Ch. 8 Chapter Review

_____ is the process of grouping customers into market segments according to the benefits sought from the product. Select one: a. Benefit segmentation b. Value-added segmentation c. Lifestyle segmentation d. Macrosegmentation e. Psychographic segmentation

a. Benefit segmentation

_____ segmentation is based on personality, motives, and lifestyles. Select one: a. Psychographic b. Demographic c. Benefit d. Family life cycle e. Character

a. Psychographic

All of the following are bases for psychographic segmentation EXCEPT: Select one: a. benefits b. personality c. motives d. lifestyles e. geodemographics

a. benefits

In Baton Rouge, Louisiana, everyone who is anybody in society can't wait to get a copy of 225 magazine. The magazine is targeted to the upper middle and upper classes in Baton Rouge and features articles on how they work and play. The editor of 225 magazine is relying on _____ segmentation. Select one: a. geodemographic b. graphic c. benefit d. socioeconomic e. income

a. geodemographic

Consumers in Louisiana love hot sauce, and Tabasco and Crystal brands are particularly popular there. Consumers in Michigan do not like hot food, so they purchase very little hot sauce. A national chain of grocery stores would likely use _____ segmentation when stocking condiment merchandise. Select one: a. geographic b. economic c. demographic d. benefit e. geodemographic

a. geographic

The Coca-Cola Company has over 450 brands in over 195 countries. According to their Web site, their products range from Samurai, an energy drink available in Asia to Vita, an African juice drink. It uses _____ segmentation in this marketing strategy. Select one: a. geographic b. economic c. demographic d. usage-rate e. multipositioning

a. geographic

_____ is the segmenting of markets based on the region of the country or the world, market size, market density (number of people within a certain unit of land), or climate. Select one: a. Community segmentation b. Geographic segmentation c. Geodemographic segmentation d. PRIZM segmentation e. Demonstrated regionalization

b. Geographic segmentation

In Miami, several radio stations broadcast in Spanish and play Latin music for the Hispanic people living in South Florida. The radio stations are using _____ segmentation. Select one: a. usage rate b. ethnic c. socioeconomic d. geographic e. gender

b. ethnic

The Belly Cast kit by Proud Body helps an expectant mom to make a cast of her pregnant body, decorate it, and keep it for a lifetime. The primary market segment for the Belly Cast kit is: Select one: a. all parents b. expectant moms c. recently married couples d. parents of toddlers e. collectors of unusual art

b. expectant moms

Market segmentation can assist marketers to do all of the following EXCEPT: Select one: a. develop more precise definitions of customer needs and wants b. identify which variable base should be used for segmenting c. more accurately define marketing objectives d. improve resource allocation e. evaluate performance

b. identify which variable base should be used for segmenting

The _____ proposes that a minority of a firm's customers purchase a majority of the volume of the product. Select one: a. majority fallacy b. equity fallacy c. 80/20 principle d. cannibalization rule e. optimizer principle

c. 80/20 principle

Deal$ stores sell a wide variety of low-priced merchandise: party supplies, cleaning products, toys, food, housewares, and health and beauty products for both men and women. Many items in the store are priced no higher than one dollar. Which type of demographic segmentation is Deal$ using? Select one: a. Ethnic b. Usage rate c. Income d. Gender e. Age

c. Income

What is the first step in segmenting a market? Select one: a. Set the segmentation goals b. Choose a basis or bases for segmenting the market c. Select a market or product category for study d. Profile and analyze segments e. Select target markets

c. Select a market or product category for study

Fisher-Price developed a rugged, waterproof camera for children. This product uses _____ segmentation. Select one: a. ethnicity b. income c. age d. gender e. occupation

c. age

Product positioning is the process of: Select one: a. finding the correct location for retail outlets to sell a product category. b. finding the right channel of distribution for a product. c. creating the desired image of the firm's product. d. competing with competitors' products in the retailers' stores for the best position on the shelf. e. pricing the product to be at a competitive level with other brands on the market.

c. creating the desired image of the firm's product.

