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70) Which of the following statements is TRUE of repositioning?
A) It involves targeting a large portion of a small market.
B) It involves understanding the marketing mix approach necessary to change present consumer
perceptions of the product.
C) It is popularly called a focus strategy or a niche strategy.
D) It involves developing different value offerings for different targeted segments.
E) It advocates that firms should direct energy and resources into establishing a learning
relationship with each customer.
71) The local sandwich shop has always sold calorie-laden sandwiches and recently introduced
six new sandwiches featuring vegetables and lower-calorie meats and cheeses to appeal to
health-conscious customers. What strategy is the sandwich shop pursuing?
A) repositioning
B) one-to-one marketing
C) concentration
D) tertiary target marketing
E) 80/20 rule
72) When a company tries to constantly develop the "next new thing," it is trying to establish
________ leadership as a source of differentiation.
A) service
B) image
C) price
D) personnel
E) innovative
73) When a company only hires employees who are competent, reliable, courteous, credible,
responsive, and able to communicate clearly, it achieves ________ leadership as a source of
differentiation.
A) personnel
B) convenience
C) image
D) price
E) service
74) Michael believes that the only motorcycle anyone should ever buy is a Harley-Davidson.
Whenever he sees the Harley Davidson logo on a product, he knows that product is a leader in
the market. What source of differentiation has Harley Davidson achieved?
A) personnel
B) convenience
C) image
D) price
E) service
75) When a company tries to make the product or service significantly easier to obtain than the
competition, it is trying to achieve ________ leadership as a source of differentiation.
A) service
B) image
C) price
D) personnel
E) convenience
76) Pamela only bought her cars from Lexis because they made it so easy to get them serviced by
picking her car up and bringing it back to her. Lexis shows ________ leadership.
A) innovative
B) image
C) price
D) personnel
E) service
77) Harold buys most of his groceries at Aldi because it has the cheapest groceries even though
he has to bring his own bags and bag his own groceries. Aldi demonstrates ________ leadership.
A) innovative
B) image
C) price
D) personnel
E) service
78) Millie prefers to stay at the Omni Hotel rather than the Embassy Suites because she knows
the Omni provides high-end bedding, luxurious robes and toiletry products for every customer.
What differentiation factor is affecting Millie's decision?
A) innovative
B) convenience
C) price
D) personnel
E) service
79) In the context of positioning errors, when consumers have only a vague idea about the
company and its products, and do not perceive any real differentiation, it is called ________.
A) repositioning
B) overpositioning
C) underpositioning
D) uninformed positioning
E) fuzzy positioning
80) In the context of positioning errors, when the claims made for the product or brand are not
regarded as credible by consumers, it is called ________.
A) underpositioning
B) repositioning
C) doubtful positioning
D) fuzzy positioning
E) overpositioning
81) NovoTech Inc. is a manufacturer of PCs, and most of its revenue is generated by selling PCs
to consumers. However, the company is struggling to extend the brand into other lucrative
product lines such as tablets and smartphones. In this scenario, NovoTech is suffering from the
error of ________.
A) underpositioning
B) doubtful positioning
C) overpositioning
D) confused positioning
E) repositioning
82) In the 1970s, Michelob beer changed its advertising messages frequently and saw sales
plummet. Slogans like "Weekends were made for Michelob," "Put a little weekend into your
weekday," and "Special times deserve a special beer" had consumers checking their calendars to
find the right time to drink a Michelob. Michelob was suffering from the positioning error of
________.
A) underpositioning
B) doubtful positioning
C) overpositioning
D) confused positioning
E) repositioning
83) HerboCare, a company that sells herbal soaps, has failed to increase its sales, as consumers
could not understand how soaps made by HerboCare were different or better than other herbal
soaps available in the market. In this scenario, HerboCare is suffering from the positioning error
of ________.
A) underpositioning
B) doubtful positioning
C) overpositioning
D) confused positioning
E) repositioning
40
84) Define the terms market segmentation, target marketing, and positioning.
85) What are the questions a marketing manager must answer in order to create effective
segmentation?
Answer: The four questions are:
86) What are the four consumer market segmentation approaches? Give an example of when you
might use each one.
87) Describe the VALS framework.
88) Describe the three steps in target marketing. Explain what factors/options should be
considered for each step.
89) Describe the four basic approaches to target marketing.
90) What are perceptual maps? How are they used to reposition a product?
