Question 1

Scott owns Buffalo Mountain Coffee in Deer Park,Ohio.He understands the need to segment his market,and available marketing research indicates there is much demand in the community for unique coffee drinks.However,he has few resources and cannot engage in intensive consumer research to precisely identify a segment.Which of the following strategies would you suggest he employ?

Accepted Answer

A)  Develop an undifferentiated strategy,because it is not a large community and he could create a single marketing mix that would serve the entire community. 
B)  Employ a macrosegmentation strategy because the data needed for such a strategy are both easy to get and fit his needs exactly. 
C)  Use a single-variable strategy because it offers an inexpensive alternative that would not require much experience to employ. 
D)  Use a multiple-variable segmentation strategy because it is easier to use than single-variable segmentation. 
E)  Conduct a VALS investigation of his buying market.

Question 2

A(n)_____ strategy entails selecting one segment of a market to target,and focuses on understanding the needs,motives,and satisfactions of the members of that segment,as well as on developing a highly specialized marketing mix.

Accepted Answer

A)  universal product 
B)  undifferentiated targeting 
C)  concentrated targeting 
D)  market development 
E)  product development

Question 3

Wrestling Merchandise
Market research has shown that 6- to 17-year-old males,18- to 24-year-old females,and 18- to 44-year-old males are most likely to watch a televised professional wrestling event or to attend a live match.Wrestling events are regularly broadcast in 120 different countries.Merchandise licensed by World Wrestling Entertainment (formerly known as the World Wrestling Federation)can be purchased at JCPenney and Walmart.Clothes for adults are used to reach markets that may not buy action figures,video games,and novelty candy,but who are still proud to sport World Wrestling Entertainment (WWE)trademarks.
-Refer to Wrestling Merchandise.The marketing research revealed that _____ segmentation can be used to identify the biggest fans of professional wrestling.

Accepted Answer

A)  benefit 
B)  psychographic 
C)  demographic 
D)  geographic 
E)  geodemographic

Question 4

The requirement for a market segment to be responsive means:

Accepted Answer

A)  over half of the consumers in the identified segment will be actively interested in the product 
B)  all the segments identified by a marketer should respond to the marketing mix 
C)  all the segments identified by a marketer should not respond to the marketing mix 
D)  the segments identified by a marketer should not differ in the level of their responsiveness to the marketing mix 
E)  the segment identified by a marketer should differ in how it responds to the marketing mix when compared to another segment confronted with the same mix

Question 5

The marketing manager of Gevalia gourmet coffees wants to target the gay male consumer because he thinks this segment of consumers appreciates and consumes gourmet coffee.Even though gay lifestyles are becoming more accepted socially,the manager is finding it difficult to determine the market potential for this segment because many gay consumers are not willing to admit their lifestyle publicly.Which criterion of a useful segment does this illustrate?

Accepted Answer

A)  Substantiality 
B)  Identifiability and measurability 
C)  Complexity 
D)  Responsiveness 
E)  Validity

Question 6

Miller Lite's long-running "Great Taste...Less Filling!" advertising campaign was ranked by Advertising Age magazine as the 8th-best advertising campaign in history.Miller Lite was using _____ segmentation in this ad campaign.

Accepted Answer

A)  geographic 
B)  demographics 
C)  psychographics 
D)  benefits 
E)  usage rate

Question 7

ThinkGeek is an online retailer that caters to computer enthusiasts and other "geeky" social groups.Their merchandise includes clothing,electronic and scientific gadgets,unusual computer peripherals,office toys,pet toys,child toys,and caffeinated drinks and candy.ThinkGeek runs a points-for-reward system called Geek Points,under which customers can earn rewards for buying more products.This is an example of segmentation by:

Accepted Answer

A)  demographic 
B)  benefit 
C)  aggregate 
D)  economic 
E)  usage-rate

Question 8

Deal$ stores sell a wide variety of low-priced merchandise: party supplies,cleaning products,toys,food,housewares,and health and beauty products for both men and women.Many items in the store are priced no higher than one dollar.Which type of demographic segmentation is Deal$ using?

