Question 1

Which of the following statements demonstrate the formation of a segment based on household size?

Accepted Answer

A) Campbell's makes a spicier nacho cheese sauce for its distributors in Texas than it does in Maine. 
B) GE built a smaller microwave oven to hang under kitchen cabinets. 
C) Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners. 
D) A fast-food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays. 
E) A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area. 
A) Campbell's makes a spicier nacho cheese sauce for its distributors in Texas than it does in Maine. 
B) GE built a smaller microwave oven to hang under kitchen cabinets. 
C) Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners. 
D) A fast-food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays. 
E) A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area.

Question 2

Which of the following is not a criterion that would support forming market segments?

Accepted Answer

A) The ability to assign buyers to a segment is cost-effective and simple. 
B) The result of segmenting will cause an increase in market share or profit. 
C) There are significant similarities among buyers in the market segment. 
D) There is a potential marketing action to reach the segment. 
E) The cost to reach the segment exceeds the expected returns. 
A) The ability to assign buyers to a segment is cost-effective and simple. 
B) The result of segmenting will cause an increase in market share or profit. 
C) There are significant similarities among buyers in the market segment. 
D) There is a potential marketing action to reach the segment. 
E) The cost to reach the segment exceeds the expected returns.

Question 3

Market segmentation stresses ________ and relating them to specific marketing actions.

Accepted Answer

A) aligning tasks to match competitor tactics 
B) grouping people according to similar needs 
C) dividing people within a market randomly into equally sized groups 
D) dividing people into the smallest groups possible 
E) identifying potential new buyers who are not yet familiar with a new product 
A) aligning tasks to match competitor tactics 
B) grouping people according to similar needs 
C) dividing people within a market randomly into equally sized groups 
D) dividing people into the smallest groups possible 
E) identifying potential new buyers who are not yet familiar with a new product

Question 4

A means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands,as well as its own product or brand,is referred to as a

Accepted Answer

A) perception matrix. 
B) growth-share matrix. 
C) market-product grid. 
D) perceptual map. 
E) product differentiation chart. 
A) perception matrix. 
B) growth-share matrix. 
C) market-product grid. 
D) perceptual map. 
E) product differentiation chart.

Question 5

Evergreen Air Center in Marana,Arizona,is the world's biggest parking lot for unwanted commercial aircraft.Airlines pay from $750 to $5,000 a month for its storage service.The warm,dry air where the operation is located serves as a cheap and effective airplane preservative.Which segmentation variable might Evergreen use to segment the market?

Accepted Answer

A) NAICS sector,such as manufacturers,or retailers,or lawyers 
B) number of locations 
C) who buys,such as individual buyer or buying groups 
D) metropolitan statistical area 
E) number of employees 
A) NAICS sector,such as manufacturers,or retailers,or lawyers 
B) number of locations 
C) who buys,such as individual buyer or buying groups 
D) metropolitan statistical area 
E) number of employees

Question 6

One advantage of a market-product grid is that it can be used to

Accepted Answer

A) make cost-cutting decisions under conditions of uncertainty. 
B) screen many new-product ideas in order to select the one with the best long-run market potential. 
C) determine which target market segments to select and which product groupings to offer. 
D) select representative samples of consumers for marketing research studies. 
E) relate the product life cycle to consumer demand. 
A) make cost-cutting decisions under conditions of uncertainty. 
B) screen many new-product ideas in order to select the one with the best long-run market potential. 
C) determine which target market segments to select and which product groupings to offer. 
D) select representative samples of consumers for marketing research studies. 
E) relate the product life cycle to consumer demand.

Question 7

In the athletic shoe market,Adidas AG and Nike Inc.practice ________ positioning since both companies vie for the same customers with technologically advanced products.

