MKTG CH 7 Exam 1

Which of the following is NOT one of the major variables used in segmenting consumer markets? A) demographic B) behavioral C) ethical D) geographic E) psychographic

C) ethical

the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.

Micromarketing

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

Positioning

Which of the following is true about the concentrated marketing strategy? A) Companies that rely on a few segments for all of their business will suffer if a segment turns sour. B) Concentrated marketing is not profitable for most firms. C) Niche marketing involves few risks for most firms. D) Concentrated marketing involves going after a small share of a large market. E) The Internet has limited the use and benefits of niche marketing.

A) Companies that rely on a few segments for all of their business will suffer if a segment turns sour.

Which of the following is a drawback of local marketing? A) Local marketing increases manufacturing costs by reducing the economies of scale. B) Local marketing requires specialization that is difficult to identify. C) Local marketing is not profitable for most small firms. D) Local marketing cannot accommodate the needs of modern buyers who are technology savvy. E) Local marketing almost always results in brand dilution.

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

A catalog retailer in the United States has identified African American professionals between the ages of 35 and 45 as a group of potential customers for its products. The retailer plans to direct its marketing efforts toward this group of consumers. Which of the following market segmentation variables did the catalog retailer most likely use? A) demographic B) psychographic C) user status D) loyalty status E) usage rate

A) demographic

Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods. This is an example of ________. A) geographic segmentation B) product diversification C) branding D) psychographic segmentation E) demographic segmentation

A) geographic segmentation

Venus Inc., a company designing and marketing branded diamond jewelry, targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________ segmentation. A) intermarket B) loyalty C) life-cycle D) income E) psychographic

A) intermarket

Andrew Levitt runs a retail store in Norristown. Andrew's store stocks cold weather products as Norristown mostly has sub-zero temperatures. Which of the following is evident here? A) local marketing B) concentrated marketing C) segmented marketing D) mass marketing E) direct marketing

A) local marketing

When the size, purchasing power, and profile of a market segment can be calculated, the market is ________. A) measurable B) profitable C) substantial D) actionable E) competitive

A) measurable

Tropicana promotes drinking orange juice at any time of day as a cool, refreshing drink. The market segmentation approach Tropicana is using is ________. A) occasion segmentation B) benefit segmentation C) age and life-cycle segmentation D) gender segmentation E) behavioral segmentation

A) occasion segmentation

Which of the following refers to a behavioral segmentation variable that involves segmenting markets into nonusers, ex-users, potential users, first-time users, and regular users of a product? A) user status B) usage rates C) gender status D) income status E) loyalty status

A) user status

Which of the following is true about behavioral segmentation on the basis of the loyalty variable? A) Consumers tend to pay more for products that are targeted at their respective age group or generation. B) By looking at customers who are shifting away from its brand, a company can learn about its marketing weaknesses and take actions to correct them. C) Highly loyal customers of a brand are less likely to engage in word-of-mouth publicity than those who are not. D) Completely loyal customers of a brand are typically loyal to two or three brands of a given product. E) Only consumers who seek premium or luxury services are subjected to behavioral segmentation based on the loyalty variable.

B) By looking at customers who are shifting away from its brand, a company can learn about its marketing weaknesses and take actions to correct them.

________ segmentation has long been used in clothing, cosmetics, toiletries, and magazines. A) Behavioral B) Gender C) Benefit D) Occasion E) Geographic Answer: B

B) Gender

________ positioning involves meeting consumers' lower performance or quality requirements at a much lower price. A) More for less B) Less for much less C) Same for less D) More for more E) More for the same

B) Less for much less

________ marketing is more suited for uniform products, such as grapefruit or steel. A) Niche B) Undifferentiated C) One-to-one D) Trigger-based E) Local

B) Undifferentiated

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

B) accessible

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. A) benefit B) age and life-cycle C) psychographic D) geographic E) gender

B) age and life-cycle

Consumers who show their allegiance to brands, stores, or companies help marketers to segment consumers by their ________. A) user status B) degree of loyalty C) income D) geographic location E) benefit-seeking attitudes

B) degree of loyalty

GamaPix makes point-and-shoot cameras and handycams for amateur photographers and hobbyists. It also has a separate line of cameras dedicated to professional photographers. Additionally, it designs separate offers for each segment. Which of the following marketing strategies does GamaPix most likely use in this instance? A) mass marketing B) differentiated marketing C) individual marketing D) local marketing E) direct marketing

B) differentiated marketing

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? A) geographic B) political C) demographic D) personality E) cultural

B) political

Papillon, a popular retailer of chic women's clothing, segments its market according to consumer lifestyles. Papillon most likely uses ________ segmentation for segmenting its market. A) geographic B) psychographic C) benefit D) age and life-cycle E) occasion

