IBM 3012 Chapter 7 Study Guide

31. According to your text, the segmentation base that is often the most difficult to use is A. behavioral segmentation. B. geographic segmentation. C. lifestyle segmentation. D. psychographic segmentation. E. demographic segmentation.

A. behavioral segmentation.

53. According to your text, what tool provides an excellent framework to determine if a firm will be successful targeting a specific segment? A. a SWOT analysis B. Maslow's hierarchy of needs C. a perceptual map D. a positioning map E. a segmentation analysis

A. a SWOT analysis

57. What type of targeting strategy works with uniform products for which the firm can develop a single marketing mix that satisfies the needs of all customers? A. an undifferentiated targeting strategy B. a geographic targeting strategy C. a niche marketing strategy D. a concentrated marketing strategy E. a differentiated targeting strategy

A. an undifferentiated targeting strategy

55. Undifferentiated targeting is a strategy that A. approaches the marketplace as one large segment. B. simultaneously pursues several different market segments with a different strategy for each. C. involves pursuing a large share of a small market. D. uses a different marketing strategy for each segment. E. markets the same product to multiple regions.

A. approaches the marketplace as one large segment.

33. What type of business-to-business segmentation allows B2B marketers to segment based on purchasing patterns, supplier requirements, and technological orientation? A. behavioral B. geographic C. demographic D. lifestyle E. psychographic

A. behavioral

26. The VALS framework classifies adults into eight psychographic groups: Innovators, Thinkers, Believers, Achievers, Strivers, Experiencers, Makers, and A. Creators. B. Survivors. C. Seekers. D. Fighters. E. Skeptics.

B. Survivors.

15. Quentin is a realtor selling high-end homes priced over $750,000. Before showing a property to prospective clients, Quentin makes sure they are pre-qualified for a home loan commensurate with the price of the house. This pre-qualification is based mainly on the client's income, which is what type of segmentation variable? A. demographic B. psychographic C. behavioral D. financial E. geographic

A. demographic

60. A firm marketing its product in the United States and abroad may have to tweak the product for its international customers and as such may have to market it differently. What type of targeting strategy would work best for this situation? A. differentiated B. niche C. undifferentiated D. geographic E. concentrated

A. differentiated

73. According to your text, what step in deciding how to position a product should be done on a continual basis since consumer tastes change for almost every product? A. evaluate feedback B. analyze competitors positions C. review the perceptual map D. define the product's competitive advantage E. undergo market segmentation

A. evaluate feedback

38. Which international segmentation base usually results in market segments made up of young people, those that have more money to spend, or those with access to the Internet? A. global B. cultural C. national D. regional E. unique

A. global

3. A defined in your text, market segmentation involves dividing a larger market into smaller market segments based on A. meaningfully shared characteristics. B. shopping habits. C. potential interest in a product. D. geographic region. E. available sales force.

A. meaningfully shared characteristics.

19. Free-standing areas with a core urban population of at least 50,000 are what the U.S. Census Bureau calls A. metropolitan statistical areas. B. urban numerical areas. C. major cities. D. metropolitan districts. E. urban statistical areas.

A. metropolitan statistical areas.

25. Stores like Cabela's, REI, and Bass Pro Shops that cater to outdoor enthusiasts' most likely use what type of segmentation strategy? A. psychographic segmentation B. socioeconomic segmentation C. demographic segmentation D. geographic segmentation E. behavioral segmentation

A. psychographic segmentation

75. Today's health conscious society has caused cereal manufacturers to rethink their products. Now many cereals such as Frosted Flakes are being marketed as being healthier because they are made with whole grains and have less sugar. This is an example of A. repositioning. B. remarketing. C. remanufacturing. D. resegmenting. E. retargeting.

A. repositioning.

41. Which market segment criteria refers to the fact that segments must be large enough for the firm to make a profit by serving them? A. substantial B. differentiable C. measurable D. accessible E. actionable

A. substantial

47. Carson has opened up a new sports bar/restaurant in town. He has determined that his market segments are (1) students from the nearby college campus, (2) families with small children, and (3) young adult males. Carson now has to determine which of these segments will provide him with the best opportunity to maximize sales. The process of doing this is referred to as A. targeting. B. positioning. C. segmenting. D. marketing. E. repositioning.

