MKT: Chapter 5 Quiz

A company that produces laundry detergent offers one product with stain removing action while another is made for energy efficient washing machines. Which of the following segmentation strategies has the company used?

Benefits segmentation

Which of the following steps in one-to-one marketing involves determining who your best customers are in terms of what they spend and will spend in the future?

Differentiate among your customers

_____ are characterized as being motivated by self-expression and tend to be young, enthusiastic, and compulsive consumers.

Experiencers

T/F: Few companies tailor their offerings to meet the needs of different buyers around the world.

False

T/F: Psychographic segmentation is commonly utilized because relevant data is available for free at the U.S. Census Bureau's Web site.

False

_____ refers to how much a customer will spend in the future.

Lifetime value

T/F: A market may be more attractive than others because it is growing.

True

T/F: Behavioral segmentation may answer the question, "How do our customers use our product?"

True

T/F: Companies often find that finding and attracting new customers is more difficult than retaining customers.

True

T/F: Encouraging consumers to use your products for multiple purposes is a smart marketing strategy.

True

T/F: One of the most well-known psychographic surveys is VALS.

True

T/F: Positioning is especially important for those businesses facing a lot of competition.

True

T/F: Selling the same product to everyone is known as undifferentiated marketing.

True

To avoid head-on competition with other firms trying to capture the same customers, a firm may choose a _____ strategy.

targeted marketing