MKTG Chapter 6
9) Marketers must be most careful to guard against which of the following when using age and life cycle segmentation? A) underestimating B) stereotyping C) traditional marketing D) cultural bias E) gender bias
B
92) The Jay Group hires better employees than the competition by conducting lengthy searches and interviews. Management also trains employees much better than competitors do. The Jay Group has gained a strong competitive advantage through which type of differentiation? A) image B) people C) services D) product E) channel
B
116) Developing a stronger position within several segments creates more total sales than undifferentiated marketing across all segments.
A
117) 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.
A
119) Though the use of mass marketing has been widespread in the past 100 years, for centuries consumers were served as individuals as businesses practiced individual marketing.
A
102) Your company wants to move away from mass marketing and engage in customer-driven marketing. The four steps to take, in order, are market segmentation, marketing positioning, differentiation, and targeting.
B
104) Demographic segmentation uses different marketing approaches for different time periods of people's lives and different family situations.
B
108) LaGrange Florists segments markets into groups of nonusers, ex-users, potential users, first-time users, and regular users of its flowers and services. This firm uses usage rate as its segmentation approach.
B
109) Research about and planning for loyalty status as a segmentation approach is generally not useful or practical for most firms.
B
120) Mass marketing is becoming a marketing principle for the 21st century.
B
33) When New Port Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing. A) undifferentiated B) differentiated C) target D) individual E) niche
B
39) Niche marketing offers smaller companies the opportunity to compete by focusing their limited resources on serving niches that may be ________ or ________ larger companies. A) unimportant to; unwanted by B) unimportant to; overlooked by C) too small; undesirable to D) unknown by; unwanted by E) disappointed by; geographically far from
B
4) Even though several options are available at any one time, there ________ to segment a market. A) is one single best way B) is no single way C) is a most effective way D) are limited ways E) are four ways
B
44) Which of the following is the narrowest marketing strategy? A) segmented strategy B) local marketing C) differentiated marketing D) mass marketing E) undifferentiated marketing
B
51) When competitors use differentiated or concentrated marketing, ________ marketing can be disastrous. A) differentiated B) undifferentiated C) concentrated D) customized E) localized
B
53) It is considered socially irresponsible when the marketing of adult products spills over into the ________ segment. A) elderly B) child C) animal D) minority E) senior
B
73) Which difficult-to-sustain positioning strategy attempts to deliver the "best-of-both"? A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) more-for-more
B
78) When Burger King targets children, teens, adults, and seniors with different ads and media, it is practicing ________ segmentation. A) demographic B) age and life cycle C) psychographic D) behavioral E) generational
B
85) The markets you have chosen to serve in four western states can be effectively reached and served. You would tell the marketing manager that these segments are ________. A) measurable B) accessible C) substantial D) actionable E) profitable
B
86) Jolene Enterprises mass produces an all-purpose floor cleaner, mass distributes it and mass promotes it. This firm uses ________ marketing. A) segmented B) undifferentiated C) traditional D) differentiated E) none of the above
B
87) A marketer focuses on several commonalities among all consumers. This marketer appears to be engaging in ________. A) differentiated marketing B) undifferentiated marketing C) segmented marketing D) concentrated marketing E) mass customization
B
93) Ford Motor Company emphasizes "Quality FirstFord Tough" in its truck products. In doing so, the company has developed a differentiation strategy based on ________. A) people B) image C) products D) services E) positioning
B
101) Today, most companies have moved back toward mass marketing and are being choosier about the customers with whom they wish to build relationships.
A
103) Bombay Gifts divides its markets into units of nations, regions, and cities. Bombay uses geographic segmentation.
A
105) Shopping for the Rich and Famous is a buying service that helps wealthy clients find the best buys in exclusive clothing, high-end cars, travel, and financial services. This firm most likely uses income segmentation.
A
106) Gender segmentation has long been used in clothing, cosmetics, toiletries, and magazines.
A
121) When a company chooses a target marketing strategy, its choices are influenced by factors related to company resources, the degree of product variability, and the product's life-cycle stage.
A
123) Consumers position products in their minds in order to simplify the buying process.
