Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
86) Fiona is looking to expand her pet grooming business and wants to evaluate the profitability
of a potential new market. The area she is looking at has 2,000 homes and Fiona estimates that
20 percent of them would be likely to use her service. She charges $45 per grooming and on
average customers groom their pets six times a year. Fiona estimates her variable costs to expand
her business will be $10 per grooming and her fixed costs are $10,000. How much profit would
Fiona make on this new segment?
A) $72,240
B) $98,000
C) $108,000
D) $128,000
E) $410,000
87) Paula is trying to determine whether the segments she is considering for her day care center
will be profitable. Which of the following factors is least relevant to her analysis?
A) the number of children needing day care in the immediate area
B) the fixed costs of operating the center
C) the percentage of parents able and willing to use day care center services
D) the average number of school-age siblings of children attending day care
E) the charge price minus the variable cost of providing service to each child
88) Ronaldo wants to develop an Internet auction-based business and is working through the STP
process. After establishing his objectives, describing potential market segments, and evaluating
the attractiveness of each segment, Ronaldo now has to
A) differentiate his product line.
B) consider future customer loyalty.
C) create a perceptual map.
D) select a target market.
E) divide geographic segments into lifestyle groups.
89) When selecting a target market, firms will be most successful if they
A) decide between demographic and geographic segmentation methods.
B) seek out opportunities to customize products.
C) develop a strong communication plan.
D) match the firm's competencies with a market segment's attractiveness.
E) reposition the brand.
90) ________ involves defining the firm's marketing mix variables so that target customers have
a clear, distinctive, desirable understanding of the firm's offerings relative to competitors'
offerings.
A) Processing
B) Perceptualizing
C) Positioning
D) Proportioning
E) Prospecting
91) Regina wants to position her financial services company. Regina can position her services
according to all of the following except
A) the value proposition.
B) product attributes.
C) symbols.
D) competitive comparisons.
E) profitability.
92) Whenever the president of the local public university promotes the institution, he emphasizes
the university's price (much lower than neighboring private colleges), high-quality education,
and student-centered faculty. He is positioning the institution based primarily on
A) value.
B) product attributes.
C) symbols.
D) competitive comparisons.
E) profitability.
93) We often see advertisements touting a product as being made with natural ingredients, or
being long-lasting. Marketers using these types of promotions are positioning their products
based primarily on
A) the value proposition.
B) product attributes.
C) symbols.
D) competitive comparisons.
E) profitability.
94) Marco was assigned to help create a positioning strategy for his employer's products based
on product attributes. He should consider
A) the features the engineers feel are most important.
B) the ways the sales representatives have been positioning the firm's products.
C) the characteristics that helped his firm win a statewide award for excellence in manufacturing.
D) what the target market would consider the most important features.
E) the safety record of the firm and its products.
95) Almost all U.S. political candidates use some combination of red, white, and blue in their
campaign posters. They are trying to position themselves in voters' minds using
A) the value proposition.
B) salient attributes.
C) symbols.
D) the competition.
E) perceptual maps.
96) Jim wants to position his firm against his competitors. In doing so he should
A) never select a competitor in the same neighborhood.
B) avoid making the competitor's product look undesirable.
C) avoid looking too much like the competitor so as not to confuse the target segment.
D) avoid discussing the strengths of his product so that competitors won't be aware of his
product quality.
E) avoid discussing the weaknesses of his competitors so they won't retaliate.
97) A ________ is often used to illustrate the position of a firm's products or brands in
consumers' minds.
A) mass marketing analysis
B) psychographic profile
C) perceptual map
D) loyalty timeline
E) Tapestry analysis
98) Within a perceptual map, a(n) ________ represents where a particular market segment's
desired product would lie.
A) point of parity
B) strategic target
C) Tapestry cluster
D) ideal point
E) benefit centroid
99) "Why create a perceptual map?" asked David. Andreas, the senior marketing manager, gave
him four reasons. All of the following are valid reasons except
A) "It's a quick way for senior managers to see not only our product but each of our competitors'
products, all at once."
B) "It's a way to demonstrate the dimensions that our customers think are important."
C) "It shows where we aren't—and where our competitors aren't—in our customers' and
prospects' minds."
