CHAPTER 6

T/F Smaller companies may lack the skills and resources needed to serve larger segments.

TRUE

T/F Target and Kohl's have opened smaller-format stores designed to fit the needs of densely packed urban neighborhoods. This is an example of geographic segmentation.

TRUE

T/F Business and consumer marketers use many of the same variables to segment their markets.

TRUE

T/F For market segments to be beneficial for companies, they must be measurable.

TRUE

When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________. A) accessible B) measurable C) reachable D) actionable E) differentiable

actionable

Which of the following types of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance? A) services differentiation B) channel differentiation C) people differentiation D) product differentiation E) price differentiation

channel differentiation

Company and brand positioning should be summed up in a ________. A) mission statement B) vision statement C) profit statement D) positioning statement E) corporate statement

positioning statement

When a market segment is large or profitable enough to serve, it is termed ________. A) measurable B) accessible C) substantial D) actionable E) differentiable

substantial

Lilly's, a furniture retailer, sells low-end furniture and accent pieces that are targeted toward lower-income consumer groups. Lilly's most likely segments the consumer market based on ________ variables. A) demographic B) psychographic C) universal D) geographic E) behavioral

demographic

P&G was among the first to use ________ segmentation when it introduced Secret, a deodorant brand specially formulated for women's chemistry. A) age and life-cycle B) gender C) behavior D) psychographic E) geographic

gender

Port Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called ________ marketing. A) concentrated B) differentiated C) individual D) mass E) local

differentiated

Bakeries and coffee bistros that offer pumpkin-flavored items only during the autumn season target their consumers primarily through ________ segmentation. A) psychographic B) demographic C) income D) occasion E) age and life-cycle

occasion

T/F A segment is more attractive if it is easy for new competitors to enter the market.

FALSE

T/F New communications technologies like satellite TV and social media are likely to eliminate the need for markets to be geographically segmented as clusters of countries.

TRUE

________ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior. A) Differentiation B) Mass marketing C) Market targeting D) Market segmentation E) Positioning

market segmentation

Although not recommended, some marketers decide to ignore market segmentation and target the whole market with one offer. This is known as ________ marketing. A) undifferentiated B) differentiated C) niche D) local E) individual

undifferentiated

T/F A more-for-more market offering not only offers higher quality but also gives prestige to a buyer.

TRUE

T/F Demographic factors are the most popular bases for segmenting customer groups

TRUE

T/F Even if a segment has the right size and growth and is structurally attractive, a company must consider its own objectives and resources before targeting that segment.

TRUE

T/F Marketers must be careful to guard against stereotypes when using age and life-cycle segmentation.

TRUE

T/F Multivariable segmentation systems merge and analyze geographic, demographic, lifestyle, and behavioral data to help companies segment their markets.

TRUE

T/F Niche marketing offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger companies.

TRUE

T/F Not all companies that use income segmentation target the affluent.

TRUE

T/F The low cost of setting up shop on the Internet makes it even more profitable to serve seemingly small niches.

TRUE

T/F While designing a customer-driven marketing strategy, marketers are likely to divide the market into smaller segments.

TRUE

Unlike other car rental agencies that are based in airports to serve travelers, Rental Wheelz has a network of neighborhood offices. The firm strives to serve people who need car rentals for reasons other than vacation, such as when their own cars are being repaired. Rental Wheelz caters to a small share of the large car rental market. From this description, it can be concluded that Rental Wheelz most likely practices ________. A) undifferentiated marketing B) multi-segmented marketing C) individual marketing D) local marketing E) concentrated marketing

concentrated marketing

The full positioning of a brand is referred to as the ________. A) differentiated strategy B) concentrated strategy C) unique selling proposition D) value proposition E) undifferentiated strategy

concentrated strategy

Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged men, and the other line targets younger, up-and-coming professionals. Harry's most likely segments the consumer market based on ________ variables. A) geographic B) psychographic C) universal D) demographic E) behavioral

demographic

T/F A market segment with powerful suppliers controlling the prices is more attractive than a segment with less powerful suppliers.

FALSE

T/F Cian, an automobile manufacturer, offers a new car model with features comparable to that of another popular brand. However, the Cian model is priced lower than its competitor and includes a longer warranty. Cian is most likely following a more-for-the-same strategy.

FALSE

T/F Companies today are moving away from target marketing and toward mass marketing.

FALSE

T/F Cupcake Gourmet, a high-end bakery in Manhattan, segments its customers according to those who frequent their store regularly, those who visit infrequently, and those who have never visited. This is an example of usage-rate segmentation.

FALSE

T/F Demographic variables are generally more difficult to measure than most other types of variables.

FALSE

T/F Light users are often a small percentage of a company's market but account for a high percentage of total consumption.

