Marketing chapter 7

true or false The relative power of buyers affects segment attractiveness.

True

Benefit segmentation requires finding the major benefits people look for in a product class, the kinds of people who look for each benefit, and the major brands that deliver each benefit.

True

Psychographic segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics

True

True or False A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.

True

True or False In evaluating different market segments, a firm should look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources.

True

What is differentiation?

Differentiation refers to differentiating the market offering to create superior customer value.

When segmenting by user status, markets are segmented into light, medium, and heavy product users.

false

In the context of behavioral segmentation, who among the following is a potential user? A) Anita, who recently had a baby B) Peter, who recently changed his job C) Mary, who enrolled as a graduate student in a university last year D) Gina, who opened a dental clinic in Orange County E) Raj, who is planning a trip to Hawaii with friends

A) Anita, who recently had a baby

________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product. A) Behavioral B) Psychographic C) Age and life cycle D) Gender E) Geographic

A) Behavioral

Which of the following is true about the concentrated marketing strategy? A) Companies that rely on a few segments for all of their business will suffer if a segment turns sour. B) Concentrated marketing is not profitable for most firms. C) Niche marketing involves few risks for most firms. D) Concentrated marketing involves going after a small share of a large market. E) The Internet has limited the use and benefits of niche marketing

A) Companies that rely on a few segments for all of their business will suffer if a segment turns sour.

________ segmentation assumes that nations close to one another will have many common traits and behaviors. A) Geographic B) Occasion C) Psychographic D) Benefit E) Demographic

A) Geographic

To the extent that a company can differentiate and position itself as providing superior customer value, it gains ________. A) competitive advantage B) complementary assets C) service life D) core competencies E) contingent liability

A) competitive advantage

A catalog retailer in the United States has identified African American professionals between the ages of 35 and 45 as a group of potential customers for its products. The retailer plans to direct its marketing efforts toward this group of consumers. Which of the following market segmentation variables did the catalog retailer most likely use? A) demographic B) psychographic C) user status D) loyalty status E) usage rate

A) demographic

"Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods." This is an example of ________. A) geographic segmentation B) product diversification C) branding D) psychographic segmentation E) demographic segmentation

A) geographic segmentation

Even when competing offers look the same, buyers may perceive a difference based on ________ differentiation. A) image B) people C) price D) channel E) services

A) image

Venus Inc., a company designing and marketing branded diamond jewelry, targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________ segmentation. A) intermarket B) loyalty C) life-cycle D) income E) psychographic

A) intermarket

Andrew Levitt runs a retail store in Norristown. Andrew's store stocks cold weather products as Norristown mostly has sub-zero temperatures. Which of the following is evident here? A) local marketing B) concentrated marketing C) segmented marketing D) mass marketing E) direct marketing

A) local marketing

When the size, purchasing power, and profile of a market segment can be calculated, the market is ________. A) measurable B) profitable C) substantial D) actionable E) competitive

A) measurable

Different soft drinks target different personalities. This is an example of ________ segmentation. A) psychographic B) demographic C) occasion D) life-cycle E) benefits

A) psychographic

Which of the following is true about behavioral segmentation on the basis of the loyalty variable? A) Consumers tend to pay more for products that are targeted at their respective age group or generation. B) By looking at customers who are shifting away from its brand, a company can learn about its marketing weaknesses and take actions to correct them. C) Highly loyal customers of a brand are less likely to engage in word-of-mouth publicity than those who are not. D) Completely loyal customers of a brand are typically loyal to two or three brands of a given product. E) Only consumers who seek premium or luxury services are subjected to behavioral segmentation based on the loyalty variable.

B) By looking at customers who are shifting away from its brand, a company can learn about its marketing weaknesses and take actions to correct them.

________ involves actually distinguishing the firm's market offering to create superior customer value. A) Mass customization B) Differentiation C) Market segmentation D) Diversifying E) Targeting

B) Differentiation

________ segmentation has long been used in clothing, cosmetics, toiletries, and magazines. A) Behavioral B) Gender C) Benefit D) Occasion E) Geographic

B) Gender

________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods. A) Benefit segmentation B) Geographic segmentation C) Demographic segmentation D) Psychographic segmentation E) Occasion segmentation

B) Geographic segmentation

________ positioning involves meeting consumers' lower performance or quality requirements at a much lower price. A) More for less B) Less for much less C) Same for less D) More for more E) More for the same

B) Less for much less

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. A) Mass customization B) Positioning C) Segmentation D) Differentiation E) Targeting

B) Positioning

________ marketing is more suited for uniform products, such as grapefruit or steel. A) Niche B) Undifferentiated C) One-to-one D) Trigger-based E) Local

