M: Marketing, 6e (Grewal)
1) The loyalty program My Starbucks Rewards, which allows members to pay via their mobile
device and earn points toward discounts and free offers, enables Starbucks to gather the purchase
behavior data, appropriately segment that customer, and offer customers deals within a week.
2) When a marketer adjusts the marketing mix to give customers a clear, distinctive, desirable
understanding of what the product does, the marketer is engaging in psychographic
segmentation.
3) For products like pencils and paper clips, marketers should probably use an undifferentiated
targeting strategy.
4) When deciding how to promote his new medical oncology center, Dr. Jones decided that he
did not need to throw a large grand opening reception. Instead, he promoted the center to the
internal medicine doctors in the area, who were the doctors most likely to refer patients to the
center. Dr. Jones was engaged in a concentrated targeting strategy.
5) It would be logical for bathing suit marketers to use geographic segmentation.
6) NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of
its fans were female. This is an example of psychographic segmentation.
7) The Value and Lifestyle Survey (VALS) conducted by Strategic Business Insights (SBI) is a
widely used tool for geographic segmentation.
8) Giant Food Stores in suburban Washington, DC, adjusts its ethnic food aisle offerings based
on the ethnic groups living near each store. Giant Foods is using geodemographic segmentation.
9) Positioning strategies generally focus either on how the product benefits the consumer or on
how it is better than competitors’ products.
10) As it relates to positioning, a self-values map displays the position of products or brands in
the consumer’s mind.
11) Perceptual maps include positions of current brands as well as ideal points where a consumer
segment would want a product to be.
12) The different methods of segmenting a market include targeting, positioning, psychographic,
and behavioral.
13) The first step in the segmentation process is to articulate the vision or objectives of the
company’s marketing strategy clearly.
14) Automobile manufacturers could build cars specially designed for very tall people (for
example, over seven feet), but it is likely that this segment is not substantial.
15) A complex product that is best described in writing will be difficult to explain to consumers
who are unable to read. For this reason, a segment in which many consumers could not read
would be considered unattractive because the consumers would not be responsive.
16) A company that sells only multigrain, low-calorie bread should use an undifferentiated
targeting strategy.
17) A value proposition compares the price of a product to its benefits.
18) Maintaining a unique value proposition can be sustained in the long term only in monopoly
situations or monopolistic competition situations.
19) Sally is in the new marketing department of a midsized lawn and garden company. She is
working on the firm’s first-ever STP analysis. She has defined the mission and objectives and
identified and selected a segmentation method. The next step is to
A) develop an advertising plan to promote the upcoming sales.
B) find marketing interns or hire new staff to help with implementation.
C) create pro forma financial statements to complete the package.
D) evaluate the attractiveness of the various segments identified.
E) use the Internet, catalogs, and vendor information to draw up a list of new products.
20) At which point in the STP process does a firm ensure its segmentation strategy is consistent
with and derived from its strengths, weaknesses, opportunities, and threats?
A) when the firm chooses a particular method for segmenting its market
B) when the firm articulates the vision or objectives of its marketing strategy
C) when the firm determines which segment is worth pursuing
D) when the firm assesses the attractiveness of a target market
E) when the firm presents the value of its product or service
21) Alex has found that both commercial and residential real estate buyers respond positively to
his marketing communication message. Alex has identified different ________ that respond
similarly to his marketing efforts.
A) mass customization consumers
B) geographic segments
C) market segments
D) self-concept customers
E) geodemographic segments
22) For each target market, General Imaging Corporation, a manufacturer of imaging equipment,
will engage in positioning, adjusting its marketing mix variables in order to give customers
A) a more flexible supply chain strategy.
B) a perceptual map of the imaging landscape.
C) more product features than the competition offers.
D) lower prices than the competition offers.
E) a clear, distinctive, and desirable understanding of their products relative to competing
products.
23) The first step in the STP process is to
A) identify the segmentation methods to be used.
B) produce a list of strengths and weaknesses of the firm’s past marketing strategies.
C) establish the overall strategy or objectives.
D) select target markets.
E) develop a marketing mix, so that an appropriate segment can later be identified.
24) For products like clothespins, which provide the same benefit for all consumers, marketers
should probably use a(n) ________ strategy.
A) concentrated targeting
B) lifestyle segmentation
C) benefit segmentation
D) undifferentiated targeting
E) differentiated segmentation
25) In a classic example of segmentation strategy, years ago Swift Meat Company transformed
turkey meat into “Butterball” turkeys. In doing so, the company
A) differentiated its product.
B) streamlined its delivery process.
C) created a new class of micromarketing.
D) defined consumers’ basic needs.
E) redefined mass customization.
26) Adidas Group owns Reebok, Rockport, and TaylorMade brands. Adidas uses the different
brands to pursue a(n) ________ strategy.