A
1) When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________. A) concentrated marketing B) mass marketing C) market targeting D) segmenting E) differentiation
C
79) Which of the following statements illustrates why stereotypes should be avoided when using age and life cycle segmentation? A) Old women love to shop; young women love it more! B) Most 10-year-old boys are mischievous. C) Some 70 year olds use wheelchairs; others play tennis. D) The majority of 20 year olds have to work; the same holds true for 30 and 40 year olds. E) both C and D
C
83) Shampoo marketers rate buyers as light, medium, or heavy product users. This is ________ segmentation. A) benefit B) user status C) usage rate D) psychographic E) occasions
C
100) If Herb produced a variety of styles of pens and pencils with various wood types and engravings that he tailored specifically to each individual's order, he would be practicing ________. A) concentrated marketing B) local marketing C) undifferentiated marketing D) mass customization E) micromarketing
D
25) 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
D
52) Target marketing sometimes generates controversy and concern. Issues usually involve the targeting of ________ consumers with ________ products. A) elderly; expensive B) young; appealing C) vulnerable; marketing D) vulnerable or disadvantaged; controversial or potentially harmful E) unexpected; deceptive
D
57) Which group determines a product's position relative to competing products? A) manufacturers B) wholesalers C) retailers D) consumers E) suppliers
D
58) A product's position is based on important attributes as perceived by ________. A) suppliers B) competitors C) market conditions D) consumers E) managers
D
56) In target marketing, the issue is not really who is targeted, but rather ________ and for ________. A) why; what B) how; what C) why; how long D) where; how long E) how; where
B
97) Superior Auto Sales, a chain of high-end used car dealerships, wants to sum up its company positioning and brand positioning in a formal way. Superior's management would use a ________. A) mission statement B) vision statement C) competitive statement D) positioning statement E) company statement
D
12) The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation. A) behavioral B) psychographic C) age and life cycle D) demographic E) geographic
A
71) "Less-for-much-less" positioning involves meeting consumers' ________. A) quality performance requirements at a lower price B) lower quality requirements in exchange for a lower price C) lower quality requirements at the lowest possible price D) high quality requirements at a discounted rate E) high quality requirements at the lower possible price
B
13) Many marketers believe that which of the following variables are the best starting point for building marketing segments? A) behavioral B) family size C) gender D) age E) beneficial
A
75) What is the following an example of? "To busy, mobile professionals who need to always be in the loop, BlackBerry is a wireless connectivity solution that gives you an easier, more reliable way to stay connected to data, people, and resources while on the go." A) positioning statement B) service differentiation C) concentrated segmentation D) competitive advantage E) responsible target marketing
A
80) Segmenting voters as either democrats or republicans is an example of ________. A) psychographic segmentation B) demographic segmentation C) occasion segmentation D) intermarket segmentation E) A and D
A
60) Which of the listed choices is NOT a positioning task? A) identifying a set of possible competitive advantages upon which to build a position B) surveying frequent users of the product C) selecting an overall positioning strategy D) effectively communicating and delivering the chosen position to the market E) selecting the right competitive advantages
B
63) Which type 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
B
Refer to the scenario below to answer the following questions. 98) In the scenario, how does Herb segment his market? A) loyalty status B) usage rate C) income D) geographically E) demographically
B
49) The move toward individual marketing mirrors the trend in consumer ________. A) self-imaging B) customizing C) self-marketing D) tastes E) self-conceptualization
C
59) Consumers position products and services ________. A) after marketers put marketing mixes in place B) generally after consulting friends who use them C) with or without the help of marketers D) only reluctantly E) based on nearby competitors' positions
C
8) Demographic variables are so frequently used in market segmentation because they ________. A) create smaller segments than other methods do B) create more easily reached segments than other methods do C) do not involve stereotypes D) are easy to measure in comparison to many other methods E) involve fewer attributes to consider than other methods do
D
84) MTV targets the world's teenagers, who have similar needs and buying behavior even though they are located in different countries. This is called ________ segmentation. A) political and legal B) cross-cultural C) cultural D) intermarket E) individual
D
19) Consumer and business marketers use many of the same variables to segment markets. Business marketers use all of the following EXCEPT ________. A) operating characteristics B) purchasing approaches C) situational factors D) personal characteristics E) brand personalities
E
81) At one time Miller Beer was known as the "champagne of bottled beer." Unfortunately, Miller drinkers did not drink much beer. To increase sales, Miller was repositioned to attract the members of the middle working class. This segmentation approach is ________. A) user status B) usage rate C) benefit D) behavioral E) psychographic
E
107) Your assignment at work is to divide buyers into different groups based on social class, lifestyle, and personality characteristics. After a planning session with the marketing and sales staff, you issue a memo to upper management recommending psychographic segmentation. You are right on target.