B) psychographic

A company selling child-care products ran a television ad depicting women as being primarily responsible for childcare. Many women viewers considered this regressive, alleging that the ad failed to recognize the much more diversified role of women in today's world. This is an example of ________. A) cause marketing B) stereotyping C) niche marketing D) scapegoating E) positioning

B) stereotyping

Shine Enterprises mass produces an all-purpose floor cleaner that is aimed at the whole market. This firm uses a(n) ________ marketing strategy. A) segmented B) undifferentiated C) individual D) niche E) one-to-one

B) undifferentiated

Jean Malone, a market researcher, recently found that most people in Bradburg County purchase automobiles with predominantly functional designs and prefer darker colors. Which of the following marketing strategies should Jean most likely recommend to an automobile dealer interested in opening a dealership in Bradburg County? A) one-to-one marketing B) undifferentiated marketing C) segmented marketing D) individual marketing E) direct marketing

B) undifferentiated marketing

Which of the following is a disadvantage of using a differentiated marketing strategy? A) It generates far lower sales compared to an undifferentiated marketing strategy. B) Customer loyalty is negatively impacted and difficult to obtain. C) The costs of doing business increase. D) Quality control problems increase. E) Product safety decreases.

C) The costs of doing business increase.

Calypso Motors recently rolled out its Proteus hatchback. Proteus combines the attractiveness of a luxury car with the excellent agility of a sports car. Calypso Motors is confident that Proteus will appeal to both sports car enthusiasts as well as the luxury segment. Which of the following types of market segmentation is evident here? A) gender segmentation B) income segmentation C) benefit segmentation D) geographic segmentation E) age and life-cycle segmentation

C) benefit segmentation

With a(n) ________ marketing strategy, a firm goes after a large share of one or a few smaller niches. A) individual B) mass C) concentrated D) differentiated E) local

C) concentrated

Which of the following variables are the most popular for marketers to use in segmenting customer groups? A) ethical B) psychographic C) demographic D) behavioral E) geographic

C) demographic

Which of the following is NOT a benefit of using multivariable segmentation systems? A) help companies identify key customer segments B) help companies reach key customer segments more efficiently C) help companies more accurately price their products to appeal to key customer segments D) help companies better understand key customer segments E) help companies tailor market offering to the needs of the key customer segments

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

Malcolm Sanders, a graduate student from Boston, makes customized snowboards for local snowboarding enthusiasts. The demand for snowboards peaks during the winter months, a busy time for Malcolm. He advertises more aggressively and sells most of his snowboards around this time. Which market segmentation approach does Malcolm most likely use? A) gender segmentation B) psychographic segmentation C) occasion segmentation D) geographic segmentation E) age and life-cycle segmentation

C) occasion segmentation

All of the following are ways a company can differentiate itself or its product EXCEPT ________. A) services B) channels C) price D) people E) image

C) price

Stores such as Walmart, Best Buy, PetSmart, David's Bridal, and DSW Shoes use ________ positioning. A) more for the same B) more for less C) same for less D) less for much less E) more for more

C) same for less

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 ________. A) benefit segmentation B) segmentation by loyalty status C) segmentation by usage rate D) psychographic segmentation E) occasion segmentation

C) segmentation by usage rate

A market segment that is large enough or profitable enough to serve is ________. A) measurable B) accessible C) substantial D) profitable E) differentiable

C) substantial

Market targeting can bring up concerns about privacy and abuse in all of the following ways EXCEPT ________. A) when marketing toward children B) when entertainment and commercial content blend C) when customers opt in to receive focused content D) when deceptive messaging is used E) when e-mails are personalized based on Internet searches by the customer

C) when customers opt in to receive focused content

________ marketing is more suited for products that vary in design. A) Mass B) Local C) Direct D) Differentiated E) Individual

D) Differentiated

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

D) actionable

Companies know they cannot appeal to all buyers in the marketplace, or at least not in the same way. Reasons for this include all of the following EXCEPT ________. A) buyers are too numerous B) companies vary widely in their abilities to serve different market segments C) buyers are varied in their needs and buying practices D) companies need more information to offer the right products to the right customers E) buyers are widely scattered

D) companies need more information to offer the right products to the right customers

Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here? A) geographic segmentation B) benefit segmentation C) occasion segmentation D) demographic segmentation E) psychographic segmentation

D) demographic segmentation

Gilron Holidays runs a premium membership club that caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts at select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach. A) gender B) benefit C) occasion D) income E) geographic

D) income

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? A) income segmentation B) psychographic segmentation C) gender segmentation D) intermarket segmentation E) occasion segmentation

D) intermarket segmentation

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes many college students, as an untapped group of potential customers for their new line of products, they were engaging in ________. A) occasion segmenting B) local marketing C) market diversification D) market targeting E) product positioning

D) market targeting

An Irish company that manufactures umbrellas and ponchos primarily targeting consumers during the winter months is using ________ segmentation. A) psychographic B) income C) geographic D) occasion E) benefit