A) concentrated targeting
B) micromarketing
C) benefit targeting
D) differentiated targeting
E) undifferentiated targeting
27) Adidas Group owns Reebok and Rockport—both of which offer different types of shoes.
Having a variety of brands allows Adidas to use a differentiated targeting strategy to
A) engage in micromarketing for hard-to-fit shoe customers.
B) obtain a bigger share of the shoe market.
C) use mass marketing techniques.
D) utilize geographic segmentation.
E) generate economies of scale in advertising expenditures.
28) One of the benefits of a differentiated targeting strategy is that it allows the firm to diversify
its business and
A) decrease advertising spending.
B) focus on a single market segment.
C) lower overall risk.
D) use undifferentiated strategies in micro markets.
E) more widely market basic commodities.
29) A differentiated targeting strategy can allow a firm to obtain a bigger share of the overall
market; this strategy
A) is the cheapest option.
B) requires the use of advanced advertising techniques.
C) rarely works.
D) is likely more costly than an undifferentiated strategy.
E) is ineffective without multiple brand names.
30) Firms use a differentiated targeting strategy because
A) it is easier than mass marketing.
B) it helps obtain a bigger share of the market.
C) it is better than focusing on individual or small groups of potential customers.
D) most market segments are too small to be profitable.
E) banks are more willing to extend credit to companies with this strategic approach.
31) When Penguin Catering Services first opened, the owner decided to target only events at
resorts in its geographic region. Penguin Catering was using a(n) ________ targeting strategy.
A) concentrated
B) micromarketing
C) benefit-driven
D) differentiated
E) undifferentiated
32) ________ is an extreme form of a targeting strategy.
A) Macromarketing
B) Micromarketing
C) Benefit marketing
D) Differentiated targeting
E) Concentrated targeting
33) “Corporate pilot fish” are former employees who start a new business based primarily on
contacts and contracts with their old company. A corporate pilot fish would probably pursue a(n)
________ targeting strategy.
A) macromarketing
B) micromarketing
C) benefit-based
D) differentiated
E) undifferentiated
34) Many companies use the Internet to allow consumers to design customized products; for
example, Nike allows customers to order shoes with custom color combinations. This is a form
of
A) micromarketing.
B) concentrated targeting.
C) psychographic segmentation.
D) differentiated targeting.
E) undifferentiated targeting.
35) Four frequently used targeting strategies are the micromarketing, undifferentiated,
differentiated, and ________ targeting strategies.
A) geographic
B) benefit-based
C) economic
D) global
E) concentrated
36) When Mr. How, a Pennsylvania-based discount lumber and hardware chain, sent snow
blowers to its Augusta, Georgia, store in April, it was engaged in
A) concentrated segmentation.
B) geodemographic segmentation.
C) benefit segmentation.
D) psychographic segmentation.
E) misguided geographic segmentation.
37) Differences in weather and climate create opportunities for
A) concentrated targeting.
B) geographic segmentation.
C) benefit segmentation.
D) psychographic segmentation.
E) demographic segmentation.
38) Kellogg’s marketing communications about its Special K cereal appeal almost exclusively to
women. This is an example of ________ segmentation.
A) geographic
B) psychographic
C) demographic
D) benefits
E) behavioral
39) ________ segmentation is the most common basis of consumer market segmentation because
these segments are easy to define and usually easy to reach.
A) Geographic
B) Psychographic
C) Behavioral
D) Benefits
E) Demographic
40) Beer marketers know that high-school educated, working-class males from the ages of 25 to
40 make an attractive market for their products. This is a ________ segment of the beer market.
A) demographic
B) psychographic
C) behavioral
D) benefits
E) geographic
41) Television advertising has recently expanded to include “mini-ads,” which are short ads
lasting five to ten seconds. These ads are most useful in advertising to men, since men are more
likely than women to channel surf during commercial breaks. Given this fact, this type of
advertising will be more useful to marketers engaged in ________ segmentation.
A) demographic
B) psychographic
C) behavioral
D) benefits
E) geographic
42) Demographic segmentation is segmentation based on all of the following except
A) age.
B) gender.
C) education.
D) income.
E) lifestyle.
43) Psychographics is the segmentation method that delves into how consumers
A) adjust to demographic changes.
B) allocate scarce incomes to a variety of goods and services.
C) describe themselves.
D) value their livelihoods.
E) believe other people see them.
44) To develop psychographic segments, the marketer must understand consumers’
A) age, income, and education.
B) gender, race, and religion.
C) disposable personal income, benefit perceptions, and alternative egos.
D) self-values, self-concept, and lifestyles.
E) buying patterns and behaviors.
45) Paul is considering psychographics as a way to segment the market for his small travel
agency. This approach to segmentation offers him an advantage because
A) it is based on underlying motivations of target customers.
B) it is easier to use than demographics.
C) the travel business doesn’t respond well to other approaches to segmentation.
D) psychographics is the preferred method for service businesses.
E) psychographic segmentation is the least expensive method.