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39) The annual Sporting News Baseball Yearbook uses 15 different covers featuring a baseball
star from each of its regions in the United States, yet each regional issue has the same magazine
content. The publisher is using which of the following segmentation strategies?
A) multiple products with one segment
B) one product with one channel of distribution
C) one product with multiple market segments
D) one product with changes based on customer behavior
E) multiple products with multiple segments
40) Which of the following is a disadvantage of employing a multiple products, multiple market
segments strategy if not implemented well?
A) higher sales but lower profits
B) reduced quality and higher prices
C) meeting customer needs but at the expense of higher prices
D) lower prices but with higher production costs
E) higher quality but lower prices
41) Which of the following is an example of a multiple products, multiple market segments
strategy?
A) College Football magazine selects different covers for essentially the same written content in
order to appeal to different geographic markets in the United States.
B) A new movie used several different movie trailers. One set of previews showed the action
scenes in order to attract one audience and the other set showed romantic scenes to attract
another audience.
C) Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for
those who wish to carry lots of cargo.
D) Arm and Hammer Baking Soda can be used for baking and to remove odors from
refrigerators and cat litter boxes.
E) Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for
women.
42) Which of the following is an example of a multiple products, multiple market segments
strategy?
A) College Football magazine selects different covers for essentially the same magazine in order
to appeal to different geographic markets in the United States.
B) A new movie used several different movie trailers. One set of previews showed the action
scenes in order to attract one audience and the other set showed romantic scenes to attract
another audience.
C) Arm and Hammer Baking Soda can be used for baking and to remove odors from
refrigerators and litter boxes.
D) Betty Crocker carries one line of cake mixes for people with conventional ovens and another
line of cake mixes for people with microwave ovens.
E) Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for
women.
43) Kellogg's has several cereals targeted at different types of users. This is an example of
multiple products aimed at multiple markets. Manufacturing these different cereals is clearly
more expensive than producing only one but seems worthwhile if it adds to the manufacturer's
profits and
A) meets standards for new product testing.
B) uses the same promotion and packaging for all segments.
C) cannibalizes the earlier products.
D) stabilizes competition.
E) better serves customers' needs.
44) Tailoring products or services to the tastes of individual customers on a high-volume scale is
referred to as
A) family branding.
B) mass customization.
C) product differentiation.
D) economies of scale marketing.
E) build-to-order.
45) Custom Foot operates six retail locations. At first glance, none looks different from a typical
boot store. But here the only boots on hand are display models. There is no inventory for sale and
customers go home empty-handed, awaiting their orders. Customers browse the store, choosing
style, color, and leather type, with about 100 displays to provide style guidelines. Custom Foot
guarantees your boots will be ready within three weeks. This is an example of
A) mass customization.
B) specialty customization.
C) virtual merchandising.
D) one product and multiple market segments.
E) multiple products and multiple market segments.
46) ChoiceShirts is an online company that makes made-to-order T-shirts. Its online customers
can order their shirts using any downloaded photo inserted into 600 templates or even design a
shirt from scratch. This is an example of
A) family branding.
B) mass customization.
C) multiple products and multiple market segments.
D) one product and multiple market segments.
E) specialty customization.
47) Lands' End will custom-fit a Marinac jacket and make it with additional features such as
thumb loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com.
This is an example of
A) family branding.
B) mass customization.
C) "Tiffany/Walmart" marketing.
D) market melding.
E) specialty customization.
48) Nike employs a ________ strategy at its website, nikeid.com, which allows customers to
design a sneaker to their own personal specifications.
A) product sampling
B) product clustering
C) mass customization
D) usage segmentation
E) psychographic segmentation
49) Name Maker is an online company that sells, among other items, high-end gift wrapping that
can have custom slogans or names printed on it, such as the name of a person celebrating a
birthday or a couple who is getting married. This made-to-order gift wrapping is an example of
A) family branding.
B) mass customization.
C) synergistic marketing.
D) "Tiffany/Walmart" marketing.
E) specialty customization.
50) Manufacturing a product only when there is an order from a customer is referred to as
A) order customization.
B) a one product, one market segment strategy.
C) synergistic marketing.
D) build-to-order.
E) specialty customization.