A
111) Clusters of marketable groups of customers with similar likes, dislikes, lifestyles, and purchase behaviors can be identified by multivariable segmentation systems that merge and analyze geographic, demographic, lifestyle, and behavioral data.
A
112) There are many exceptions to the geographic segmentation assumption that consumers in nations close to one another will have many common behaviors and traits.
A
114) In evaluating different market segments, a firm should look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources.
A
115) At a recent marketing seminar, the featured speaker stated that a target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. This is a correct definition.
A
15) 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 B) usage rates C) benefit D) behavior E) loyalty status
A
17) By studying its less loyal buyers, a company can detect which brands are most ________ its own. A) competitive with B) used with C) overlooked with D) similar to E) complementary to
A
22) Lexus targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________. A) intermarket segmentation B) loyalty segmentation C) life-cycle segmentation D) targeting segmentation E) psychographic segmentation
A
23) When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________. A) measurable B) accessible C) substantial D) actionable E) observable
A
31) Mass marketers, such as Target and Venture Stores, often ignore market segment differences and target the whole market with one offer. What is their approach to segmenting? A) undifferentiated marketing B) differentiated marketing C) target marketing D) concentrated marketing E) micromarketing
A
34) Developing a strong position within several segments creates more total sales than ________ marketing across all segments. A) undifferentiated B) differentiated C) niche D) target E) individual
A
41) Which of the segmenting strategies carries higher-than-average risks in consumer markets? A) concentrated B) mass C) differentiated D) undifferentiated E) multiple-segment
A
5) Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be ________ segmentation. A) geographic B) benefit C) end-use D) customer E) image
A
55) Most attempts to target children and minority groups provide ________ to target customers. A) benefits B) education C) disadvantages D) harm E) expenses
A
61) A company or store gains a(n) ________ by differentiating its products and delivering more value. A) competitive advantage B) positioning advantage C) cost advantage D) efficiency advantage E) synergy
A
64) When firms use symbols, colors, or characters to convey their personalities, they are using ________ differentiation. A) image B) people C) company D) reputation E) subliminal
A
67) You have just created the "perfect" ad. It communicates the full mix of benefits upon which the brand is differentiated and positioned. This full positioning of the brand is called ________. A) its value proposition B) target marketing C) capturing the consumers' attention D) value profiling E) differentiated marketing
A
69) What competitive positioning can attack a more-for-more strategy by introducing a brand offering with 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) all-or-nothing
A
7) Through talking to numerous competitors at a regional trade show, you learn that most of them use the most popular base for segmenting markets. What is it? A) demographic B) gender C) psychographic D) behavioral E) geographic
A
82) Your current assignment at York Foods is to find the major benefits people look for in product classes, the kinds of people who look for each benefit, and the major brands that deliver each benefit. What is this segmentation method called? A) benefit B) behavioral C) age and life cycle D) psychographic E) demographic
A
32) The 55-year-old baby boomers share common needs in music and performers. When a music company decides to serve this group, the group is called a(n) ________. A) market segment B) target market C) well-defined market D) differentiated market E) undifferentiated market
B
10) When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely using which type of segmentation? A) age and life cycle B) gender C) behavior D) psychographic E) geographic
B
11) Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation? A) gender B) income C) occasion D) usage rate E) benefits sought
B
110) For simplicity's sake, most marketers generally limit their segmentation analysis to one or a few variables.
B
113) Because there is such variation among the economies of countries around the world, it is not practical to segment international markets on the basis of economic factors.
B
118) Because Cruise Ships International currently has limited financial and personnel resources, it should avoid concentrated or niche marketing until resources are again substantial.
B
122) A product's position is the way the product is defined by the retailers who sell it to target markets. It is how it is defined on important attributesthe place the product occupies in the retailers' minds relative to competing products.
B
124) A market rarely exists for products that offer less and therefore cost less.
B
125) When Kia offers a new car model with the same features as a comparable Toyota or Ford and provides a longer warranty, Kia is following a more-for-less strategy.