Modern Bride is a publication that contains articles and lots of ads for the bride-to-be. Many young women consult this magazine as they plan their special day. The segmentation base used to define the publication's target market is based on _____ variables. Select one: a. geodemographic b. geographic c. family life cycle d. lifestyle e. psychographic

c. family life cycle

Business marketers focus on all of the following market segments EXCEPT: Select one: a. institutions. b. producers. c. households. d. resellers. e. government.

c. households

Ford Motor Company produces passenger cars, commercial trucks and specialty vehicles, performance vehicles, and race cars. Ford uses a procedure called _____ to divide its large market. Select one: a. micromarketing b. positioning c. market segmentation d. cannibalization e. perceptual mapping

c. market segmentation

_____ is one of the potential disadvantages associated with a multisegment strategy. Select one: a. Inadequate demand b. Demarketing c. Lower profits d. Cannibalization e. Loss of synergy

d. Cannibalization

E&V Bridal Studios, a wedding consulting business, only works with Eastern Asian customers who want to use their cultural heritage in their wedding ceremonies. What type of segmentation strategy does the wedding consultant use? Select one: a. Market aggregation b. Undifferentiated targeting c. Multisegment marketing d. Concentrated targeting e. Limited demand

d. Concentrated targeting

_____ is the development of a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general and is related to the place a product occupies in consumers' minds relative to competing offerings. Select one: a. Market differentiation b. Diversification c. Combination marketing d. Positioning e. Market aggregation

d. Positioning

Lands' End offers customers the option using special software to accurately gauge what size customers are in Lands' End clothes using a web cam image, and the ability to store size preferences. This is an example of which trend contributing to CRM? Select one: a. Time Savings b. Personalization c. Loyalty marketing d. Technology e. Data Mining

d. Technology

Stouffer's offers gourmet entrees for one segment of the frozen dinner market and Lean Cuisine for another segment that wants both good taste and low calories. When Stouffer's chose to serve two well-defined market segments and develop distinct marketing mixes for each, it was implementing a(n) _____ strategy. Select one: a. market integration b. concentrated targeting c. undifferentiated targeting d. multisegment targeting e. heterogeneous positioning

d. multisegment targeting

Chandler Kumar owns two antique stores. One is in an upscale neighborhood, and its merchandise is artfully arranged and priced to indicate product rarity. The other is in a run-down strip mall and contains some of the same type of merchandise, but the items are left in open boxes and placed haphazardly on shelves. Customers of either store have entirely different perceptions of the stores and would be surprised to know Kumar operates each of them because he uses such differing _____ strategies. Select one: a. market integration b. segmentation c. targeting d. positioning e. market combination

d. positioning

When the Sara Lee Bakery Group introduced Iron Kids Crustless bread (to save mothers the time and effort of slicing the crusts off sandwiches), it was using: Select one: a. PRIZM segmentation b. geodemographic segmentation c. niche marketing strategy execution d. product differentiation e. a target market chart

d. product differentiation

Which of the following statements best describes the reason marketers find geodemographic segmentation so effective? Select one: a. "A bird in the hand is worth two in the bush." b. "Every action has an opposite and equal reaction." c. "A rifle is more exact than a shotgun." d. "Don't put all of your eggs in one basket." e. "Birds of a feather flock together."

e. "Birds of a feather flock together."

Which of the following businesses would be most likely to use family life cycle segmentation? Select one: a. Those that produce and market computer software and hardware b. The snack industry c. Fast-food restaurants d. Business-to-business marketers e. Wedding planners, couples-only resorts, and day care centers

e. Wedding planners, couples-only resorts, and day care centers

The advertisements for Kay Jewelers usually show a man presenting a woman with a ring or necklace and receiving a kiss in return. The ad then shows the slogan "Every Kiss Begins with Kay." This is an example of _____ positioning. Select one: a. product class b. price and quality c. use or application d. attribute e. emotion

e. emotion

The place a product, brand, or group of products occupies in consumers' minds relative to competing offerings is referred to as a product's: Select one: a. status b. equity c. frame d. role e. position

e. position

The public transportation system in the San Francisco area conducted a survey that revealed respondents could be assigned to one of four categories: (1) people who never utilized mass transit, (2) people who utilized mass transit in the past but not now, (3) people who utilized mass transit occasionally, and (4) people who utilized mass transit regularly. These groups have significantly different perceptions about transportation alternatives. This is an example of _____ segmentation. Select one: a. demographic b. benefit c. aggregate d. economic e. usage-rate

e. usage-rate