D) occasion

Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals. A) demographic segmentation B) geographic segmentation C) benefit segmentation D) psychographic segmentation E) occasion segmentation

D) psychographic segmentation

Business information services such as Experian Marketing Services and Nielsen help marketers to ________. A) save significant amounts of money on shipping products B) spend more time identifying potential customers C) learn more specific details from consumers about their products D) segment people and locations into marketable groups of like-minded consumers E) expand their product offerings to interested clients and provide high-quality service to them

D) segment people and locations into marketable groups of like-minded consumers

divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

Demographic segmentation

________ can be a poor predictor of a person's health, work or family status, needs, or buying power. A) Occupation B) Education C) Ethnicity D) Religion E) Age

E) Age

________ positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs. A) More for the same B) More for less C) Same for less D) Less for much less E) More for more

E) More for more

Which of the following is true about multivariable segmentation systems? A) Marketers using multiple segmentation bases tend to ignore smaller markets. B) Marketers often use multiple segmentation bases to control inflation. C) Multiple segmentation rarely involves the use of demographic data. D) Multiple segmentation is ineffective in large markets. E) Multiple segmentation bases help identify smaller, better-defined target groups.

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

An American cola-manufacturing company that primarily targets rebellious and adventurous people most likely uses ________ segmentation. A) occasion B) geographic C) income D) benefit E) psychographic

E) psychographic

While there may be many differences between brands, not all are meaningful or relevant to consumers. Which of the following is NOT a criterion for establishing the value of a difference to promote? A) superior; the difference is superior to other ways that customers might obtain the same benefit B) affordable; buyers can afford to pay the difference C) profitable; the company can introduce the difference profitably D) important; the difference delivers a highly valued benefit to target buyers E) visually appealing; customers will be able to see and appreciate the difference

E) visually appealing; customers will be able to see and appreciate the difference

Mass marketing involves identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.

FALSE

Firms that practice product differentiation gain competitive advantage through the way they design their channel's coverage, expertise, and performance.

False

Marketers usually limit their segmentation analysis to only one major variable.

False

Niche marketing involves tailoring brands and promotions to the needs and wants of local customer groups—cities, neighborhoods, and even specific stores.

False

When segmenting by usage rate, markets can be segmented into nonusers, ex-users, potential users, first-time users, and regular users of a product.

False

When segmenting by user status, markets are segmented into light, medium, and heavy product users.

False

With technology advances making it simple to contact many customers at once, companies have moved toward mass marketing over target marketing.

False

divides buyers into different segments based on lifestyle or personality characteristics.

Psychographic segmentation

A product position is the way a product is defined by consumers on important attributes.

True

Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

True

Individual marketing is also known as one-to-one marketing, mass customization, and markets-of-one marketing.

True

Less-for-much-less positioning involves meeting consumers' lower performance or quality requirements at a much lower price.

True

The customer-driven marketing strategy involves four steps: market segmentation, market targeting, positioning, and differentiation.

True

To the extent that a company can differentiate and position itself as providing superior customer value, it gains competitive advantage.

True

When using a niche marketing strategy, a firm goes after a large share of one or a few smaller segments.

True

Which of the following service sectors was newly created by the NAICS to better reflect the economy of the 21st century? a. Healthcare and social assistance b. Finance, insurance, and real-estate services c. Public administration d. Wholesale and retail trade

a. Healthcare and social assistance

Praga is an automobile manufacturing company that makes cars. Praga buys steel, aluminum, paints, car engines and other necessary components from various suppliers around the world and assembles them together to make a final product. Praga belongs to the _____ component of the business-to-business market. a. commercial market b. trade industries c. institutions d. governmental organizations

a. commercial market

When the B2B market is segmented on the basis of product specifications issued by buyers, it is known as _____ segmentation. a. customer-based b. end-use application c. demographic d. purchase category

a. customer-based

Abel building solutions, a steel manufacturing company that supplies steel to various construction companies, segments its customers based on the number of employees in the company and the sales revenue generated by it. This strategy is used by Abel to develop specific marketing plans for their customers. Abel is segmenting its customers on the basis of: a. demographic characteristics. b. service provided. c. buyer specifications. d. end-use application.

a. demographic characteristics.

Texas Instruments produces electronic chips used in a variety of devices, from cell phones to hand calculators. The specifications of the chips change depending on the final product in which they are utilized. The company is most likely to segment its customers based on: a. end-use application. b. purchase category. c. psychographic characteristics. d. demographic characteristics.

a. end-use application.