B
16) Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by ________. A) user status B) loyalty status C) store type D) brand preference E) usage rate
B
30) In general, a company should enter only segments in which it can ________ and ________. A) offer lower prices; ship faster B) offer superior value; gain advantages over competitors C) offer superior value; ship faster D) gain advantages over competitors; differentiate its products E) identify behaviors; understanding spending power
B
95) Neiman Marcus claims superior quality, performance, and style. The owners provide the most upscale products and services and charge a higher price to cover the higher costs. What type of positioning does Neiman Marcus use? A) more-for-the-same B) more-for-more C) repositioning D) the-same-for-less E) more-for-less
B
96) When it first opened for business, Home Depot claimed to offer better products at lower prices. This hard-to-sustain value proposition is called ________. A) more-for-the-same B) more-for-less C) more-for-more D) same-for-less E) same-for-more
B
14) Which type of segmentation centers on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item? A) behavioral B) psychographic C) occasion D) impulse E) emergency
C
18) Many firms make an effort to identify smaller, better-defined target groups by using ________. A) user rates B) loyalty segmentation C) multiple segmentation bases D) positioning E) mass marketing
C
2) What are the four steps, in order, to designing a customer-driven marketing strategy? A) market segmentation, differentiation, positioning, and targeting B) positioning, market segmentation, mass marketing, and targeting C) market segmentation, targeting, differentiation, and positioning D) market alignment, market segmentation, differentiation, and market positioning E) market recognition, market preference, market targeting, and market insistence
C
20) As in consumer segmentation, many marketers believe that ________ and ________ segmentation provide the best basis for segmenting business markets. A) geographic; demographic B) user status; user loyalty C) benefits; buying behavior D) age and life-cycle; psychographic E) income; usage rate
C
24) When a business market segment is large or profitable enough to serve, it is termed ________. A) measurable B) accessible C) substantial D) actionable E) differentiable
C
29) Which of the following is NOT one of the reasons a segment would be less attractive to a company? A) strong competitors B) substitute products C) concentrated market D) power of buyers E) power of suppliers
C
35) ByWay Ventures chose a differentiated marketing strategy. The company had to weigh ________ against ________ when selecting this strategy. A) extra research; costs B) sales analysis; sales C) increased sales; increased costs D) geographic segmentation; demographic segmentation E) attitudes; perceptions
C
36) Procter & Gamble sells six brands of laundry detergent in the United States, each designed for one of six laundry segments Procter & Gamble has identified. Together, these six brands take 62% of market share. Which of the following is a disadvantage of Procter & Gamble's differentiated marketing strategy? A) lost sales that would have been made with an undifferentiated marketing strategy across all segments B) lost customer loyalty due to lack of brand loyalty C) increased costs for separate marketing plans for each brand D) other suppliers controlling pricing E) lack of resources to succeed in an attractive segment
C
38) Using concentrated marketing, the marketer goes after a ________ share of ________. A) small; a small market B) small; a large market C) large; one or a few niches D) large; the mass market E) moderate; local
C
40) Today, the low cost of setting up shop ________ makes it even more profitable to serve very small niches. A) in malls in major cities B) in mail-order catalogs C) on the Internet D) near major competitors E) far from competitors
C
46) Under what circumstances can local marketing be quite effective? A) when pronounced regional differences in demographics are present B) when pronounced local differences in lifestyles are present C) when pronounced regional and local differences in demographics and lifestyles are present D) when regional and local differences in demographics and lifestyles are similar E) all of the above
C
47) When Wal-Mart customizes its merchandise store by store to meet shopper needs, it is practicing ________. A) niche marketing B) psychographic marketing C) local marketing D) social segmentation E) individual marketing
C
48) 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 following ________. A) one-to-one marketing B) mass marketing C) mass customization D) differentiated marketing E) localization
C
54) Cigarette, beer, and fast-food marketers have generated much controversy in recent years by their attempts to target ________. A) teens B) the poor C) inner-city minorities D) the poor in foreign markets E) suburban adults
C
62) A company or market offer can be differentiated along the lines of product, image, services, channels, or ________. A) prices B) nonprice factors C) people D) customer service E) location
C
66) A brand difference is worth establishing and promoting to the extent that it satisfies all of the criteria below EXCEPT which one? A) important B) distinctive C) divisible D) affordable E) noticeable
C
68) The answer to the customer's question "Why should I buy your brand?" is found in the ________. A) quality image B) customer services C) value proposition D) differentiation E) pricing and promotion structure
C
70) Which positioning strategy offers consumers a "good deal" by offering equivalent-quality products or services at a lower price? A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) all-or-nothing
C
77) When Pacific Fisheries groups its customers as countries by regions such as Asia, Australia, or New Zealand, it is using which segmenting base? A) economic factors B) political and legal factors C) geographic location D) benefits sought E) demographics
C
88) Which of the following is the most logical reason for Procter & Gamble offering products that compete with one another on the same supermarket shelves? A) Different people want a greater selection. B) Procter & Gamble has little competition. C) Different people want different mixes of benefits from the products they buy. D) Retailers request it. E) It creates healthy competition.