FALSE

T/F Marketers typically limit their market segmentation analysis to a single variable in order to simplify the process

FALSE

Pediacertain Pet Supplies, a pet-food company, divides the pet market according to the pet owners' gender, occupation, income, and family life cycle. In this case, which of the following variables has the company used for market segmentation? A) geographic B) psychographic C) benefit D) demographic E) occasion

demographic

The marketing manager at Frizzles' Eateries targets customers who are working to lose weight but who still want to dine out. The restaurant chain offers a wide variety of low-fat, low-calorie meals that appeal to dieters. Frizzles' approach is best referred to as ________ segmentation. A) age and life-cycle B) user status C) benefit D) demographic E) geographic

demographic

T/F Using a differentiated marketing strategy, a company is likely to design a product and a marketing program that will appeal to the largest number of buyers

FALSE

T/F The full positioning of a brand is called the unique selling proposition

FALSE

T/F A company or brand image should convey a product's distinctive benefits and positioning.

TRUE

Market segments that can be effectively reached and served are said to be ________. A) measurable B) accessible C) substantial D) actionable E) profitable

accessible

Delta, an American video game manufacturer, targets teens between the ages of 13 and 18, providing free game trials and applications. The firm's marketing approach exemplifies ________ segmentation. A) age and life-cycle B) geographic C) occasion D) gender E) income

age and life-cycle

One reason demographic variables are the most popular bases for segmenting customer groups is because they ________. A) create smaller segments B) create more easily accessible segments C) do not involve stereotypes D) are easier to measure than other variables E) involve fewer attributes to consider

are easier to measure than other variables

Dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product is called ________ segmentation. A) behavioral B) psychographic C) age and life-cycle D) user status E) geographic

behavioral

A brand difference is said to be preemptive if ________. A) competitors cannot easily copy the difference B) buyers can afford to pay for the difference C) the difference can be introduced profitably D) the difference is communicable E) the difference is beneficial to customers

competitors cannot easily copy the difference

If men and women respond dissimilarly to the marketing efforts for a root beer-flavored malt beverage, they are considered ________ market segments. A) accessible B) measurable C) reachable D) differentiable E) observable

differnetiable

Danko International is a multinational company that targets the BRIC countries (Brazil, Russia, India, and China) because they're fast-growing developing economies and use ________ to segment its world markets. A) political factors B) legal factors C) personality factors D) economic factors

economic factors

Gulf Coast, a wholesale shrimp distributor, groups its customers by regions in the United States, such as Midwest, Northeast, and Southwest. For each region, Gulf Coast tailors a different set of advertisements and promotions. The supplier is segmenting its market according to ________. A) behavioral factors B) personality characteristics C) geographic location D) benefits sought E) demographics

geographic location

Compared with undifferentiated marketing, differentiated marketing is more likely to lead to ________. A) reduced sales in each market segment B) weaker product position in each market segment C) higher costs of doing business D) redundancy in product design across market segments E) smaller market share in the industry

higher costs of doing business

The distinctive yellow and blue "hands held high" logo of a local daycare distinguishes it from other establishments. The logo is prominently displayed on its building, t-shirts worn by the children, and at fundraising events. The daycare has differentiated itself through ________. A) image B) people C) services D) channels E) positioning

image

When firms use symbols, colors, or characters to convey their personalities, they are using ________ differentiation. A) image B) people C) usage-rate D) user-status E) channel

image

Which type of market segmentation is generally used by marketers who sell luxury products targeted to the affluent segments of a population? A) usage rate B) occasion C) income D) benefits sought E) gender

income

The marketing manager of Refresh Inc., a leading producer of soft drinks, is considering a differentiated marketing strategy. An important consideration is weighing increased sales against ________ before selecting this strategy. A) decreased production B) increased demand C) increased costs D) decreased prices E) increased profits

increased costs

At the extreme, micromarketing becomes ________ insofar as products and marketing programs are tailored to the needs and preferences of customers. A) differentiated marketing B) multi-segmented marketing C) local marketing D) mass marketing E) individual marketing

individual marketing

Producers of popular beverages often partner with global music channels to target consumers through a variety of promotional events and advertisements. This approach to marketing is referred to as ________ segmentation. A) intermarket B) income C) age and life-cycle D) occasions E) gender

intermarket

A market segment is less attractive when ________. A) there are few aggressive competitors in the segment B) it is difficult for new entrants to enter the segment C) it contains powerful suppliers who can control prices D) substitute products are unavailable in the segment E) buyers in the market segment have weak bargaining powers

it contains powerful suppliers who can control prices

Which of the following is true about local marketing? A) It does not cater to individual stores. B) It does not support evolving technologies. C) It increases manufacturing costs. D) It increases economies of scale. E) It reduces logistical issues.