D) "It's a way to show the position of the company throughout the product's life cycle."
E) "We can easily show where we are positioned and how large the market is."
100) The perceptions of ________ are being measured in a perceptual map.
A) competitors
B) strategic planners
C) the company's executive team
D) the current R&D team
E) consumers
101) Which of the following segmentation methods is being used when M&M's offers special
wedding-themed packaging for customized M&M's (imprinted with the names of the bride and
groom)?
A) occasion segmentation
B) geographic segmentation
C) lifestyle segmentation
D) benefit segmentation
E) loyalty segmentation
102) Godiva Chocolates produces specially decorated boxes of candies for Valentine's Day,
Easter, and Christmas. This is an example of ________ segmentation.
A) occasion
B) loyalty
C) geographic
D) psychographic
E) demographic
103) Which of the following defines a value proposition?
A) the unique value that a product or service provides to customers
B) a special discount offer dropping the price
C) an advertisement that talks about value
D) a display of the position of products or brands in the consumer's mind
E) the one feature that will prompt a customer to buy the product
104) Overriding desires that drive how we live our lives are called
A) self-values.
B) self-concept.
C) self-esteem.
D) self-confidence.
E) self-control.
105) When Victoria's Secret offers different product lines, such as its Pink line, it is trying to
capture the market by
A) using segmentation, targeting, and positioning.
B) offering everything to everyone.
C) trying lots of options to find out which one works.
D) doing continual test marketing.
E) focusing exclusively on its Pink brand.
106) When evaluating the attractiveness of the segment, if a segment is expected to react
positively to the firm's offering, we say that the segment is
A) responsive.
B) identifiable.
C) reachable.
D) substantial.
E) reactive.
107) What is the best situation in the Circles for a Successful Value Proposition framework?
A) The firm's benefits overlap with both customer needs/wants and competitors' benefits.
B) The firm's offering overlaps with customer needs/wants but not with competitors' offerings.
C) The firm's offering overlaps with competitors' benefits but not with customer needs/wants.
D) Customer needs/wants overlap with both the firm's benefits and competitors' benefits.
E) None of the three circles overlaps.
108) In the Circles for a Successful Value Proposition framework, the value proposition is
represented by
A) the intersection between customer needs/wants and competitors' benefits.
B) the intersection between the firm's benefits and competitors' benefits.
C) the intersection between customer needs/wants and the firm's product's benefits.
D) the intersection between all three of the circles.
E) the part of the firm's benefits that doesn't overlap with anything.
109) In the Circles for a Successful Value Proposition framework, the portion of the customer
needs/wants circle that doesn't overlap with anything else represents
A) the firm's value proposition.
B) competitors' value propositions.
C) low-priority needs and wants that customers are willing to give up.
D) unmet customer needs/wants.
E) unknown customer needs/wants that the firm does not understand.
110) All of the following are one of the main components of a value proposition except
A) the target market.
B) the name of the product or brand being offered.
C) the product/service category or concept being offered.
D) the price of the product or service being offered.
E) the unique point of difference or benefits offered.
111) Let's Dish is a meal-preparation service operating in three states. Customers visit a Let's
Dish store to select and partially prepare their meals, which are then packaged for the freezer. At
home, the customer can pull a meal out of the freezer and warm it in the oven or microwave. If
Let's Dish wanted to expand into new areas of the United States, what segmentation method
would probably be most useful in choosing new locations?
A) loyalty segmentation
B) benefit segmentation
C) psychographic segmentation
D) geodemographic segmentation
E) demographic segmentation
112) Social networking sites that compete directly with Facebook have a difficult time surviving;
however, LinkedIn has survived by focusing on the needs of business professionals, who seek to
network with colleagues, share their expertise, post online résumés, and look for new jobs. What
segmentation method is LinkedIn using?
A) loyalty segmentation
B) benefit segmentation
C) psychographic segmentation
D) geodemographic segmentation
E) demographic segmentation
113) You are employed at a hotel near Boston University, and you want to increase the hotel's
appeal to the parents of university students. How could the hotel market itself to these parents?
114) Why must a firm's STP strategy be consistent with and derived from the firm's mission and
objectives?
115) In theory, why is micromarketing the ultimate in STP strategy? What is the weakness
associated with micromarketing?