C
99) In marketing his writing utensils to his four specialty-shop customers, Herb is using ________ marketing. A) mass B) undifferentiated C) niche D) mass customization E) individual
C
21) International Drilling Company segments its foreign markets by their overall level of economic development. This firm segments on what basis? A) political factors B) legal factors C) geographic factors D) economic factors E) cultural factors
D
26) You have discovered that the segments you are targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. These segments are ________. A) accessible B) measurable C) reachable D) differentiable E) observable
D
27) To evaluate the different market segments your company serves, you would look at all of these factors EXCEPT which one? A) segment size B) segment growth C) segment structural attractiveness D) company values E) company resources
D
28) Barney Hopkins has compiled a list of things that make segments more attractive. Which one of the following items should NOT be on the list? A) relative power of buyers B) lack of powerful suppliers to control prices C) few substitute products D) competition with superior resources E) financial resources
D
37) Successful niche marketing relies on a firm's ________ and its ________. A) marketing strategy; services B) individual relationships with customers; positioning C) superior products; value network partners D) greater knowledge of customers' needs; special reputation E) competitive advantage in comparison to mass-market companies; affordable pricing
D
43) ________ tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores. A) Undifferentiated B) Differentiated marketing C) Niche marketing D) Local marketing E) Individual marketing
D
50) When choosing a target marketing strategy, many factors need to be considered. Which of the following does your text NOT mention as important? A) company resources B) degree of product variability C) product life-cycle stage D) product cost E) competitors' marketing strategies
D
6) Pendergraff Pet Supplies divides the pet market according to the owners' race, occupation, income, and family life cycle. What type of segmentation does Pendergraff use? A) geographic B) behavioral C) lifestyle D) demographic E) psychographic
D
65) Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick to it. What does USP stand for? A) unique selling product B) unique services practice C) unique sales pitch D) unique selling proposition E) unique strategic practice
D
72) Few people can afford the best in everything they buy. At times everyone needs a product with less quality or performance with a correspondingly lower price. In this case a consumer would purchase a product positioned with a ________ strategy. A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) all-or-nothing
D
74) Which type of statement first states the product's membership in a category and then shows its point-of-difference from other members of the category? A) mission statement B) vision statement C) differentiation statement D) positioning statement E) statement of intent
D
76) When marketers at Procter & Gamble selected the Millennials, a demographic that includes college students, as an untapped group of potential customers for their Febreze line of products, they were executing which step in the process of designing a customer-driven marketing strategy? A) market segmenting B) mass marketing C) differentiation D) targeting E) positioning
D
89) Sanguine Services practices a marketing strategy where its limited resources are used to go after a large share of two small niches. Sanguine practices which one of these strategies? A) undifferentiated B) differentiated C) mass D) concentrated E) geographically dispersed
D
91) Jay Bee Promotions tailors its advertising and promotional services to the needs and preferences of individual customers. Which of the following terms does NOT apply to this type of marketing? A) one-to-one B) customized C) markets-of-one D) concentrated E) mass customization
D
94) Cheap Heaps Auto specializes in lower quality vehicles, with a few dents, priced a great deal lower than other used cars. Cheap Heaps has chosen to position their products with a ________ strategy. A) more-for-the same B) more-for-less C) same-for-less D) less-for-much-less E) A or C
D
3) Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more ________ with products and services that match their unique needs. A) efficiently B) effectively C) intensely D) indirectly E) both A and B
E
42) As You Like It, Inc., customizes its offers to each individual consumer. This practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________ marketing. A) niche B) mass C) differentiated D) undifferentiated E) micro
E
45) Which of the following is NOT a drawback of local marketing? A) It can drive up manufacturing costs. B) It can drive up marketing costs by reducing economies of scale. C) It can create logistics problems. D) A brand's overall image might be diluted through too much variation. E) Supporting technologies are expensive.
E
90) Bob and Phyllis Cords own two retail stores, one in Pottstown and one in Norristown. Though the towns are only 40 miles apart, the consumers at both stores are very different demographically. Bob and Phyllis alter the product offerings between both locations in an effort to cater to both demographic groups. This is an example of ________. A) local marketing B) psychographic segmentation C) micromarketing D) demographic segmentation E) A and C
E