it increases manufacturing costs

A successful niche marketing strategy relies on a firm's ________. A) availability of services B) product positioning C) superior products D) knowledge of customer needs E) affordable pricing

knowledge of customer needs

Stores offering low-quality alternatives to luxury products at low prices most likely follow a ________ positioning strategy. A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) more-for-more

less-for-much-less

________ marketing tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores. A) Differentiated B) Mass C) Niche D) Local E) Individual

local

Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy? A) market segmentation, differentiation, positioning, and market targeting B) positioning, market segmentation, mass marketing, and market targeting C) market segmentation, market targeting, differentiation, and positioning D) market alignment, market segmentation, differentiation, and market positioning E) market recognition, market preference, market targeting, and market insistence

market segmentation, market targeting, differentiation, and positioning

When a company interacts one-on-one with large numbers of customers to create customer-unique value by designing products and services tailor-made to individual needs, it is engaging in ________. A) concentrated marketing B) mass marketing C) mass customization D) differentiated marketing E) local marketing

mass customization

Marketing the same product to a huge customer base without any customization is referred to as ________. A) mass marketing B) differentiated marketing C) niche marketing D) local marketing E) individual marketing

mass marketing

When the size, purchasing power, and profiles of a market segment can be determined, the market segment is said to be ________. A) measurable B) accessible C) substantial D) actionable E) observable

measurable

The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________. A) niche marketing B) micromarketing C) segmented marketing D) global marketing E) undifferentiated marketing

micromarketing

Household Storez, a local retail store, claims to offer better products at lower prices than other retail stores. In this case, the firm's positioning reflects a ________ value proposition. A) more-for-the same B) more-for-less C) same-for-less D) more-for-more E) same-for-more

more-for-less

Which of the following strategies is most likely to be followed by firms that position themselves as caterers of the best products at economical prices? A) more-for-the-same B) more-for-less C) same-for-less D) more-for-more E) less-for-much-less

more-for-less

Rad, a manufacturer of luxury watches, charges a higher price for its products than its competitors. Despite the high prices, the brand is popular among customers for its quality and service in comparison to cheaper alternatives available in the market. In this case, Rad offers a(n) ________ value proposition. A) more-for-more B) more-for-the-same C) more-for-less D) all-or-nothing E) same-for-less

more-for-more

Using a ________ positioning strategy, companies can attack the more-for-more strategy of another firm by offering a brand of comparable quality at a lower price. A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) less-for-more

more-for-the-same

Gold Class Electricals, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on ________. A) demographic variables B) geographic regions C) multiple segmentation bases D) behavioral variables E) psychographic segmentation bases

multiple segmentation bases

Argonaut Food Stores, a retail giant, hires better-skilled employees than its competitors by employing strategic recruitment practices. It also conducts highly specialized training programs for its employees. In this case, Argonaut has focused on gaining a strong competitive advantage through ________ differentiation. A) image B) people C) services D) product E) channel

people

Zeal is a popular automobile brand, and its positioning statement is: "For upscale American families who require large vehicles, Zeal is the automobile of choice." Which of the following mandatory elements is missing from the positioning statement? A) point of difference B) target audience C) brand name D) product category E) need

point of difference

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. A) Differentiation B) Positioning C) Market targeting D) Market segmentation E) Mass marketing

positioning

Which of the following includes the target segment of a product, the category to which the product belongs, and the product's point of difference from other members in the category? A) mission statement B) vision statement C) profit statement D) positioning statement E) inventory statement

positioning statement

Eastline, a manufacturer of outdoor patio furniture, positions its products as superior in weatherproofing and durability. This is an example of ________ differentiation. A) product B) services C) image D) people E) channels

product

Bose promises "better sound through research." This is an example of ________. A) people differentiation B) channel differentiation C) price differentiation D) services differentiation E) product differentiation

product differentiation

Bass Pro Shops recognizes that outdoors enthusiasts are a diverse group. Likely segments include hunters, campers, and boaters. What is this segmentation method called? A) user status B) usage rate C) benefit D) behavioral E) psychographic

psychographic

________ segmentation factors divide buyers into different groups based on social class, lifestyle, or personality characteristics. A) Geographic B) Demographic C) Psychographic D) Behavioral E) User status

psychographic

Which positioning strategy offers value for consumers by providing the same brands as competitors at a lower price? A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) more-for-more

same-for-less

Companies are likely to gain ________ through speedy, convenient, or careful delivery of products. A) price differentiation B) product differentiation C) channel differentiation D) services differentiation E) people differentiation

services differentiation

Which of the following is true of perceptual positioning maps? A) They are used by marketers to divide a market into smaller groups with distinct characteristics. B) They are used by marketers to identify supplier and retailer perceptions of a product. C) They are used to analyze consumer perceptions of a brand relative to competing products. D) They are used to divide buyers into groups based on their perceived income and age. E) They are used to plot the geographic segments that a company needs to target.

they are used to analyze consumer perceptions of a brand relative to competing products

Which of the following is true of product positioning? A) A product's position is defined by the number of competitors in a market. B) Product positioning has little influence on the design of marketing mixes. C) Consumers generally reevaluate products every time they make a buying decision. D) To simplify the buying process, consumers are likely to position products in their minds. E) Consumers cannot position products with or without the help of marketers.

to simplify the buying process, consumers are likely to position products in their minds

Which of the following is an approach where firms target a whole market based on common consumer needs? A) demographic segmentation B) undifferentiated marketing C) micromarketing D) concentrated marketing E) geographic segmentation

undifferentiated marketing

Shampoo marketers segment buyers as light, medium, or heavy product users. This is an example of ________ segmentation. A) user status B) usage rate C) benefits sought D) occasion E) psychographic

usage rate

Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called ________. A) user status segmentation B) usage rate segmentation C) benefit segmentation D) behavioral segmentation E) loyalty status segmentation

user status segmentation