B) Undifferentiated

Bailey's Burgers promotes the Bailey's Jumbo Burger as a fun snack for teens and young adults. In this instance, Bailey's Burgers is practicing ________ segmentation. A) benefit B) age and life-cycle C) psychographic D) geographic E) gender

B) age and life-cycle

Consumers who show their allegiance to brands, stores, or companies help marketers to segment consumers by their ________. A) user status B) degree of loyalty C) income D) geographic location E) benefit-seeking attitudes

B) degree of loyalty

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each is known as ________. A) mass marketing B) differentiated marketing C) concentrated marketing D) individual marketing E) cross-marketing

B) differentiated marketing

________ requires finding the major advantages people look for in a product class, the kinds of people who look for each positive aspect of a product, and the major brands that deliver it. A) Gender segmentation B) Psychographic segmentation C) Benefit segmentation D) Geographic segmentation E) Age and life-cycle segmentation

C) Benefit segmentation

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. A) Mass customization B) Market targeting C) Market segmentation D) Differentiation E) Positioning

C) Market segmentation

________ consists of evaluating each market segment's attractiveness and selecting one or more segments to enter. A) Positioning B) Mass customization C) Market targeting D) Market segmentation E) Differentiation

C) Market targeting

________ marketing tailors brands and promotions to the needs and wants of regional customer groups, such as cities, neighborhoods, and even specific stores. A) Undifferentiated B) Differentiated C) Niche D) Local E) Individual

D) Local

________ is the process by which firms interact one-to-one with masses of customers to design products and services tailor-made to individual needs. A) Product diversification B) Micromarketing C) Mass customization D) Differentiated marketing E) Local marketing

C) Mass customization

________ segmentation refers to dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item. A) Gender B) Psychographic C) Occasion D) Geographic E) Income

C) Occasion

Calypso Motors recently rolled out its Proteus hatchback. Proteus combines the attractiveness of a luxury car with the excellent agility of a sports car. Calypso Motors is confident that Proteus will appeal to both sports car enthusiasts as well as the luxury segment. Which of the following types of market segmentation is evident here? A) gender segmentation B) income segmentation C) benefit segmentation D) geographic segmentation E) age and life-cycle segmentation

C) benefit segmentation

With a(n) ________ marketing strategy, a firm goes after a large share of one or a few smaller niches. A) individual B) mass C) concentrated D) differentiated E) local

C) concentrated

Pacific Fisheries divides its customers into different regional units, such as Asia, Australia, and the Americas. This is an example of ________ segmentation. A) demographic B) psychographic C) geographic D) occasion E) benefit

C) geographic

When a company customizes its merchandise store by store to meet shopper needs, it is practicing ________ marketing. A) niche B) mass C) local D) segmented E) trigger-based

C) local

When order requests come in, the designers of Titus Furniture often go to a client's location to note their requirements, budget, and expected date of delivery. In this way, Titus Furniture is successful in tailor-making products for its customers. This is an example of ________. A) market diversification B) undifferentiated marketing C) mass customization D) differentiated marketing E) trigger-based marketing

C) mass customization

Which of the following marketing strategies is most suitable for smaller firms with limited resources? A) mass marketing B) undifferentiated marketing C) niche marketing D) differentiated marketing E) one-to-one marketing

C) niche marketing

Stores such as Walmart, Best Buy, PetSmart, David's Bridal, and DSW Shoes use ________ positioning. A) more for the same B) more for less C) same for less D) less for much less E) more for more

C) same for less

A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage of the market. The study indicated that less than 7 percent of all shoppers buy nearly 71 percent of Estelle's products in the United States. This is an example of ________. A) benefit segmentation B) segmentation by loyalty status C) segmentation by usage rate D) psychographic segmentation E) occasion segmentation

C) segmentation by usage rate

A market segment that is large enough or profitable enough to serve is ________. A) measurable B) accessible C) substantial D) profitable E) differentiable

C) substantial

Which of the following is a disadvantage of using a differentiated marketing strategy? A) generates far lower sales compared to an undifferentiated marketing strategy B) customer loyalty is negatively impacted and difficult to obtain C) the costs of doing business increase D) quality control problems increase E) product safety decreases

C) the costs of doing business increase

In the context of behavioral segmentation, markets segmented by ________ can be categorized into light, medium, and heavy product users. A) benefits sought B) loyalty status C) usage rate D) user status E) occasion

C) usage rate

________ segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. A) Complex B) Measurable C) Competitive D) Differentiable E) Homogeneous

D) Differentiable

________ marketing is more suited for products that vary in design. A) Mass B) Local C) Direct D) Differentiated E) Individual