A. targeting.

13. Marketers particularly target older Americans because A. they tend to have more time and money than other consumers. B. they tend to pay more attention to advertisements than other consumers. C. they tend to be more educated than other consumers. D. there are more products available to that age group. E. they purchase products not only for themselves, but also for their family members.

A. they tend to have more time and money than other consumers.

67. Regarding positioning a product, when is competitive analysis most important? A. when competitors all appear to offer a similar good or service B. when a product is unique compared to what other firms are offering C. when selecting a target market for a product D. when determining how to segment the market E. when competitors all appear to offer lower priced options

A. when competitors all appear to offer a similar good or service

63. Read the following and select which one best represents a growing ethical concern in targeting certain market segments. A. Miller Brewing Company targeting its beer product line to sporting fans B. Abercrombie and Fitch targeting tweens with sexualized clothing C. Lane Bryant targeting clothing for plus-sized women D. Sears giving discounts to military, fire, and police personnel E. Skype.com targeting older Americans as a way to connect with their grandchildren

B. Abercrombie and Fitch targeting tweens with sexualized clothing

34. Read the following statements to select which one is accurate regarding the use of social media in market segmentation. A. Social media is not very helpful in segmenting markets, but it can be a useful tool for marketers once the market has already been segmented. B. By segmenting the market by those who are active on social media, companies can connect with a larger and more diverse consumer base. C. Social media is most helpful in reaching out to older Americans and senior citizens. D. As of yet, social media has not been proven to be an effective tool for segmenting markets. E. As compared to traditional segmenting techniques, it is easier to know exactly how to engage consumers on social networking sites.

B. By segmenting the market by those who are active on social media, companies can connect with a larger and more diverse consumer base.

66. The first step marketers should take when deciding how best to position their product is to A. clearly define its competitive advantage. B. analyze competitors' positions. C. evaluate consumer feedback. D. define the product attributes that make it unique. E. determine what market segments will be interested in the product.

B. analyze competitors' positions

10. Demographic segmentation divides markets by A. geographic location. B. characteristics such as age, gender, and income. C. characteristics such as loyalty and price sensitivity. D. consumer attitudes. E. psychological traits.

B. characteristics such as age, gender, and income.

20. The fact that you see a Starbucks on practically every corner would indicate that Starbucks is most likely geographically segmenting based on A. market size. B. customer convenience. C. population shifts. D. income. E. lifestyle.

B. customer convenience.

8. Which of the following is NOT one of the broad segmentation bases outlined in your text that can be used to segment a market? A. demographic B. demand C. geographic D. psychographic E. behavioral

B. demand

43. An auto insurance company segmented its market by both gender and age, and designed different marketing campaigns to appeal to both. In the end, both segments responded the same to the different marketing strategies, in part, because both segments are required to have auto insurance. This firm failed to understand the criteria of market segments needing to be A. substantial. B. differentiable. C. measurable. D. accessible. E. actionable.

B. differentiable.

59. Rico's firm manufactures homemade salsa. His product is sold around the country, but he adds extra jalapenos to his product sold in Texas, New Mexico, and Arizona because those customers prefer the extra heat and spice. Rico also markets the product differently based on the region of the country where it is sold. This represents what type of targeting strategy? A. niche B. differentiated C. undifferentiated D. geographic E. concentrated

B. differentiated

28. Behavioral segmentation divides consumers according to A. consumers' opinion and interests. B. how consumers behave with or act towards products. C. customer convenience and market size. D. the various lifestyles of the consumer. E. how motivated and how many resources a consumer has.

B. how consumers behave with or act towards products.

1. The process of dividing a larger market into smaller groups based on meaningfully shared characteristics is referred to as A. mass marketing. B. market segmentation. C. positioning. D. concept testing. E. market fragmentation.

B. market segmentation.

61. A targeting strategy that involves pursuing a large share of a small market segment is referred to as A. differentiated targeting. B. niche marketing. C. undifferentiated targeting. D. geographic targeting. E. lifestyle marketing.

B. niche marketing.

68. The competitive analysis tool that creates a visual picture of where products are located in consumers' minds is called a A. positioning map. B. perceptual map. C. conceptual map. D. marketing map. E. competitive map.