Accepted Answer

A)  Ethnic 
B)  Usage rate 
C)  Income 
D)  Gender 
E)  Age

Question 9

Tower Fasteners developed a commanding position in the fastener industry by having in stock over 150,000 different types of fasteners.Tower's primary market is defined as companies with a need for specialized fasteners.All of the following are characteristics of the buying organization that Tower can use for segmentation EXCEPT:

Accepted Answer

A)  psychographic variables 
B)  the method the company uses to make purchases 
C)  geographic location 
D)  personal characteristics of purchase decision makers 
E)  company size

Question 10

What are the four criteria that are necessary to define a market?

Accepted Answer

The answer of What are the four criteria that are...

Question 11

_____ is one of the potential disadvantages associated with a multisegment strategy.

Accepted Answer

A)  Inadequate demand 
B)  Demarketing 
C)  Lower profits 
D)  Cannibalization 
E)  Loss of synergy

Question 12

Sure Fit,Inc.has begun a rebranding strategy to let customers know it no longer only produces slipcovers,but now also carries a line of rugs,window treatments,and bedding.Its _____ is described as women with average annual household income of $60,000 or more.

Accepted Answer

A)  market audience 
B)  market differentiation 
C)  perceived market 
D)  target market 
E)  aggregated market

Question 13

Small firms often adopt a concentrated marketing strategy to compete effectively with larger firms.

Accepted Answer

A) True 
 B)False

Question 14

One segment of a market is called a:

Accepted Answer

A)  slice 
B)  wedge 
C)  pocket 
D)  slot 
E)  niche

Question 15

Modern Bride is a publication that contains articles and lots of ads for the bride-to-be.Many young women consult this magazine as they plan their special day.The segmentation base used to define the publication's target market is based on _____ variables.

Accepted Answer

A)  geodemographic 
B)  geographic 
C)  family life-cycle 
D)  lifestyle 
E)  psychographic

Question 16

The slogan used by Apple to promote the iPhone,"There's an app for that," indicates the company relies heavily on benefit segmentation variables.

Accepted Answer

A) True 
 B)False

Question 17

The Ritz Carlton hotel chain is renowned for its service and individual treatment of its customers.All service staff and employees have note pads and are taught to record every little piece of information they learn about a customer.If a business traveler ordered soft pillows,only wanted martinis in his mini bar,and needed access to a fax machine,he would find all of these amenities in his room when he arrived.The Ritz Carlton is basing its one-to-one marketing on which of the following trends?

Accepted Answer

A)  The growing number of customers who do not have time to spend shopping 
B)  The fact consumers do not want to be treated like the masses 
C)  Data mining capabilities 
D)  The use of reward systems to increase brand loyalty 
E)  The growing market for luxury products

Question 18

H&M plans to open a new store in Saudi Arabia.It will be staffed completely by women.Saudi Arabia has strict laws about women interacting with men other than their husbands so only women will be permitted to shop there.Which type of demographic segmentation is H&M using?

Accepted Answer

A)  Lifestyle 
B)  Usage rate 
C)  Benefit 
D)  Age 
E)  Gender

Question 19

What is geodemographic segmentation? What is the result of geodemographic segmentation? Give one specific example that illustrates this type of segmentation.

Accepted Answer

The answer of What is geodemographic segmentation? What is the...

Question 20

Jane graduated from high school in 1978,is married,and has two teenaged children.Most of Jane's friends from high school have children who have already graduated from college,gotten married,and some with grandchildren.Jane and her former classmates are at difference stages of the:

Accepted Answer

A)  internalization phase 
B)  segmentation process 
C)  family life cycle 
D)  psychographic cycle 
E)  maturation process

Exam 8: Segmenting and Targeting Markets

A(n) _____ strategy entails selecting one segment of a market to target,and focuses on understanding the needs,motives,and satisfactions of the members of that segment,as well as on developing a highly specialized marketing mix.