Question 1

________ is the process by which firms interact one-to-one with masses of customers to design products and services tailor-made to individual needs.

Accepted Answer

A)  Product diversification 
B)  Micromarketing 
C)  Mass customization 
D)  Differentiated marketing 
E)  Local marketing

Question 2

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 ________.

Accepted Answer

A)  cause marketing 
B)  stereotyping 
C)  niche marketing 
D)  scapegoating 
E)  positioning

Question 3

List some important factors that companies need to consider when choosing a market-targeting strategy.

Accepted Answer

The answer of List some important factors that companies need...

Question 4

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?

Accepted Answer

A)  mass marketing 
B)  differentiated marketing 
C)  individual marketing 
D)  local marketing 
E)  direct marketing

Question 5

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

Accepted Answer

A)  Benefit 
B)  Occasion 
C)  Geographic 
D)  Demographic 
E)  Psychographic

Question 6

Which of the following is true with regard to the same for less value proposition?

Accepted Answer

A)  Discount stores and "category killers" rarely use the same for less value proposition. 
B)  The same for less value proposition is mostly offered by marketers who sell higher quality upscale products or services. 
C)  The same for less value proposition cannot generate profits. 
D)  Offering the same for less can be a powerful value proposition because everyone likes a good deal. 
E)  The same for less positioning involves meeting consumers' lower performance or quality requirements at a much lower price.

Question 7

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.

Accepted Answer

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

Question 8

Marketers often segment international markets according to the type and stability of government. In such instances, they segment markets based on ________.

Accepted Answer

A)  geographic location 
B)  economic factors 
C)  cultural factors 
D)  political factors 
E)  socio-cultural factors

Question 9

Why are demographic factors the most popular bases for segmenting customer groups?

Accepted Answer

The answer of Why are demographic factors the most popular...

Question 10

Which of the following is NOT a common variable used by both consumer and business marketers while segmenting markets?

Accepted Answer

A)  operating characteristics 
B)  loyalty status 
C)  usage rate 
D)  geographic location 
E)  benefits sought

Question 11

A segment is less attractive if it ________.

Accepted Answer

A)  is difficult for new entrants to enter 
B)  is substantial 
C)  is actionable 
D)  already contains many strong and aggressive competitors 
E)  contains weak suppliers

Question 12

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 on select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach.

Accepted Answer

A)  gender 
B)  income 
C)  occasion 
D)  benefit 
E)  geographic

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

________ refers to how a company will create differentiated value for targeted segments and what positions it wants to occupy in those segments.

Accepted Answer

A)  Targeted marketing 
B)  Market segmentation 
C)  Product positioning 
D)  Value proposition 
E)  Niche marketing

Question 15

How does loyalty status enhance a company's understanding of its consumers?

Accepted Answer

The answer of How does loyalty status enhance a company's...

Question 16

What does a company focus on when using a concentrated marketing strategy?

Accepted Answer

The answer of What does a company focus on when...

Question 17

What is differentiation?

Accepted Answer

The answer of What is differentiation?...

Question 18

Which of the following is true about the concentrated marketing strategy?

Accepted Answer

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.

Question 19

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

Accepted Answer

A)  Benefit segmentation 
B)  Geographic segmentation 
C)  Demographic segmentation 
D)  Psychographic segmentation 
E)  Occasion segmentation

Question 20

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

Accepted Answer

A)  income 
B)  age-group 
C)  occasion 
D)  benefit 
E)  cross-market

Exam 7: Customer-Driven Marketing Strategy: Creating Value for Target Customers