segmentation is least likely to enable successful segmentation? A) It should be measurable. B) It should be of sufficient size. C) It should be readily identifiable. D) It should be undifferentiated. E) It should be reachable in terms of communication.

D) It should be undifferentiated.

21) Which statement is TRUE of the baby boomers' generational group? A) The baby boomers have been traditionally ignored by the marketing managers. B) The majority of baby boomers are in their early 80s. C) The baby boomers have an outdated outlook of life and the future. D) The baby boomers think that they don't age. E) The baby boomers will have limited impact on marketing decisions in the future.

D) The baby boomers think that they don't age.

In the 1970s, Michelob beer changed its advertising messages frequently and saw sales plummet. Slogans like "Weekends were made for Michelob," "Put a little weekend into your weekday," and "Special times deserve a special beer" had consumers checking their calendars to find the right time to drink a Michelob. Michelob was suffering from the positioning error of________. A) underpositioning B) doubtful positioning C) overpositioning D) confused positioning E) repositioning

D) confused positioning

Demographic segmentation is one of the most popular segmentation approaches because________. A) it takes into account the climate of different regions. B) the needs and wants of customers remain constant based on demographic differences C) it uses easily identifiable characteristics of human populations such as lifestyle D) it is relatively easy to measure the variables used in this approach to segmentation E) the demand for all kinds of products is determined by where a person lives

D) it is relatively easy to measure the variables used in this approach to segmentation

Advertisements with messages like "Orange juice—It's not just for breakfast anymore!" or "Soup can be a delicious way to start a cold winter's day," are using segmentation by________. A) benefits sought B) lifestyle C) psychographic D) usage patterns E) geographic

D) usage patterns

Fred felt that if he could "get into the head" of his potential customers by tapping into their experiences, he could find a way to entice more of them to use his product. What psychographic segmentation measure could he use to accomplish this? A) PRIZM B) 4Ps C) perceptual map D) Myers-Briggs E) VALS

E) VALS

Pamela only bought her cars from Lexis because they made it so easy to get them serviced by picking her car up and bringing it back to her. Lexis shows________ leadership. A) innovative B) image C) price D) personnel E) service

E) service