Which of the following components of B2B market includes all individuals and firms that acquire goods and services to support production of other goods and services? a. Stock exchanges b. Commercial markets c. Governmental organizations d. Financial institutions

b. Commercial markets

Delhaise, a leading service provider in hospitality industry, segments its business clients based on the services required by them, in order to meet their specific requirements. They modify their services based on the needs of the clients. Which of the following segmentation approaches is being employed by Delhaise? a. End-use application segmentation b. Customer-based segmentation c. Geographic segmentation d. Demographic segmentation

b. Customer-based segmentation

Which of the following is one of the four major categories that define the business market? a. Stock exchanges b. Governmental organizations c. Labor unions d. Lobbying groups

b. Governmental organizations

Zardo, Inc. divides its customers into the following categories: manufacturers, retailers, government agencies, and not-for-profit institutions. Which of the following types of segmentations is being used by Zardo? a. Segmentation by end-use application b. Segmentation by customer type c. Segmentation by demographic characteristics d. Segmentation by purchase categories

b. Segmentation by customer type

Which of the following is the largest segment of the business market? a. Trade industries, which include retailers, wholesalers, and resellers b. The commercial market, which includes anyone who acquires products to support production of other goods and services c. Government organizations, including the military, state, and federal governments d. Institutions such as hospitals and churches

b. The commercial market, which includes anyone who acquires products to support production of other goods and services

A manufacturer who produces glass for microwave oven doors, shower enclosures, and patio tabletops is likely to segment his business customers on the basis of: a. geographic locations. b. end-use application. c. demographic characteristics. d. psychographic characteristics.

b. end-use application.

Trade industries are a component of business markets that include: a. manufacturers. b. resellers. c. end users. d. services providers.

b. resellers.

The government category of the B2B market primarily buys products: a. to sell it to the final consumers. b. to provide some form of public benefit. c. to export them to other countries. d. to improve its resale value.

b. to provide some form of public benefit.

divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product

behavioral segmentation

requires finding the major advantages people look for in a product class, the kinds of people who look for each positive aspect of a product, and the major brands that deliver it.

benefit segmentation

Which of the following statements is true regarding the nature of the business market? a. Distribution channels for business products are significantly longer than those for consumer products. b. As compared to business markets, customer relationships in consumer markets tend to last for longer duration. c. Personal selling plays a bigger role in business markets than in consumer markets. d. As compared to consumer markets, purchase decisions in business markets are relatively simple because of relatively less number of decision makers.

c. Personal selling plays a bigger role in business markets than in consumer markets.

Institutions are a major component of the business market that: a. tend to have greater financial resources than industrial customers. b. consist of wholesalers and retailers, who sell the products they buy to final consumers. c. include wide variety of organizations that often have diverse buying practices. d. acquire products mainly to indirectly support the production of other goods and services.

c. include wide variety of organizations that often have diverse buying practices.

Which of the following is most likely to help marketers to segment organizational buyers by purchase categories? a. Business process reengineering b. Value engineering c. Management by objectives d. Customer relationship management

d. Customer relationship management

The system for grouping businesses that grew out of the NAFTA accord is known as the: a. Standard Industrial Classification System. b. Industrial Data Records System. c. International Organization for Standardization of Business. d. North American Industry Classification System.

d. North American Industry Classification System.

Which of the following is one of the industry categories created by the Standard Industrial Classification system? a. Health care and social assistance b. Professional, scientific, and technical services c. Information services d. Public administration

d. Public administration

Business markets differ from consumer markets in that, in business markets: a. the products sold are mostly standardized and fit broader market segments compared to consumer products. b. the distribution channels are longer as the product passes through a number of intermediate links. c. the buying process is less complex and involves fewer decision makers. d. advertising plays a much smaller role when compared to the consumer market.

d. advertising plays a much smaller role when compared to the consumer market.

When firms in business markets are grouped based on their sales revenues, they are said to be segmented by: a. customer type. b. purchase category. c. end-use application. d. demographic characteristics.

d. demographic characteristics.

The organizational buying process has more steps than the consumer buying process, which can be attributed to: a. shorter durations of customer relationships formed in business markets. b. less standardized products sold in consumer markets. c. lack of interpersonal and environmental influences on consumer buying decisions. d. relatively complex buying process with greater number of decision makers in business markets.

d. relatively complex buying process with greater number of decision makers in business markets.

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each

differentiated marketing

involves actually distinguishing the firm's market offering to create superior customer value

differentiation

refers to differentiating the market offering to create superior customer value.

differentiation

calls for dividing the market into regions, states, counties, cities, or even neighborhoods.

geographic segmentation

tailors brands and promotions to the needs and wants of regional customer groups, such as cities, neighborhoods, and even specific stores

local marketing

involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes

market segmentation

consists of evaluating each market segment's attractiveness and selecting one or more segments to enter.

market targeting

divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product

occasion segmentation

divides buyers into different segments based on social class, lifestyle, or personality characteristics.

psychographic segmentation

The full mix of benefits on which a brand is differentiated and positioned

value proposition