chapter 6 marketing
10) ________ is the science of using psychology and demographics to better understand consumers. A) Psychographics B) Interactionism C) Clustering D) Demographic transition E) Customerization
Answer: A Diff: 1 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Analytical thinking
16) Urgency, specific application, and size of order are examples of ________ segmentation variables for business markets. A) situational factors B) demographic C) purchasing approaches D) personal characteristics E) operating variables
Answer: A Diff: 1 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Analytical thinking
3) The process of selecting one or more market segments to enter is called market ________. A) targeting B) dominance C) positioning D) segmentation E) research
Answer: A Diff: 1 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Reflective thinking
63) In evaluating different market segments, the firm must look at two factors: the segment's overall attractiveness and the ________. A) company's objectives and resources B) effectiveness of the suppliers C) flexibility of legal rules governing the business D) socio-economic infrastructure E) global nature of the product
Answer: A Diff: 1 LO: 6.3: What are the different levels of market segmentation? AACSB: Reflective thinking
8) Newlyweds in the United States buy more in the first six months than an established household does in five years. Newlyweds are an example of a(n) ________ segment. A) life stage B) age C) behavior D) user status E) income
Answer: A Diff: 2 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Analytical thinking
12) Dennis requests his father to buy him a PlayStation® for his birthday. With respect to consumer decision roles, which role is Dennis currently playing? A) initiator B) influencer C) decider D) buyer E) gatekeeper
Answer: A Diff: 2 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Analytical thinking; Application of knowledge
22) When marketers present flexible market offerings to all members of a business segment, their offerings consist of two parts. Which part contains the product and service elements that all segment members value? A) naked solution B) discretionary solution C) maximum solution D) pseudo solution E) virtual solution
Answer: A Diff: 2 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Analytical thinking; Application of knowledge
5) When the Modern Museum of Art separated its consumers by whether they were culture-oriented or outdoor-oriented for its new exhibit on art that used natural materials, they were using ________ segmentation. A) psychographic lifestyle B) personality C) behavioral occasions D) social class E) demographic
Answer: A Diff: 2 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Application of knowledge
18) A marketer is interested in segmenting a business market on ________ if the marketer intends to segment the market based on industries and geographical areas to serve. A) demographic variables B) situational factors C) operating variables D) purchasing approaches E) personal characteristics
Answer: A Diff: 2 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Reflective thinking
67) Marketers usually identify niches by ________. A) dividing a segment into subsegments B) conducting VALS tests C) allowing consumers to gravitate toward product brands D) examining the demographics section of the handbook of marketing E) producing products that can be used in a variety of ways
Answer: A Diff: 2 LO: 6.3: What are the different levels of market segmentation?
68) Volkswagen concentrates on the small-car market and Porsche on the sports car market. These would be examples of what is called ________. A) single-segment concentration B) selective specialization C) product specialization D) market specialization E) full market coverage
Answer: A Diff: 2 LO: 6.3: What are the different levels of market segmentation? AACSB: Analytical thinking; Application of knowledge
17) In segmenting its markets, an aluminum company first looked at which end-use market to serve: automobile, residential, or beverage containers. This is an example of ________. A) macrosegmentation B) microsegmentation C) geographic segmentation D) global segmentation E) short-term segmentation
Answer: A Diff: 3 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Analytical thinking
69) All of the following are benefits of following the ________ approach to target market selection: a strong knowledge of the segment's needs, a strong market presence, operating economies through specializing in production, distribution, and promotion. A) single-segment concentration B) selective specialization C) product specialization D) market specialization E) full market coverage
Answer: A Diff: 3 LO: 6.3: What are the different levels of market segmentation? AACSB: Reflective thinking
15) If a marketer is seeking to segment a business market, which of the following variables is generally felt to be the most important? A) personal characteristics B) demographic variables C) situational factors D) operating variables E) purchasing approaches
Answer: B Diff: 1 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Analytical thinking
2) Establishing and communicating the distinctive benefit(s) of the company's market offering for each target segment is called ________. A) market research B) market positioning C) marketing effectiveness D) market segmentation E) market dominance
Answer: B Diff: 1 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Reflective thinking
48) To be useful, a market segment should be ________, which means the largest possible homogeneous group worth going after with a tailored marketing program. A) measurable B) substantial C) accessible D) differentiable E) actionable
Answer: B Diff: 1 LO: 6.2: How should a company choose the most attractive target markets? AACSB: Analytical thinking
21) A ________ offering consists of two parts: a naked solution and discretionary options. A) differentiated market B) flexible market C) rigid market D) vertical market E) horizontal market
Answer: B Diff: 2 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Analytical thinking
43) Which of the following statements is TRUE about the five forces identified by Michael Porter that determine the intrinsic long-run attractiveness of a market or market segment? A) A segment is unattractive if the company's suppliers are unable to raise prices or reduce quantity supplied. B) A segment is unattractive if buyers possess strong or growing bargaining power. C) A segment is attractive when there are actual or potential substitutes for the product. D) A segment is attractive if it already contains numerous, strong, or aggressive competitors. E) The most attractive segment is one in which entry barriers are low and exit barriers are high.