B. perceptual map.

22. Psychographic segmentation refers to the science of segmenting markets based on A. consumers' opinions and interests. B. psychology and demographics. C. behavior and demographics. D. consumers' income and behavior. E. psychology and geography

B. psychology and demographics.

6. Market segments are A. the various types of advertising and promotional campaigns used to sway consumer interest in a product. B. relatively homogenous groups of consumers that result from the segmentation process. C. the different geographical areas in which a product must be marketed differently. D. the two buying groups: those that have never purchased a firm's product, and those that are potential repeat customers. E. relatively heterogeneous groups of consumers that result from the segmentation process.

B. relatively homogenous groups of consumers that result from the segmentation process.

52. What factor of the targeting process is at work when a marketer ensures that the target market is appropriate for what the organization is and wants to be as defined in its mission statement? A. growth potential B. strategic fit C. cultural awareness D. organizational fit E. segment harmony

B. strategic fit

50. According to your text, when selecting a target market, firms should consider three important factors: growth potential, level of competition, and A. proximity to the market. B. strategic fit. C. profitability timeframe. D. cultural factors. E. economic conditions.

B. strategic fit.

46. When a company evaluates each market segment to determine which segment or segments present the most attractive opportunity to maximize sales, it is engaged in A. positioning. B. targeting. C. segmenting. D. situation analysis. E. repositioning.

B. targeting.

40. To be effective, segmentation should create market segments that rate favorably on various criteria. Which of the following is NOT one of the criteria outlined in your text? A. substantial B. variable C. measurable D. accessible E. actionable

B. variable

7. Read the following statements to select the choice that is NOT true of market segmentation. A. Market segmentation helps firms define the needs and wants of the customers who are most interested in buying the firm's products. B. Market segmentation helps firms design specific marketing strategies for the characteristics of specific segments. C. Market segmentation identifies which products will be profitable and which ones are not worth pursuing. D. Market segmentation helps firms decide how to allocate their marketing resources in a way that maximizes profit. E. Market segmentation results in identifying the relatively homogenous groups of consumers that a firm can market its product to.

C. Market segmentation identifies which products will be profitable and which ones are not worth pursuing.

37. As it pertains to international segmentation, global segmentation refers to identifying A. products that can be marketed in the same way across the globe. B. similar patterns in cultures that can be used to segment a market. C. a group of consumers with common needs and wants that spans the entire globe. D. products that will have a global appeal. E. markets that will be favorable for exporting products internationally.

C. a group of consumers with common needs and wants that spans the entire globe.

45. When a firm is reasonably certain that its marketing mix can inform consumers about the product, how it adds value to the consumer, and ultimately how to purchase it, then the firm rates favorably on which market segment criteria? A. substantial B. differentiable C. actionable D. accessible E. measurable

C. actionable

69. An advantage to using a perceptual map is that it A. it is the quickest way to determine market segments. B. shows how other companies are marketing their products. C. can highlight potential market positions that might be underserved. D. shows which products of a firm are most profitable. E. shows the firms strengths, weaknesses, opportunities and threats.

C. can highlight potential market positions that might be underserved.

72. When highlighting a product's competitive advantage based on attributes, a firm will A. show how its product is priced lower than the competition. B. show how its product use can be advantageous to the customer. C. concentrate on the unique aspects of the product that sets it apart from the competition. D. develop a relationship with the target market that will enhance the product's brand. E. remind customers the value of the product received in comparison to its price.

C. concentrate on the unique aspects of the product that sets it apart from the competition.

32. Business-to-business firms generally segment their markets according to what three variables? A. market size, customer convenience, and usage rate B. demographic, geographic, and psychographic C. demographic, geographic, and behavioral D. price sensitivity, usage rate, and region E. profit potential, price sensitivity, and demand

C. demographic, geographic, and behavioral

4. Market segmentation refers to A. having regional sales forces that can market a product according to geographic area. B. taking an overall marketing plan and dividing it into smaller campaigns based on each product. C. dividing a larger market into smaller groups based on meaningfully shared characteristics. D. redesigning or repositioning a product so it meets the needs of a target market. E. marketing a product so that each and every consumer can get value from it.

C. dividing a larger market into smaller groups based on meaningfully shared characteristics.

17. Contractors that advertise the ability to turn home attics or the space above a garage into living areas are most likely targeting their market based on the demographic variable of A. income. B. gender. C. family size. D. usage rate. E. neighborhoods.