51) Wonk is a unique furniture company that design, builds, and retails in Brooklyn, NY. You
can customize your design with creative input, including personalizing items with wood and
lacquer options or environmentally conscious materials and finishes, though the options are not
unlimited. Wonk relies on
A) order customization.
B) a one product, one market segment strategy.
C) build-to-order manufacturing.
D) specialty customization.
E) mass customization.
52) Organizational synergy is the increased customer value achieved through
A) performing organizational functions more efficiently.
B) more discounts or larger rebates at the point of sale.
C) involvement of the ultimate consumer in product design.
D) an increase in the knowledge of competitors.
E) shared ownership of the organization through publicly traded stock.
53) The increased customer value achieved through performing organizational functions such as
marketing or manufacturing more efficiently is referred to as
A) aggregation.
B) organizational synergy.
C) segmentation.
D) amalgamation.
E) valuation.
54) The ultimate criterion for an organization's marketing success is that ________ as a result of
increased synergies.
A) costs decrease
B) market share increases
C) product deficiencies decrease
D) customers should be better off
E) new products flourish
55) All of the following are examples of increased customer value from organizational synergy
except which?
A) lower prices
B) increased brand awareness
C) more products
D) improved distribution
E) improved quality of existing products
56) When a new product or a new retail chain steals customers and sales from the organization's
older products and retail outlets, it is referred to as
A) cannibalization.
B) amortization.
C) product appropriation.
D) product pilfering.
E) marketing Darwinism.
57) When Ann Taylor, a well-known retailer of sophisticated women's clothing, started losing
sales to its own LOFT stores that feature moderately priced casual clothes, Ann Taylor was
dealing with the marketing phenomenon known as
A) amortization.
B) guerrilla marketing.
C) shrinkage.
D) marketing Darwinism.
E) cannibalization.
58) Suppose marketers want to use product differentiation and market segmentation strategies.
What question should they ask when considering the potential for cannibalization with these
strategies?
A) Will our new products steal customers or sales from our older ones?
B) Will the products compete head-to-head with those of a competitor?
C) Can this action successfully draw customers away from competitors?
D) Are there enough similarities within the market segment to warrant such high costs?
E) Will this action eliminate the need for individualized advertising and promotion?
59) Cannibalization would most likely occur if
A) Dell adds high-end speaker systems to its line.
B) General Mills launches Caramel Crunch Cheerios.
C) General Motors markets a motorcycle similar to the Can-Am Spyder Roadster three-wheel
bike.
D) Pillsbury adds boxed sugar to its product mix.
E) Procter & Gamble adds a new line of baby clothing to its Pampers stable of products.
60) Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to offer
A) a low-priced product to a high-income or high net worth segment.
B) a high-priced product to a low-income or low net worth segment.
C) different variations of the same basic offering to high-end and low-end segments.
D) a high-priced and a low-priced offering to a single market segment.
E) entirely different offerings to high-end and low-end segments.
61) Which of the following is an example of a Tiffany/Walmart strategy?
A) College Football magazine selects different covers for essentially the same magazine in order
to appeal to different geographic markets in the United States.
B) A new movie used several different movie trailers; one showed the action scenes in order to
attract one audience and the other showed romantic scenes to attract another audience.
C) Arm and Hammer Baking Soda can be used for baking and to remove odors from
refrigerators and litter boxes.
D) Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a
slightly different version for $22.
E) Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for
women.
62) The Walt Disney Co. carefully markets two distinct Winnie-the-Poohs; one is the original
line-drawn figure on fine china sold at Nordstrom and the other is a cartoon-like Pooh on
polyester bed sheets sold at Target. This is an example of
A) mass customization.
B) a Tiffany/Walmart strategy.
C) one product and multiple market segments.
D) price discrimination.
E) psychographic market segmentation.
63) You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend
and pay $4.50. Or you can buy a Hallmark card from its new $0.99 line of greeting cards, made
with lesser-quality materials but just as sentimental, sold at Barnes & Noble bookstores. This is
an example of
A) mass customization.
B) organizational synergy.
C) one product and multiple market segments.
D) price discrimination.
E) a Tiffany/Walmart strategy.