Answer: B Diff: 2 LO: 6.2: How should a company choose the most attractive target markets? AACSB: Reflective thinking
64) In ________ marketing, the firm ignores segment differences and goes after the whole market with one offer. A) niche B) mass C) guerrilla D) segmented E) differentiated
Answer: B Diff: 2 LO: 6.3: What are the different levels of market segmentation? AACSB: Analytical thinking
14) A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can show the firm which brands are most competitive with its own. A) hard-core loyals B) split loyals C) shifting loyals D) switchers E) antiloyals
Answer: B Diff: 3 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Reflective thinking
66) General Motors, a leading American multinational automaker, sells cars for every purpose, budget, and personality. This is an example of ________ marketing. A) undifferentiated B) differentiated C) concentrated D) niche E) micro
Answer: B Diff: 3 LO: 6.3: What are the different levels of market segmentation? AACSB: Analytical thinking; Application of knowledge
70) Which of the following best represents the chief advantage of pursuing a strategy of multiple segment specialization? A) It makes the company almost bulletproof to competitors' actions. B) It diversifies the firm's risk. C) It creates synergy between markets. D) It is a low-cost strategy. E) It treats all buyers the same and, therefore, lowers promotion costs.
Answer: B Diff: 3 LO: 6.3: What are the different levels of market segmentation? AACSB: Reflective thinking
6) Pampers divides its market demographically on the basis of ________ into prenatal, new baby, baby, toddler, and preschooler. A) life stage B) gender C) age D) income E) social class
Answer: C Diff: 2 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Analytical thinking; Application of knowledge
20) A marketer is interested in segmenting a business market on ________ if the marketer's variables are loyalty and attitudes toward risk. A) situational factors B) purchasing approaches C) personal characteristics D) operating variables E) demographic variables
Answer: C Diff: 2 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Reflective thinking
46) In the ________ step of the market segmentation process, the marketer evaluates the segment using criteria such as market growth and market access. A) need-based segmentation B) segment identification C) segment attractiveness D) segment profitability E) segment "acid test"
Answer: C Diff: 2 LO: 6.2: How should a company choose the most attractive target markets? AACSB: Reflective thinking
65) In ________ marketing, the firm operates in several market segments and designs different products for each segment. A) individual B) undifferentiated C) differentiated D) concentrated E) niche
Answer: C Diff: 2 LO: 6.3: What are the different levels of market segmentation? AACSB: Reflective thinking
49) The characteristic of useful market segments that relates to whether the segments can be effectively reached and served is whether the segment is ________. A) measurable B) substantial C) differentiable D) accessible E) actionable
Answer: D Diff: 1 LO: 6.2: How should a company choose the most attractive target markets? AACSB: Analytical thinking
13) Mothers-to-be are potential users who will turn into heavy users of infant products and services. By targeting mothers-to-be as future heavy users, producers of these products and services are segmenting consumers on the basis of ________. A) attitude B) buyer-readiness stage C) loyalty status D) user status E) benefits
Answer: D Diff: 2 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Analytical thinking; Application of knowledge
1) Which of the following statements about market segmentation is TRUE? A) It involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. B) It is a process of evaluating each segment's attractiveness and selecting one or more to enter. C) It is a process of creating an image or identity of the product in the minds of the target market. D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants. E) It is the quality of how marketers go to market with the goal of optimizing their spending to achieve good results.
