Chapter 8

The calculation for ________ considers a customer's product or service usage rate, their loyalty to the company, and the firm's cost to serve that customer over time. A. customer lifetime value B. quarterly profit C. organizational segmentation D. demand elasticity E. break even point

A. customer lifetime value

A positioning approach that involves seeking a less competitive, smaller market niche in which to locate a brand is referred to as A. differentiation positioning. B. head-to-head positioning C. competitive repositioning. D. downsize positioning. E. product repositioning.

A. differentiation positioning.

A firm may decide against targeting a segment that A. is incompatible with its company's goals or objectives. B. has a growth potential that would require increasing the current workforce. C. its competitors have chosen to avoid. D. would require entry in a global marketplace. E. requires more than one marketing action.

A. is incompatible with its company's goals or objectives.

Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is A. market segmentation. B. market delineation. C. consumer differentiation. D. psychographics. E. aggregation marketing.

A. market segmentation.

A marketing manager goes through several steps to put a market segmentation plan into effect. This includes forming market segments and then __________ without encountering excessive costs. A. selecting the market segments to target B. eliminating potential nonbuyers C. ignoring any and all similarities D. identifying segmentation variables E. redirecting their purchase behaviors

A. selecting the market segments to target

Which statement regarding segmentation bases is most accurate? A. Geographic segmentation is rarely used today because of the Internet. B. The identification of demographic variables is more objective than the identification of psychographic variables, which is more subjective. C. Behavioral segmentation is based primarily on personality. D. The use of psychographic variables for segmentation is easiest for most consumer products. E. Marketers should use segmentation bases in this order to reduce potential costs: behavioral, demographic, psychographic, and geographic.

B. The identification of demographic variables is more objective than the identification of psychographic variables, which is more subjective.

Product differentiation is A. the unique combination of product benefits received by targeted buyers. B. a marketing strategy using different marketing mix actions to help consumers perceive the product as being different and better than competing products. C. those characteristics of a product that make it superior to competitive substitutes. D. the legal requirement that requires a specified degree of distinction between products to ensure an organization's intellectual property rights. E. a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs.

B. a marketing strategy using different marketing mix actions to help consumers perceive the product as being different and better than competing products.

Region and city size are both variables used to employ __________ segmentation. A. behavioral B. geographic C. demographic D. psychographic E. district

B. geographic

________ occurs when a new product or a new retail chain steals customers and sales from the organization's older products and retail outlets. A. Product pilfering B. Product appropriation C. Cannibalization D. Amortization E. Marketing Darwinism

C. Cannibalization

Which of these is collected from consumers to develop a product's perceptual map? A. rank order of the ratings of an existing brand's preference relative to its competitors B. detailed explanations of why consumers make the choices they do C. consumer judgments about the important attributes for a product or brand class D. managerial judgments about how consumers perceive products E. a listing of all prospective brands and products

C. consumer judgments about the important attributes for a product or brand class

In the segmentation process, pairing side sleepers with firm pillows, back sleepers with medium pillows, and stomach sleepers with soft pillows would be done with a A. cross-tabulation. B. growth-share matrix. C. market-product grid. D. product differentiation table. E. needs table.

C. market-product grid.

Tailoring products or services to the tastes of individual customers on a high-volume scale is referred to as A. build-to-order. B. family branding. C. mass customization. D. product differentiation. E. economies of scale marketing.

C. mass customization.

Variables such as location, the North American Industry Classification System (NAICS) code, and number of employees are all examples of ways to A. calculate a break-even point. B. forecast sales for a consumer market. C. segment an organizational market. D. promote protectionism. E. differentiate products.

C. segment an organizational market.

When compared to a multiple products, multiple market segments strategy, a one product, multiple market segment strategy A. is a more effective way of meeting organizational objectives. B. has significantly higher distribution costs. C. is a much more effective means of meeting consumers' individual needs. D. creates greater savings in production costs. E. is more profitable since a firm can charge the new segments higher prices without changing the product.

D. creates greater savings in production costs.

Product positioning is A. changing the place a product occupies in a consumer's mind relative to competitive products. B. an outdated concept that assigns product value by association with social class. C. the competitive advantage of one product over another. D. the place a product offering occupies in consumers' minds on important attributes. E. a market-product grid with products in appropriate places used to identify potential untapped markets.

D. the place a product offering occupies in consumers' minds on important attributes.

All of these are criteria that would support forming market segments except which? A.There are significant similarities among buyers in the market segment. B. The ability to assign buyers to a segment is cost-effective and simple. C. The result of segmenting will cause an increase in market share or profit. D. There is a potential marketing action to reach the segment. E. The cost to reach the segment exceeds the expected returns.

E. The cost to reach the segment exceeds the expected returns.

The 80/20 rule suggests that A. around 80 percent of a firm's inventory should be readily available while 20 percent should be reserved for emergency demand. B. 80 percent of a firm's marketing program expenses are tax deductible while 20 percent are not. C. nearly 80 percent of a firm's first-time users will become brand loyal while 20 percent will use the product only once and then abandon it. D. about 80 percent of a firm's products will be sold to ultimate consumers while 20 percent goes to organizational buyers. E. about 80 percent of a firm's sales are obtained from about 20 percent of its customers.

E. about 80 percent of a firm's sales are obtained from about 20 percent of its customers.

Segmentation based on what product features are important to different customers is a type of A. psychographic segmentation. B. demographic segmentation. C. geographic segmentation. D. socioeconomic segmentation. E. behavioral segmentation.

E. behavioral segmentation.

The process of segmenting a market and selecting specific segments as targets is the link between __________ and the organization's marketing program A. top-level management B. controllable environmental factors C. government regulations D. self-regulatory industry standards E. buyers' or market needs

E. buyers' or market needs

Personality and lifestyle are both variables used to employ __________ segmentation. A. attitudinal B. demographic C. behavioral D. geographic E. psychographic

E. psychographic