Accepted Answer

A) psychological 
B) perceptual 
C) differentiation 
D) head-to-head 
E) market 
A) psychological 
B) perceptual 
C) differentiation 
D) head-to-head 
E) market

Question 8

The O³ technology refers to an innovative tennis racquet Prince Sports developed that simultaneously delivers faster racquet speed and a bigger sweet spot in the middle of the frame.Prince Sports has implemented a ________ strategy with its O³ innovative tennis racquet technology.

Accepted Answer

A) competitive segmentation 
B) head-to-head 
C) product differentiation 
D) usage segmentation 
E) market segmentation 
A) competitive segmentation 
B) head-to-head 
C) product differentiation 
D) usage segmentation 
E) market segmentation

Question 9

Apple Market-Product Grid
  
-In its early years,Apple was often called "Camp Runamok" because

Accepted Answer

A) every employee was encouraged to do his or her own thing. 
B) it was concentrating on laptops while everyone else was concentrating on personal computers. 
C) all the employees were so young,so they often played more than they worked. 
D) there were no coherent product lines targeted at identifiable market segments. 
E) its personal computers were running amok with viruses,spyware,and other problems. 
A) every employee was encouraged to do his or her own thing. 
B) it was concentrating on laptops while everyone else was concentrating on personal computers. 
C) all the employees were so young,so they often played more than they worked. 
D) there were no coherent product lines targeted at identifiable market segments. 
E) its personal computers were running amok with viruses,spyware,and other problems.

Question 10

When expenses are greater than the potential increased sales from market segmentation,a firm should

Accepted Answer

A) not consider market segmentation at this time. 
B) combine departments within the company to make the process more streamlined. 
C) reduce production costs or increase prices to facilitate the segmentation process. 
D) seek alternate channels of distribution,including Internet sales. 
E) discontinue manufacturing any products that are not in the mature stage of their product life cycle. 
A) not consider market segmentation at this time. 
B) combine departments within the company to make the process more streamlined. 
C) reduce production costs or increase prices to facilitate the segmentation process. 
D) seek alternate channels of distribution,including Internet sales. 
E) discontinue manufacturing any products that are not in the mature stage of their product life cycle.

Question 11

You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50.Or you can buy a Hallmark card from its new $0.99 line of greeting cards,made with lesser-quality materials but just as sentimental,sold at Barnes & Noble bookstores.This is an example of

Accepted Answer

A) mass customization. 
B) organizational synergy. 
C) one product and multiple market segments. 
D) price discrimination. 
E) a Tiffany/Walmart strategy. 
A) mass customization. 
B) organizational synergy. 
C) one product and multiple market segments. 
D) price discrimination. 
E) a Tiffany/Walmart strategy.

Question 12

Airlines have developed frequent-flyer programs to encourage passengers to use the same airline repeatedly.This marketing strategy is based on

Accepted Answer

A) geographic segmentation. 
B) behavioral segmentation. 
C) psychographic segmentation. 
D) demographic segmentation. 
E) buying condition segmentation. 
A) geographic segmentation. 
B) behavioral segmentation. 
C) psychographic segmentation. 
D) demographic segmentation. 
E) buying condition segmentation.

Question 13

What are the criteria used to select target markets?

Accepted Answer

There are two different kinds of criteri

Question 14

Why would an organization produce a single product or service and then attempt to sell it to two or more market segments?

Accepted Answer

An organization would produce a single p

Question 15

A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products is referred to as

Accepted Answer

A) market penetration. 
B) points of difference. 
C) market differentiation. 
D) product positioning. 
E) product differentiation. 
A) market penetration. 
B) points of difference. 
C) market differentiation. 
D) product positioning. 
E) product differentiation.

Question 16

All of the following are psychographic segmentation variables except which?