C. family size.

14. Which of the following is a demographic segmentation variable? A. lifestyle B. motivation C. gender D. market size E. population shifts

C. gender

24. A psychographic segmentation variable that divides people into groups based on their opinion and the interests and activities they pursue is called A. behavioral segmentation. B. socioeconomic segmentation. C. psychological segmentation. D. social segmentation. E. lifestyle segmentation.

E. lifestyle segmentation

42. When it comes to criteria for segmenting markets, it is important that the size and purchasing power of a market segment should be clearly identified. In other words, it should be A. identifiable. B. differentiable. C. measurable. D. accessible. E. actionable.

C. measurable.

27. According to the VALS framework, why different consumer groups exhibit different behaviors or why different consumer groups exhibit the same behaviors for different reasons is based on A. opinion and interests. B. lifestyle and income. C. motivation and resources. D. opinion and resources. E. motivation and desire.

C. motivation and resources.

74. A succinct description of the core target market to which a product is directed and a compelling picture of how the firm wants that core market to view the product is called a A. mission statement. B. marketing plan. C. positioning statement. D. vision statement. E. business plan.

C. positioning statement.

39. As it pertains to international segmentation, unique segmentation is used when A. a firm can identify a group of consumers with common needs and wants that spans the entire globe. B. the similarity in needs and wants only extends across the region or several countries. C. the similarity in needs and wants exists within one country. D. a product offering has market appeal in several countries. E. a product offering has market appeal only in English-speaking regions.

C. the similarity in needs and wants exists within one country.

65. According to your text, positioning assumes that consumers A. will always want to pay the lowest price possible for a product. B. are followers and will only buy products that appeal to their friends as well. C. will compare goods and services on the basis of benefits. D. are innovators and will always want the latest and most innovative products. E. will make up their own minds about a product, regardless of how it is marketed.

C. will compare goods and services on the basis of benefits.

5. Market segmentation produces relatively homogenous groups of consumers called A. consumer segments. B. consumer targets. C. market sectors. D. consumer clusters. E. market segments.

E. market segments.

35. Which of the following is NOT characteristic of gathering the information needed to engage in international market segmentation? A. Obtaining the information required to segment international markets is both costly and difficult. B. The information needed to segment international markets may be hard to come by. C. Not all countries collect or classify their data in the same way. D. Social media sites and the Internet have made it possible to collect all the information needed to segment international markets. E. It is practically impossible to compare the data received across nations in order to form a segment.

D. Social media sites and the Internet have made it possible to collect all the information needed to segment international markets.

58. Firms that market the same product to multiple regions with different preferences may need to tweak the product to ensure that it meets a need unique to each segment. This represents what type of targeting strategy? A. an undifferentiated targeting strategy B. a geographic targeting strategy C. a niche marketing strategy D. a differentiated marketing strategy E. a concentrated targeting strategy

D. a differentiated marketing strategy

9. What are the two most commonly used demographic variables used by marketers? A. age and income B. gender and income C. education and family size D. age and gender E. family size and age

D. age and gender

18. Segmentation based on where prospective consumers live, work, and spend their leisure time is referred to as A. regional segmentation. B. demographic segmentation. C. residential segmentation. D. geographic segmentation. E. proximity segmentation.

D. geographic segmentation.

2. It has been Shelly's dream to open a bakery, and while she has experience in making all types of baked goods, she always gets rave reviews for her hand-decorated cupcakes. So, rather than open a bakery that offers a wide variety of baked goods, Shelly has decided to open a specialty cupcake shop to cater to that market only. This is an example of A. mass marketing. B. market fragmentation. C. repositioning. D. market segmentation. E. limited marketing.

D. market segmentation.

64. The activities a firm undertakes to create a certain perception of its product in the eyes of the target market is referred to as A. segmenting. B. targeting. C. conceptualizing. D. positioning. E. categorizing.

D. positioning.

71. Both Sam's Club and Costco have positioned themselves as providing a variety of items to shoppers at prices lower than retail stores. These stores have positioned themselves based on A. application. B. attributes. C. product knowledge. D. price/quality relationship. E. personalized sales support.

D. price/quality relationship.

48. The group of customers toward which an organization has decided to direct its marketing efforts is called its A. marketing segment. B. primary segment. C. primary market. D. target market. E. target sector.

D. target market.

49. After Carson opened up his new sports bar/restaurant, he determined that students from the nearby college campus will provide him with the best opportunity to maximize sales, so he is concentrating his marketing efforts on this group which will be his A. marketing segment. B. primary segment. C. primary market. D. target market. E. target sector.

