Question 1

Mass-marketing efforts will continue to be used by marketers:

Accepted Answer

A)   because consumers have more time to make purchase decisions.
B)   to gather detailed information on customers,which is not possible in direct marketing.
C)   to remind consumers of a product.
D)   because they allow marketers to target customers with extremely relevant offerings. C

Question 2

A market segment is a subgroup of people or organizations having different characteristics that cause them to have distinct product needs.

Accepted Answer

A) True 
 B)False  False

Question 3

According to family life cycle segmentation,young married or divorced couples with children have high liquid assets.

Accepted Answer

A) True 
 B)False  False

Question 4

What is the similarity between a stock market and a labor market?

Accepted Answer

A)   Both use a barter system to facilitate the exchange of products.
B)   Both are composed of people who are unwilling to spend large sums of money for products or services.
C)   Both are composed of people with specific wants that can be satisfied by particular product categories.
D)   Both deal in selling high-end,consumer durable products.

Question 5

Julie works as a public relations executive in a firm and is definitive in her choice of office clothes and accessories.She prefers to wear only certain brands.Hence,she is always seen in clothes from Banana Republic and carries only Coach handbags to office.Which psychographic variable is Julie exhibiting?

Accepted Answer

A)   Motives
B)   Personality
C)   Geodemographics
D)   Attributes

Question 6

_____ involves dividing a market into groups such as newborns,infants,young children,tweens,Millennials,Generation X,Baby Boomers,and seniors.

Accepted Answer

A)   Ethnic segmentation
B)   Family life cycle segmentation
C)   Age segmentation
D)   Psychographic segmentation

Question 7

Which statement is true of gender segmentation in the United States?

Accepted Answer

A)   Women are increasingly part of formerly all-male markets.
B)   Women are not an experienced purchasing group,unlike men.
C)   Men make 70 to 80 percent of purchases of consumer goods each year.
D)   Men tend to be more deliberate than women and to take longer to make investment decisions.

Question 8

With regard to age segmentation,the tween and teenage cohort following the Millennials is sometimes called _____.

Accepted Answer

A)   Generation X
B)   the Baby Boomer generation
C)   Generation Z
D)   the Silent Generation

Question 9

Pine Groove,a cosmetic brand that primarily caters to women,wants to reach out to the less-traditional male market.It conducts research and develops a new product especially for men.In this example,Pine Groove uses _____.

Accepted Answer

A)   ethnicity segmentation
B)   age segmentation
C)   gender segmentation
D)   psychographic segmentation

Question 10

The combination of demographics,lifestyles,and geographic categories leads to ______________.

Accepted Answer

A)   geodemographic segmentation
B)   benefit segmentation
C)   usage-rate segmentation
D)   psychographic segmentation

Question 11

Zinta Co.has launched a new laptop computer with a bigger monitor and big lettered keyboard.The company uses this model to target senior communities and provides discounts.The company targets thirteen cities in the United States with high populations of seniors.This scenario exemplifies which type of market segmentation?

Accepted Answer

A)   Geodemographic segmentation
B)   Psychographic segmentation
C)   Benefit segmentation
D)   Usage-rate segmentation

Question 12

Cannibalization occurs when the sales of a firm's existing product increase with the introduction of a new product.

Accepted Answer

A) True 
 B)False

Question 13

There are many scientific procedures for selecting segmentation variables to use in identifying a market and there is no need for having market knowledge for segmenting the market.

Accepted Answer

A) True 
 B)False

Question 14

What is geographic segmentation? Briefly explain why consumer goods companies take a geographic approach to marketing.

Accepted Answer

The answer of What is geographic segmentation? Briefly explain why...

Question 15

Demographics provide the skeleton for developing segmentation strategies,but ___________adds meat to the bones.

Accepted Answer

A)   geographic segmentation
B)   benefit-usage segmentation
C)   psychographic segmentation
D)   benefit segmentation

Question 16

Once known as a rugs brand,in 2006 Burberry revamped its product line to reinvent itself as a luxury brand by harnessing the power of heritage.Which strategy did Burberry use to influence the overall perception of its brand in the eyes of its old and potential new customers?

Accepted Answer

A)   Positioning
B)   Repositioning
C)   Perceptual mapping
D)   Product differentiation

Question 17

Chipotle stated they were "in the market for Mexican food" by competing on quality instead of price.Chipotle is a company that prides itself on serving "food with integrity." Which mass market targeting strategy did it use when entering the market?

Accepted Answer

A)   Undifferentiated targeting
B)   Concentrated targeting
C)   Multisegment targeting
D)   Differentiated marketing

Question 18

One disadvantage of the personal and targeted nature of customer relationship management (CRM)is that consumers are spending more time making purchase decisions.

Accepted Answer

A) True 
 B)False

Question 19

Walmart is a successful example for retailing.The store emphasizes low pricing in its ads and promotes its message that customers can get more for their money.Walmart likely uses _________________________.

Accepted Answer

A)   income segmentation
B)   age segmentation
C)   gender segmentation
D)   ethnic segmentation

Question 20

The 80/20 principle holds that 20 percent of all customers generate 80 percent of the demand.Although the percentages usually are not exact,the general idea often holds true.Which consumer market segment is described here?

Accepted Answer

A)   Benefit segmentation
B)   Geographic segmentation
C)   Market segmentation
D)   Usage-Rate segmentation

Exam 8: Segmenting and Targeting Markets

Mass-marketing efforts will continue to be used by marketers:

A market segment is a subgroup of people or organizations having different characteristics that cause them to have distinct product needs.

According to family life cycle segmentation,young married or divorced couples with children have high liquid assets.

What is the similarity between a stock market and a labor market?

_____ involves dividing a market into groups such as newborns,infants,young children,tweens,Millennials,Generation X,Baby Boomers,and seniors.

Which statement is true of gender segmentation in the United States?

With regard to age segmentation,the tween and teenage cohort following the Millennials is sometimes called _____.

Pine Groove,a cosmetic brand that primarily caters to women,wants to reach out to the less-traditional male market.It conducts research and develops a new product especially for men.In this example,Pine Groove uses _____.

The combination of demographics,lifestyles,and geographic categories leads to ______________.

Cannibalization occurs when the sales of a firm's existing product increase with the introduction of a new product.

There are many scientific procedures for selecting segmentation variables to use in identifying a market and there is no need for having market knowledge for segmenting the market.

What is geographic segmentation? Briefly explain why consumer goods companies take a geographic approach to marketing.

Demographics provide the skeleton for developing segmentation strategies,but ___________adds meat to the bones.

Once known as a rugs brand,in 2006 Burberry revamped its product line to reinvent itself as a luxury brand by harnessing the power of heritage.Which strategy did Burberry use to influence the overall perception of its brand in the eyes of its old and potential new customers?

Chipotle stated they were "in the market for Mexican food" by competing on quality instead of price.Chipotle is a company that prides itself on serving "food with integrity." Which mass market targeting strategy did it use when entering the market?

One disadvantage of the personal and targeted nature of customer relationship management (CRM)is that consumers are spending more time making purchase decisions.

Walmart is a successful example for retailing.The store emphasizes low pricing in its ads and promotes its message that customers can get more for their money.Walmart likely uses _________________________.

The 80/20 principle holds that 20 percent of all customers generate 80 percent of the demand.Although the percentages usually are not exact,the general idea often holds true.Which consumer market segment is described here?