D) Differentiated

________ shows consumer perceptions of a company's brands versus competing products on important buying dimensions. A) Differentiation B) Positioning C) Market targeting D) Perceptual positioning maps E) Market segmentation

D) Perceptual positioning maps

________ refers to a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. A) Individual marketing B) Local marketing C) Niche marketing D) Undifferentiated marketing E) Segmented marketing

D) Undifferentiated marketing

________ refers to how a company will create differentiated value for targeted segments and what positions it wants to occupy in those segments. A) Targeted marketing B) Market segmentation C) Product positioning D) Value proposition E) Niche marketing

D) Value proposition

When an effective program can be designed for attracting and serving a particular segment, the segment is best described as ________. A) accessible B) measurable C) competitive D) actionable E) differentiable

D) actionable

A segment is less attractive if it ________. A) is difficult for new entrants to enter B) is substantial C) is actionable D) already contains many strong and aggressive competitors E) contains weak suppliers

D) already contains many strong and aggressive competitors

Sanguine Services is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. Sanguine most likely uses which of the following marketing strategies? A) individual marketing B) one-to-one marketing C) mass marketing D) concentrated marketing E) trigger-based marketing

D) concentrated marketing

Which of the following is LEAST relevant when a firm evaluates different market segments? A) segment size and growth B) company resources C) segment structural attractiveness D) core competencies of competitors E) company objectives

D) core competencies of competitors

Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here? A) geographic segmentation B) benefit segmentation C) occasion segmentation D) demographic segmentation E) psychographic segmentation

D) demographic segmentation

Double Drill Inc. segments its foreign markets by per capita income. This firm segments the international markets based on ________. A) political factors B) legal factors C) geographic location D) economic factors E) cultural factors

D) economic factors

A public relations firm tailors its advertising and promotional services according to the needs and preferences of specific customers. This exemplifies ________. A) trigger-based marketing B) mass marketing C) segmented marketing D) individual marketing E) concentrated marketing

D) individual marketing

Teen Mania Inc., a company marketing adventure sports merchandise for teenagers, targets the world's teenagers, who have similar needs and buying behavior even though they are located in different countries. Which of the following market segmentation is evident here? A) income segmentation B) psychographic segmentation C) gender segmentation D) intermarket segmentation E) occasion segmentation

D) intermarket segmentation

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes many college students, as an untapped group of potential customers for their new line of products, they were engaging in ________. A) occasion segmenting B) local marketing C) market diversification D) market targeting E) product positioning

D) market targeting

Through ________ differentiation, brands can be differentiated on features, performance, or style and design. A) services B) channel C) people D) product E) price

D) product

________ is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. A) Mass marketing B) Trigger-based marketing C) Differentiated marketing D) Concentrated marketing E) Micromarketing

E) Micromarketing

________ positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs. A) More for the same B) More for less C) Same for less D) Less for much less E) More for more

E) More for more

Which of the following is true about multivariable segmentation systems? A) Marketers using multiple segmentation bases tend to ignore smaller markets. B) Marketers often use multiple segmentation bases to control inflation. C) Multiple segmentation rarely involves the use of demographic data. D) Multiple segmentation is ineffective in large markets. E) Multiple segmentation bases help identify smaller, better-defined target groups

E) Multiple segmentation bases help identify smaller, better-defined target groups

________ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics. A) Benefit B) Occasion C) Geographic D) Demographic E) Psychographic

E) Psychographic

Orion Inc. markets luxury watches. It targets the wealthy global elite segment, regardless of their geographic location. Orion most likely uses ________ segmentation. A) income B) age-group C) occasion D) benefit E) cross-market

E) cross-market

Using ________ segmentation, marketers form segments of consumers who have similar needs and buying behaviors even though they are located in different countries. A) psychographic B) demographic C) occasion D) benefit E) intermarket

E) intermarket

An American cola-manufacturing company that primarily targets rebellious and adventurous people most likely uses ________ segmentation. A) occasion B) geographic C) income D) benefit E) psychographic

E) psychographic

Which of the following refers to a cultural factor in the context of segmenting international markets? A) receptivity of foreign firms B) economic development of the country C) population income levels D) stability of the government E) values and attitudes

E) values and attitudes

Demographic segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.

False

Geographic segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

False

Inter-market segmentation refers to forming segments of consumers who have different needs and buying behaviors in a given geographical region.

False

Marketers usually limit their segmentation analysis to only one major variable.

False

True or False Mass marketing involves identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.

False

When segmenting by usage rate, markets can be segmented into nonusers, ex-users, potential users, first-time users, and regular users of a product.

