Final Chapter 2

Division of the market based on age, sex, family size, income, and other measurable characteristics is known as: A. demographic segmentation. B. psychographic segmentation. C. socioeconomic segmentation. D. geographic segmentation. E. undifferentiated segmentation.

A

Momentum, a car manufacturer, positions one of its convertible as "the best natural tanning tool known to man." This scenario would reflect a positioning strategy based on: A. product attributes and benefits. B. cultural symbols. C. product user. D. price/quality. E. product class.

A

Pluto Inc., a car manufacturer, makes high-end, expensive sports cars. The company targets people who live life on the fast lane and are generally considered to have flashy personalities. In this scenario, Pluto is using _____ segmentation. A. psychographic B. benefit C. socioeconomic D. undifferentiated E. demographic

A

Which of the following is a primary variable defined in psychographic segmentation? A. Lifecycles B. Income C. Education D. Life stage E. Gender

A

Which of the following types of segmentation is employed when consumers are grouped according to their usage and buying responses to a product or service? A. Behavioristic B. Demographic C. Benefit D. Socioeconomic E. Psychographic

A

_____ segmentation is the grouping of customers on the basis of attributes sought in a product. A. Benefit B. Geographic C. Socioeconomic D. Demographic E. Lifestyle

A

Brown's Foods determined that Southerners preferred milder mustard than those in the Northeast. This led the company to develop a new "Southern Style Mustard." This strategy best exemplifies: A. geographic segmentation. B. lifestyle segmentation. C. socioeconomic segmentation. D. demographic segmentation. E. usage segmentation.

A

Which of the following is a primary variable considered in benefit segmentation? A. Attributes sought B. Income C. Lifestyle D. Birth era E. Marital status

A

A brand's market position refers to its: A. relative market share. B. location on store shelves. C. image in the mind of the customers. D. distribution intensity. E. stage in the product life cycle.

C

Brand identity is best defined as: A. a method of defining the percentage of loyal, impulsive, and need-based customers for a particular product. B. the process of taking the help of commercial market research agents to conduct a thorough market research before entering a market with unique products. C. a combination of the name, logo, symbols, design, packaging, and image of associations held by consumers. D. the process of creating new product lines within a company to expand and develop the company's product portfolio. E. a combination of print, guerilla, broadcast, and outdoor advertising to promote a company's products.

C

Dividing the market on the basis of personality and/or lifestyles is referred to as _____. A. geographic segmentation B. demographic segmentation C. psychographic segmentation D. socio economic segmentation E. behavioral segmentation

C

Enliven, a sports drink manufacturer, has identified its preferred target market as men between the ages of 18 to 22 who are currently in high school or college and active in sports. Which of the following types of segmentation is Enliven using in this scenario? A. Benefit and demographic B. Psychographic and geographic C. Demographic and socioeconomic D. Geographic and psychographic E. Socioeconomic and psychographic

C

Merry Inc. is a non-profit organization that employs a large number of underprivileged people. It sells art and handicrafts made by these individuals at reasonable prices. Merry's target market consists of people who believe in helping others. It uses _____ segmentation. A. demographic B. geographic C. psychographic D. benefit E. socio economic

C

Which of the following is a geographic variable for segmentation of the market? A. Family size B. Occasions C. Counties D. Age E. Gender

C

A company that divides its target markets based on their perceived level of loyalty is using: A. benefit segmentation. B. geographic segmentation. C. socioeconomic segmentation. D. behavioristic segmentation. E. outlet segmentation.

D

Brown's Frozen BBQ Sandwiches are made with goat meat drenched in a sweet onion sauce. These sandwiches would not be popular in Texas, where people prefer beef, or in Miami where a mustard-based sauce is preferred. Which of the following segmentation approaches would be best for the company? A. Demographic B. Socioeconomic C. Personality D. Geographic E. Behavioristic

D

Directing a company's efforts toward one or more groups of customers who share common needs is known as: A. cross-merchandising. B. competitor indexing. C. mass customization. D. market segmentation. E. cross-branding.

D

The first step in the target marketing process is to: A. develop positioning strategies. B. request government approval. C. determine whether to use a market segmentation strategy or a mass marketing strategy. D. identify markets with unfulfilled needs. E. develop new products.

D

Which of the following best defines branding? A. It involves creating new product lines within a company in order to expand and develop the company's product portfolio. B. It includes making use of more than one marketing channel to reach a huge number of customers and to cover a large geographical area. C. It primarily involves marketing through a mobile device which assists the customers with personalized information. D. It features building and maintaining a favorable identity and image of the company and/or its products or services in the mind of the consumer. E. It involves taking the help of commercial market research agents to conduct a thorough market research before entering a market with unique products.

D

Which of the following is true about packaging? A. The package cannot be used as a branding tool. B. The package lacks in offering benefits like economy and storage. C. The package is what the consumer must give up to purchase a product. D. The package is often the consumer's first exposure to the product. E. The package must not divulge information relating to its contents.