Answer: D Diff: 2 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Reflective thinking
45) If an organization's marketing department wants to create "segment storyboards" to test the attractiveness of each segment's positioning strategy, it would most likely occur in the ________ step of the segmentation process. A) needs-based segmentation B) segment identification C) segment profitability D) segment "acid test" E) marketing-mix strategy
Answer: D Diff: 2 LO: 6.2: How should a company choose the most attractive target markets? AACSB: Analytical thinking
44) During which step of the needs-based segmentation process would the marketer group customers into segments based on similar needs and benefits sought by the customer in solving a particular consumption problem? A) Step 2-segment identification B) Step 3-segment attractiveness C) Step 6-segment "acid test" D) Step 1-needs-based segmentation E) Step 7-marketing-mix strategy
Answer: D Diff: 2 LO: 6.2: How should a company choose the most attractive target markets? AACSB: Reflective thinking
52) If married and unmarried women respond similarly to a sale on perfume, these hypothetical segments fail the ________ criterion for useful market segments. A) measurable B) substantial C) accessible D) differentiable E) actionable
Answer: D Diff: 2 LO: 6.2: How should a company choose the most attractive target markets? AACSB: Reflective thinking; Application of knowledge
9) Which of the following statements about Gen Xers is TRUE? A) Gen Xers are often willing to change brands. B) Gen Xers are selective, confident, and impatient. C) Gen Xers are socially conscious and concerned about the environment. D) Gen Xers prize self-sufficiency and are pragmatic. E) Technology is a barrier for Gen Xers.
Answer: D Diff: 3 LO: 6.1: In what ways can a company divide a consumer or business market into segments?
50) If your assignment was to create a value proposition and product-price positioning strategy for each segment, based on the segment's unique customer needs and characteristics, you would be in which of the following steps of the segmentation process? A) needs-based segmentation B) segment identification C) segment attractiveness D) segment positioning E) segment "acid-test"
Answer: D Diff: 3 LO: 6.2: How should a company choose the most attractive target markets? AACSB: Analytical thinking
19) A marketer is interested in segmenting a business market based on technology and customer capabilities. These criteria illustrate which of the following major segmentation variables? A) demographic variables B) purchasing approaches C) situational factors D) personal characteristics E) operating variables
Answer: E Diff: 1 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Analytical thinking
11) The dimensions in the VALS framework are consumer resources and ________. A) marketer resources B) product innovation C) consumer maturity D) impulsiveness E) consumer motivation
Answer: E Diff: 2 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Analytical thinking
51) For a segment to meet the ________ criterion of usefulness, the marketer must be able to formulate effective programs for attracting and serving the segments. A) measurable B) substantial C) accessible D) differentiable E) actionable
Answer: E Diff: 2 LO: 6.2: How should a company choose the most attractive target markets? AACSB: Analytical thinking
47) In the ________ step of the market segmentation process, the marketer determines which demographics, lifestyles, and usage behaviors make each needs-based segment distinct and identifiable. A) segment "acid test" B) segment attractiveness C) segment profitability D) need-based segmentation E) segment identification
Answer: E Diff: 2 LO: 6.2: How should a company choose the most attractive target markets? AACSB: Reflective thinking
4) When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats? A) differentiated marketing B) affiliate marketing C) guerrilla marketing D) affinity marketing E) grassroots marketing
Answer: E Diff: 3 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Analytical thinking; Application of knowledge
7) The fact that Honda described its boxy Element as a "dorm room on wheels," but then attracted so many baby boomers that the average age of the Element turned out to be 42 illustrates what quality of baby boomers? A) being willing to pay for price for valued offerings B) being turned off by overt marketing practices C) being pragmatic and prizing self-sufficiency D) wanting to purchase online E) wanting to turn back the hands of time
Answer: E Diff: 3 LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Application of knowledge