False

True or False Niche marketing involves tailoring brands and promotions to the needs and wants of local customer groups—cities, neighborhoods, and even specific stores.

false

True or False Product differentiation refers to the way a product is defined by consumers on important attributes—the place the product occupies in consumers' minds relative to competing products

false

True or False Using an undifferentiated marketing strategy, a firm decides to target several market segments and designs separate offers for each

false

true or false Using a segmented marketing strategy, a firm might decide to ignore market segment differences and target the whole market with one offer.

false

Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

true

True or False Individual marketing is also known as one-to-one marketing, mass customization, and markets-of-one marketing

true

True or False When using a niche marketing strategy, a firm goes after a large share of one or a few smaller segments.

true

true or false The customer-driven marketing strategy involves four steps: market segmentation, market targeting, positioning, and differentiation.

true

Which of the following is a drawback of local marketing? A) Local marketing increases manufacturing costs by reducing the economies of scale. B) Local marketing requires specialization that is difficult to identify. C) Local marketing is not profitable for most small firms. D) Local marketing cannot accommodate the needs of modern buyers who are technology savvy. E) Local marketing almost always results in brand dilution.

A) Local marketing increases manufacturing costs by reducing the economies of scale.

Which of the following is NOT a common variable used by both consumer and business marketers while segmenting markets? A) operating characteristics B) loyalty status C) usage rate D) geographic location E) benefits sought

A) operating characteristics

Which of the following refers to a behavioral segmentation variable that involves segmenting markets into nonusers, ex-users, potential users, first-time users, and regular users of a product? A) user status B) usage rates C) gender status D) income status E) loyalty status

A) user status

The full mix of benefits on which a brand is differentiated and positioned is known as the brand's ________. A) value proposition B) service life C) value stream D) supply chain E) demand chain

A) value proposition

Jean Malone, a market researcher, recently found that most people in Bradburg County purchase automobiles with predominantly functional designs and prefer darker colors. Which of the following marketing strategies should Jean most likely recommend to an automobile dealer interested in opening a dealership in Bradburg County? A) one-to-one marketing B) undifferentiated marketing C) segmented marketing D) individual marketing E) direct marketing

B) undifferentiated marketing

GamaPix makes point-and-shoot cameras and handycams for amateur photographers and hobbyists. It also has a separate line of cameras dedicated to professional photographers. Additionally, it designs separate offers for each segment. Which of the following marketing strategies does GamaPix most likely use in this instance? A) mass marketing B) differentiated marketing C) individual marketing D) local marketing E) direct marketing

B) differentiated marketing

Gilron Holidays runs a premium membership club that caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts on select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach. A) gender B) income C) occasion D) benefit E) geographic

B) income

Papillon, a popular retailer of chic women's clothing, segments its market according to consumer lifestyles. Papillon most likely uses ________ segmentation for segmenting its market. A) geographic B) psychographic C) benefit D) age and life-cycle E) occasion

B) psychographic

A company selling child-care products ran a television ad depicting women as being primarily responsible for childcare. Many women viewers considered this regressive, alleging that the ad failed to recognize the much more diversified role of women in today's world. This is an example of ________. A) cause marketing B) stereotyping C) niche marketing D) scapegoating E) positioning

B) stereotyping

Shine Enterprises mass produces an all-purpose floor cleaner that is aimed at the whole market. This firm uses a(n) ________ marketing strategy. A) segmented B) undifferentiated C) individual D) niche E) one-to-one

B) undifferentiated

Malcolm Sanders, a graduate student from Boston, makes customized snowboards for local snowboarding enthusiasts. The demand for snowboards peaks during the winter months, a busy time for Malcolm. He advertises more aggressively and sells most of his snowboards around this time. Which market segmentation approach does Malcolm most likely use? A) gender segmentation B) psychographic segmentation C) occasion segmentation D) geographic segmentation E) age and life-cycle segmentation

C) occasion segmentation

Marketers often segment international markets according to the type and stability of government. In such instances, they segment markets based on ________. A) geographic location B) economic factors C) cultural factors D) political factors E) socio-cultural factors

D) political factors

A ________ refers to the way a product is defined by consumers on important attributes—the place the product occupies in consumers' minds relative to competing products. A) core competency B) value stream C) value proposition D) product position E) product specification

D) product position

Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals. A) demographic segmentation B) geographic segmentation C) benefit segmentation D) psychographic segmentation E) occasion segmentation

D) psychographic segmentation

A ________ consists of a set of buyers who share common needs or characteristics that the company decides to serve. A) marketing channel B) citizen-action group C) distribution channel D) target market E) customer franchise

D) target market

________ segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation. A) Geographic B) Benefit C) Occasion D) Psychographic E) Demographic

E) Demographic