64) The purpose of the five key steps in segmenting and targeting markets is to
A) identify competitors that provide similar products that satisfy a firm's customers' needs.
B) provide guidance to reposition a firm's products.
C) generate new-product ideas for firms that are not growing in market share.
D) link market needs of customers to the organization's marketing program.
E) correlate directly to each of the five environmental forces.
65) The first step in segmenting and targeting markets that links customer needs to marketing
actions is to
A) group potential buyers into segments.
B) develop a market-product grid and estimate size of the overall market.
C) select target markets.
D) group products to be sold into categories.
E) take marketing actions to reach target markets.
66) The final step in segmenting and targeting markets that links customer needs to marketing
actions is to
A) take marketing actions to reach target markets.
B) group potential buyers into segments.
C) select target markets.
D) group products to be sold into categories.
E) develop a market-product grid and estimate size of the overall market.
67) There are five steps involved in segmenting and targeting markets. What should a marketer
do after he or she has grouped products to be sold into categories?
A) Create product groupings.
B) Identify market needs.
C) Take marketing actions to reach target markets.
D) Develop a market-product grid and estimate size of markets.
E) Form prospective buyers into market segments.
68) A marketing manager goes through several steps to put a market segmentation plan into
effect. This includes being able to form market segments and then ________ without
encountering excessive costs.
A) eliminate potential nonbuyers
B) identify segmentation variables
C) select the market segments to target
D) redirect their purchase behaviors
E) ignore any and all similarities
69) All of the following are criteria used for forming market segments except which?
A) difference of needs of buyers among segments
B) potential for increased profit
C) cost of reaching the segment
D) potential of a marketing action to reach a segment
E) simplicity and cost-effectiveness of assigning potential buyers to segments
70) Which of the following is a criterion used in forming market segments?
A) similarity of segments to competitors' segments
B) differences between potential suppliers or distributors
C) differences of needs of buyers within a segment
D) market size of the segment
E) potential of a marketing action to reach a segment
71) The best segmentation approach is the one that
A) makes it easiest to reach the segment.
B) maximizes the opportunity for future profit and ROI.
C) recognizes different needs of buyers among different segments.
D) recognizes similarities of needs of potential buyers within a segment.
E) is simplest and least costly in assigning potential buyers to segments.
72) Which of the following is not a reason to segment a market?
A) The ability to assign buyers to a segment is simple and cost-effective.
B) It would cause an increase in market share or profit.
C) All the buyers in the entire market have similar wants and needs.
D) There is a potential marketing action to reach it.
E) There are different wants and needs of buyers in the entire market.
73) Which of the following is not a criterion that would support forming market segments?
A) The ability to assign buyers to a segment is cost-effective and simple.
B) The result of segmenting will cause an increase in market share or profit.
C) There are significant similarities among buyers in the market segment.
D) There is a potential marketing action to reach the segment.
E) The cost to reach the segment exceeds the expected returns.
74) Selling a product to a different market segment usually requires a different marketing action
that, in turn, means greater costs. If increased revenues don't offset extra costs of this action, a
marketer should
A) increase the advertising budget.
B) prune the product offerings.
C) family brand the products.
D) combine segments.
E) group products into categories.
75) Criteria for forming segments involve both similarities and differences. In terms of the needs
of buyers, the similarities must be ________ a segment, and the differences must be ________
segments.
A) between; among
B) throughout; absent in
C) within; among
D) absent in; throughout
E) among; across
76) Criteria for forming segments involve both similarities and differences. Which of the
following statements is most accurate?
A) Within a segment, the needs of potential buyers should be different; among segments, the
needs of buyers should be similar.
B) Within a segment, the needs of potential buyers should be similar; among segments, the needs
of buyers should be different.
C) The needs of buyers should be different, both between segments and within segments.
D) The needs of buyers should be the same, both between segments and within segments.
E) If there are any differences at all, you should forgo any segmentation.
77) Grouping potential buyers into meaningful segments involves meeting some specific criteria
that answer which of the following questions?
A) Is this product useful on a global scale?
B) Is it possible to reposition this product?
C) Is there too much competition for this product?
D) Is the market loyal to the product?
E) Would segmentation be worth doing and is it possible?