D. target market.

11. One of the most important sources of demographic information for marketers, which of the following provides free information on data such as how households are segmented by race, education, age, and occupation? A. ACNielsen Company B. Consumer Reports C. the Social Security Administration D. the U.S. Census Bureau E. the U.S. Bureau of Labor Statistics

D. the U.S. Census Bureau

23. When marketers segment based on psychographics, the market is divided into groups according to A. a consumer's income and interest in the product. B. how consumers act toward products. C. how convenient the product is for the consumer. D. the reason why the consumer made the purchase. E. family size and marital status.

D. the reason why the consumer made the purchase.

54. Which of the following represents the three basic strategies for targeting markets? A. primary targeting, secondary targeting, and specialized marketing B. targeting by product, targeting by price, and targeting by customer C. demographic targeting, geographic targeting, and psychographic targeting D. undifferentiated targeting, differentiated targeting, and niche marketing E. print advertising, sales promotion, and public relations

D. undifferentiated targeting, differentiated targeting, and niche marketing

29. Which of the following is a behavioral segmentation variable? A. population shifts B. customer convenience C. family size D. usage rate E. lifestyle

D. usage rate

30. The 80/20 rule is a theory that suggests that A. 80 percent of a firm's profits is generated from 20 percent of its product line. B. 80 percent of a firm's products are marketed to only 20 percent of the population. C. 20 percent of the total demand for products comes from 80 percent of the target market. D. 20 percent of a firm's products are never marketed to 80 percent of consumers. E. 20 percent of heavy users account for 80 percent of the total demand.

E. 20 percent of heavy users account for 80 percent of the total demand.

21. According to the 2010 U.S. Census, which is the only southern state that lost seats in the House of Representatives due to population shifts out of the state? A. Texas B. Arizona C. Florida D. South Carolina E. Louisiana

E. Louisiana

44. What does the criteria accessible mean regarding market segments? A. Segments must be large enough for the firm to make a profit by serving them. B. The size and purchasing power of the segment should be clearly identified. C. Marketers should develop strategies that can attract a market to its products. D. Markets should be clearly identified with appropriate strategies developed for each. E. Marketers must be able to reach and serve the segment.

E. Marketers must be able to reach and serve the segment.

51. What can be said of the level of competition when selecting a target market? A. The more intense the competition within a segment, the more attractive it is to marketers. B. The more competitors there are within a segment, the less of a chance there is for price wars. C. The more competitors there are within a segment, the less a company will have to spend to reach out to consumers. D. A market segment is less attractive to marketers if there are only a few competitors for that segment. E. The more competitors there are, the more a firm will have to invest in promotion to increase market share.

E. The more competitors there are, the more a firm will have to invest in promotion to increase market share.

12. Clif Bar & Company, makers of energy and nutrition bars, expanded their product line to include Clif Kid Z Bars. These bars are specifically designed to provide the right kind of nutrition for growing children. For this product, Clif Bar & Company is segmenting the market based on A. lifestyle. B. customer convenience. C. motivation. D. gender. E. age.

E. age.

56. The potential savings in developing and marketing the product is the major advantage of A. a differentiated targeting strategy. B. a geographic targeting strategy. C. a niche marketing strategy. D. a specialized marketing strategy. E. an undifferentiated targeting strategy.

E. an undifferentiated targeting strategy.

70. The second step in deciding how best to position a product is to A. analyze competitors' positions. B. evaluate consumer feedback. C. assess the product's profit potential. D. conduct test marketing on the product. E. clearly define the product's competitive advantage.

E. clearly define the product's competitive advantage.

16. American households that have between $100,000 and $250,000 in investable assets are one of the fastest growing segments in the United States and are referred to as A. ultra-rich. B. the well-to-dos. C. the massively wealthy. D. ultra-prosperous. E. mass affluent.

E. mass affluent.

62. College Prep Tutors is a business that tutors high-school students who are preparing to take the ACT test as part of their college entrance requirements. Because it possesses a unique offering that is desirable to a specific market, College Prep Tutors would most likely use what type of target market strategy? A. differentiated targeting B. lifestyle marketing C. undifferentiated targeting D. mass marketing E. niche marketing

E. niche marketing

36. Firms typically segment international markets using three general bases: global, regional, and A. national. B. cultural. C. political. D. economic. E. unique

E. unique