D

Which of the following is true of brand equity? A. It is a tangible asset that adds value to a service. B. It allows the seller to use undifferentiated marketing. C. It enables the seller to hide product successes from its competition. D. It is goodwill that results from a favorable impression. E. It allows the seller to stop all promotional activities and redirect its funds to other areas of operation.

D

_____ segmentation divides consumers into groups according to their usage, loyalties, or buying responses to a product. A. Benefit B. Geographic C. Demographic D. Behavioristic E. Psychographic

D

Degree of usage as a basis of segmentation is best reflected by: A. the VALS principle. B. the iceberg principle. C. the mirror image rule. D. the rule of equity. E. the 80-20 rule.

E

Which of the following is a primary variable of demographic segmentation? A. Lifestyle B. Personality C. Occupation D. Education E. Social class

E

_____ has been defined as "the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition." A. Branding B. Proximity mapping C. Drip marketing D. Segmentation E. Positioning

E

Jim's Inc., a travel agency in Texas, offers trips that are designed specifically for couples. In this scenario, the company is using _____ segmentation. A. geographic B. demographic C. lifestyle D. behavioristic E. personality

B

The fact that some consumers want flavored bottled water and others want it with added minerals provides an opportunity for _____ segmentation. A. socioeconomic B. benefit C. geographic D. psychographic E. demographic

B

The market segmentation process: A. divides a market into distinct groups that have heterogeneous needs. B. divides a market into distinct groups that will respond similarly to marketing actions. C. offers one version of the product to all markets. D. creates products for several markets that have independent needs. E. positions products in the minds of prospects and customers.

B

The marketing mix variable that deals with what a consumer must give up in order to purchase a product or service is _____. A. packaging B. price C. promotion D. distribution E. production

B

Venus Finance aired a series of ads that targeted people born after 1980, also known as Generation Y. In this scenario, the company is using a _____ segmentation strategy. A. geographic B. demographic C. socioeconomic D. behavioristic E. personality

B

Which of the following is a geographic segmentation variable? A. Income B. Neighborhood C. Sex D. Education E. Involvement

B

Which of the following is a primary variable used in psychographic segmentation? A. Income B. Lifestyles C. Education D. Marital status E. Age

B

Which of the following is a variable of the demographic segmentation strategy? A. Personality B. Marital status C. Values D. Lifestyle E. Occupation

B

_____ divides a market on the basis of lifecycles. A. Geographic segmentation B. Psychographic segmentation C. Benefit segmentation D. Demographic segmentation E. Socioeconomic segmentation

B

_____ relates to the image of a product and or brand relative to competing products or brands. A. Segmentation B. Positioning C. Neuromarketing D. Branding E. Merchandising

B

_____ segmentation is most closely related to the 80-20 rule, which states that 80 percent of a company's business comes from 20 percent of its customers. A. Geographic B. Behavioristic C. Demographic D. Psychographic E. Benefit

B

Which of the following best defines brand equity? A. It is a process of varying the width of the product range with the company to modify the return on investment of the company. B. It is a process which calculates the percentage of loyal, impulsive, need-based customers, and wandering customers for a particular product. C. It is an intangible asset of added value or goodwill that results from the favorable image and/or the strength of consumer attachment to a company name. D. It is the process of taking help from commercial market research agents to conduct a thorough market research before entering a market with unique products. E. It is combination of using print, guerilla, broadcast, and outdoor advertising to promote a company's products.

C

_____ is used when the firm selects one segment and attempts to capture a large share of the market. A. Mass marketing B. Undifferentiated marketing C. Concentrated marketing D. Differentiated marketing E. Bait-and-switch marketing

C

Delish Inc., a food manufacturer, introduced an instant soup specially designed for and advertised in the colder regions of Asia and Europe. This is an example of: A. demographic segmentation. B. psychographic segmentation. C. sociocultural segmentation. D. geographic segmentation. E. undifferentiated marketing.

D

Dental Care, a dental hygiene products manufacturer, has come up with three types of toothpastes for different segments—whitening toothpaste for individuals who buy for aesthetic reasons, strawberry flavored toothpaste for those concerned with the taste, and germ-control toothpaste for those looking to protect their teeth all day long. On what basis has it segmented the market? A. Demographic B. Geographic C. Socioeconomic D. Benefit E. Sociocultural

D

Which of the following is true of product positioning? A. It does not focus on a product's competitors. B. It is not possible to position a service. C. It focuses purely on customers. D. It involves creating a competitive advantage. E. It is usually synonymous with market integration.

D

With respect to psychographic segmentation of markets, AIO stands for: A. activities, innovation, and opinions. B. activities, interests, and opportunities. C. activities, innovations, and opportunities. D. activities, interests, and opinions. E. actions, interests, and opinions.

D

Dividing the market into units such as nation, states, town, counties, or even neighborhoods is known as: A. demographic segmentation. B. psychographic segmentation. C. quantified aggregation. D. lifestyle aggregation. E. geographic segmentation.

E