Accepted Answer

A) lifestyle 
B) needs 
C) birth era 
D) PRIZM 
E) personality 
A) lifestyle 
B) needs 
C) birth era 
D) PRIZM 
E) personality

Question 17

Product differentiation refers to

Accepted Answer

A) a good,service,or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs. 
B) the unique combination of product benefits received by targeted buyers. 
C) those characteristics of a product that make it superior to competitive substitutes. 
D) a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products. 
E) the legal requirement that requires a specified degree of distinction between products to ensure an organization's intellectual property rights. 
A) a good,service,or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs. 
B) the unique combination of product benefits received by targeted buyers. 
C) those characteristics of a product that make it superior to competitive substitutes. 
D) a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products. 
E) the legal requirement that requires a specified degree of distinction between products to ensure an organization's intellectual property rights.

Question 18

The increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently is referred to as

Accepted Answer

A) aggregation. 
B) organizational synergy. 
C) segmentation. 
D) amalgamation. 
E) valuation. 
A) aggregation. 
B) organizational synergy. 
C) segmentation. 
D) amalgamation. 
E) valuation.

Question 19

A relatively homogenous group of prospective buyers that results from the market segmentation process is referred to as a(n)

Accepted Answer

A) market segment. 
B) target market. 
C) customer base. 
D) ultimate consumer. 
E) preferred customer. 
A) market segment. 
B) target market. 
C) customer base. 
D) ultimate consumer. 
E) preferred customer.

Question 20

The 80/20 rule suggests that

Accepted Answer

A) 80 percent of a firm's inventory should be readily available while 20 percent should be reserved for emergency demand. 
B) 80 percent of a firm's first-time users will become brand loyal while 20 percent will use the product only once and then abandon it. 
C) 80 percent of a firm's sales are obtained from 20 percent of its customers. 
D) 80 percent of a firm's marketing program expenses are tax deductible while 20 percent are not. 
E) 80 percent of a firm's products will be sold to ultimate consumers while 20 percent to organizational buyers. 
A) 80 percent of a firm's inventory should be readily available while 20 percent should be reserved for emergency demand. 
B) 80 percent of a firm's first-time users will become brand loyal while 20 percent will use the product only once and then abandon it. 
C) 80 percent of a firm's sales are obtained from 20 percent of its customers. 
D) 80 percent of a firm's marketing program expenses are tax deductible while 20 percent are not. 
E) 80 percent of a firm's products will be sold to ultimate consumers while 20 percent to organizational buyers.

Exam 9: Market Segmentation, targeting, and Positioning

Which of the following statements demonstrate the formation of a segment based on household size?

Which of the following is not a criterion that would support forming market segments?

Market segmentation stresses ________ and relating them to specific marketing actions.

A means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands,as well as its own product or brand,is referred to as a

One advantage of a market-product grid is that it can be used to

In the athletic shoe market,Adidas AG and Nike Inc.practice ________ positioning since both companies vie for the same customers with technologically advanced products.

The O³ technology refers to an innovative tennis racquet Prince Sports developed that simultaneously delivers faster racquet speed and a bigger sweet spot in the middle of the frame.Prince Sports has implemented a ________ strategy with its O³ innovative tennis racquet technology.

Apple Market-Product Grid -In its early years,Apple was often called "Camp Runamok" because

When expenses are greater than the potential increased sales from market segmentation,a firm should

You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50.Or you can buy a Hallmark card from its new $0.99 line of greeting cards,made with lesser-quality materials but just as sentimental,sold at Barnes & Noble bookstores.This is an example of

Airlines have developed frequent-flyer programs to encourage passengers to use the same airline repeatedly.This marketing strategy is based on

What are the criteria used to select target markets?

Why would an organization produce a single product or service and then attempt to sell it to two or more market segments?

A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products is referred to as

All of the following are psychographic segmentation variables except which?

Product differentiation refers to

The increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently is referred to as

A relatively homogenous group of prospective buyers that results from the market segmentation process is referred to as a(n)

The 80/20 rule suggests that

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Developing New Products and Services

Managing Successful Products, services, and Brands

Services Marketing

Building the Price Foundation

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising,sales Promotion,and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Pulling It All Together: the Strategic Marketing Process

Writing Successful Marketing and Business Plans: Tips and Guidelines

Financial Statements and Ratios

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