Chp 6

10) ________ is the science of using psychology and demographics to better understand consumers. A) Psychographics B) Interactionism C) Clustering D) Demographic transition E) Customerization

A) Psychographics

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

A) company's objectives and resources

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

A) demographic variables

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

A) dividing a segment into subsegments B) conducting VALS tests

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

A) initiator

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

A) life stage

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

A) macrosegmentation

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

A) naked solution

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

A) psychographic lifestyle

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

A) single-segment concentration

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

A) single-segment concentration

73) The ultimate level of segmentation leads to "segments of one," "customized marketing," or "one-to-one marketing."

Answer: TRUE

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

A) situational factors

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

A) targeting

71) An undifferentiated marketing approach to full market coverage designs a marketing program for a product with a superior image that can be sold to the broadest number of buyers.

Answer: TRUE

72) An attractive niche consists of customers having a distinct set of needs.

Answer: TRUE

74) The niche marketing strategy used by Tom's of Maine, which used concentrated marketing, is in line with an individual marketing strategy.

Answer: FALSE

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.

B) A segment is unattractive if buyers possess strong or growing bargaining power.

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.

B) It diversifies the firm's risk.

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

B) demographic variables

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

B) differentiated

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

B) flexible market

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

B) market positioning

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

B) mass

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

B) split loyals

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

B) substantial

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

C) age

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

C) differentiated

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

C) personal characteristics

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"

C) segment attractiveness

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.

D) Gen Xers prize self-sufficiency and are pragmatic.

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.

D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants.

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

D) Step 1-needs-based segmentation

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

D) accessible

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

D) differentiable

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

D) segment "acid test"

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"

D) segment positioning

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

D) user status

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

E) actionable

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

E) consumer motivation

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

E) grassroots marketing

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

E) operating variables

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

E) segment identification

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

E) wanting to turn back the hands of time

24) Illustrations of personality segmentation would include culture-oriented, sports-centered, or outdoor-oriented subsegments.

FALSE

27) Marketers can assume that people who buy a given product want the same benefits from it.

FALSE

28) Hard-core loyals can show the firm which brands are most competitive with its own.

FALSE

30) Business segmentation based on purchasing approaches may divide the market by technology, user and nonuser status, and general purchasing policies.

FALSE

53) The most attractive segment is one in which entry barriers are low and exit barriers are high.

FALSE

54) A segment is attractive when there are actual or potential substitutes for the product.

FALSE

62) All attempts to target marketing to children, minorities, or other special segments are discriminatory and unethical.

FALSE

23) A market segment consists of a group of consumers who share a similar set of needs and wants.

TRUE

25) A local service company has decided to segment its market based on occupation; therefore, it has chosen a form of demographic segmentation for its approach.

TRUE

26) Demographic variables are popular because they are often associated with consumer needs and wants and they are easy to measure.

TRUE

29) Door-to-door workers in a political campaign use attitude to determine how much time to spend with each voter.

TRUE

31) For segmenting a business market, situational factors include urgency, specific application, and size of order.

TRUE

32) With respect to business market offerings, if a marketer emphasizes a naked solution, he or she is emphasizing the product and service elements that all segment members value.

TRUE

55) A segment is unattractive if the company's suppliers are able to raise prices or reduce quantity supplied.

TRUE

56) The last step in the seven-step marketing segmentation process would be to develop a marketing-mix strategy reflective of segment positioning strategies.

TRUE

57) To be useful, market segments must be measurable.

TRUE