marketing final exam chapter 7

1. In the context of behavioral segmentation, who among the following is a potential user?

A) Anita, who recently had a baby

16. Which of the following is a drawback of local marketing?

A) Local marketing increases manufacturing costs by reducing the economies of scale.

7. Orion Inc. markets luxury watches. It targets the wealthy global elite segment, regardless of their geographic location. Orion most likely uses ________ segmentation.

A) income

10. Bailey's Burgers promotes the Bailey's Jumbo Burger as a fun snack for teens and young adults. In this instance, Bailey's Burgers is practicing ________ segmentation.

B) age and life-cycle

6. Anchor Tractors focuses on selling its farm equipment in North America and Europe. It has not yet considered expanding into the Middle East. Which factor is likely most important in this decision regarding expansion?

B) political

14. Several structural factors affect long-run segment attractiveness. These include all of the following EXCEPT ________.

B) the segment does not match the company's long-run objectives

15. Which of the following is a disadvantage of using a differentiated marketing strategy?

C) The costs of doing business increase.

5. Which of the following is NOT a benefit of using multivariable segmentation systems?

C) help companies more accurately price their products to appeal to key customer segments

17. Which of the following marketing strategies is most suitable for smaller firms with limited resources?

C) niche marketing

19. All of the following are ways a company can differentiate itself or its product EXCEPT ________.

C) price

2. A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage of the market. The study indicated that less than 7 percent of all shoppers buy nearly 71 percent of Estelle's products in the United States. This is an example of ________.

C) segmentation by usage rate

18. Market targeting can bring up concerns about privacy and abuse in all of the following ways EXCEPT ________.

C) when customers opt in to receive focused content

13. A segment is less attractive if it ________.

D) already contains many strong and aggressive competitors

8. Teen Mania Inc., a company marketing adventure sports merchandise for teenagers, targets the world's teenagers, who have similar needs and buying behavior even though they are located in different countries. Which market segmentation is evident here?

D) intermarket segmentation

20. Kinger Auto specializes in selling low-quality used vehicles that are priced a good deal lower than other used cars. Which of the following value propositions is evident here?

D) less for much less

4. Which of the following is true about multivariable segmentation systems?

E) Multiple segmentation bases help identify smaller, better-defined target groups.

9. An American cola-manufacturing company that primarily targets rebellious and adventurous people most likely uses ________ segmentation.

E) psychographic