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118) Which of the following is a basis used to segment U.S. organizational markets?
A) geographic
B) psychographic
C) income
D) prospects
E) education
119) Variables such as statistical area, the North American Industry Classification System
(NAICS) code, and usage rate are all examples of ways to
A) differentiate products.
B) forecast sales to a consumer market.
C) segment an organizational market.
D) promote NAFTA.
E) segment a consumer market.
120) Which of the following statements about market segmentation for organizational markets is
most accurate?
A) Criteria for segmenting markets are the same whether the market is composed of consumers
or organizations.
B) Both consumer markets and organizational markets use demographic, geographic, and
behavioral bases to segment markets.
C) Psychographic criteria are just as important in segmenting organizational markets as they are
in segmenting consumer markets.
D) Consumer markets use market segmentation criteria while organizational markets do not.
E) The greatest difference in market segmentation strategies between consumer and
organizational markets is the number of employees employed in the segmentation process.
121) Evergreen Air Center in Marana, Arizona, is the world's biggest parking lot for unwanted
commercial aircraft. Airlines pay from $750 to $5,000 a month for its storage service. The warm,
dry air where the operation is located serves as a cheap and effective airplane preservative.
Which segmentation variable might Evergreen use to segment the market?
A) NAICS sector, such as manufacturers, or retailers, or lawyers
B) number of locations
C) who buys, such as individual buyer or buying groups
D) metropolitan statistical area
E) number of employees
122) The United Talent Agency represents country singer Trace Adkins in negotiations with
various venues in which he could perform. Imagine that the agency decided the singer would not
perform at venues located in communities that have fewer than 100,000 residents. In this
example, the agency would be using ________ segmentation.
A) entertainment
B) psychographic
C) geographic
D) usage rate
E) behavioral
123) Australia-based Renewable Energy Ltd. sells a $10 million device that converts manure into
energy. One of these devices is capable of generating energy equal to $2 million of natural gas
per year. The company believes its target market consists of businesses similar to its first
customer, a fertilizer manufacturer that was located in a rural area. If the firm expands to the
United States, it most likely will use which of the following strategies to segment its market?
A) behavioral and geographic
B) number of employees and behavioral
C) purchase location and purchase type
D) NAICS code and geographic
E) behavioral and NAICS code
124) If Wendy's customers are buying an eating experience, which of the following would make
the most sense for grouping the products Wendy's sells?
A) grouping by caloric intake
B) grouping by price
C) grouping by meal occasion
D) grouping by usage rate
E) grouping by level of uniqueness
125) Grocery retailer Safeway displays the thousands of items it sells in aisles containing related
items or product groupings. Examples would be the pet food aisle or the soft drink aisle. Why
would Safeway display and sell product groupings in this manner?
A) The groupings increase the number of market-product combinations on the market-product
grid, which makes it a more manageable framework for subsequent analysis.
B) This form of product groupings makes it easier for customers to get in and out of the store
more quickly, creating time utility.
C) The products are grouped so people can relate to them in a more meaningful way when they
shop.
D) Product groupings can be generated quantitatively to show which adhere to the 80/20 rule.
E) Suppliers get preferential treatment based upon the number of different UPCs they provide.
126) Hallmark places its scrapbook materials, photo albums, and related supplies into one
product group because
A) it was easier to forecast future sales since there were fewer market-product combinations.
B) customers could buy in quantity and take advantage of quantity discounts.
C) their suppliers provided free displays and shelving to highlight Hallmark's products.
D) it helped buyers relate to the products and make decisions in a more meaningful way.
E) it allowed customers to compare price and quality with competitors who displayed their
products in a similar manner.
127) A market-product grid is a framework to relate
A) total estimated expenses for each product sold to each market segment.
B) total anticipated revenue for each product-market segment combination.
C) total anticipated profit for each product sold to each market segment.
D) the market segments of current buyers to relative market share compared to the largest
competitor.
E) the market segments of potential buyers to meaningful product groupings.
128) Each cell of the complete market-product grid shows the
A) relative market share.
B) estimated market size.
C) investment required to reach the market.
D) market growth rate.
E) estimated profit.
129) After establishing the market segments and product groupings on a market-product grid, the
next step is to
A) fill in the appropriate cells with precise statistical data from primary and/or secondary
sources.
B) estimate, with intelligent guesstimates as necessary, the market size for each cell.
C) total the vertical columns to identify the greatest marketing synergies and efficiencies.
D) total the horizontal rows to identify greatest operations/production synergies and efficiencies.
E) identify a marketing action for every product-market combination in the grid.
130) One advantage of a market-product grid is that it can be used to
A) make cost-cutting decisions under conditions of uncertainty.
B) screen many new-product ideas in order to select the one with the best long-run market
potential.
C) determine which target market segments to select and which product groupings to offer.
D) select representative samples of consumers for marketing research studies.
E) relate the product life cycle to consumer demand.
131) Determining the size of specific markets within a market-product grid is helpful in
determining which target market segments to select and
A) how to implement the 80-20 rule.
B) which products to group into meaningful categories.
C) how to implement a harvesting strategy.
D) which product groupings to offer.
E) which products to reposition.
132) Figure 9-9 above shows the market-product grid for a Wendy's restaurant next to a large
urban university campus. The best way to describe how the student market is segmented is
A) the level of discretionary income the student has.
B) whether the student lives near the campus or far away.
C) whether the student has the disposable income to eat at Wendy's.
D) combining where the student lives, if on campus, or what time the student commutes.
E) the meals eaten at the Wendy's restaurant.
133) Figure 9-9 above shows the market-product grid for a Wendy's restaurant next to a large
urban university campus. Assume a large market (shown by a 3) is three times the size of a small
market (shown by a 1) and a medium market (shown by a 2) is twice the size of a small market.
The meal occasion (product grouping) that comprises the largest product grouping is
A) breakfast.
B) lunch.
C) between-meal snack.
D) dinner.
E) after-dinner snack.
134) Figure 9-9 above shows the market-product grid for a Wendy's restaurant next to a large
urban university campus. Assume a large market (shown by a 3) is three times the size of a small
market (shown by a 1) and a medium market (shown by a 2) is twice the size of a small market.
The largest potential market segment consists of
A) students that live in a dormitory.
B) students that live in an apartment.
C) students that are day commuters.
D) students that are night commuters.
E) faculty or staff members.
135) All of the following are criteria used for selecting target market segments except which?
A) compatibility with the organization's objectives and resources
B) market size
C) simplicity and cost of assigning potential buyers to segments
D) competitive position
E) cost of reaching the segment
136) Which of the following is a criterion used for selecting a target market?
A) similarity of needs of potential buyers within a segment
B) difference of needs of sellers between segments
C) feasibility of a marketing action to reach a segment
D) expected market growth
E) simplicity and cost of assigning potential buyers to segments
137) It is not recommended that a firm select a target segment that
A) would require entry in a global marketplace.
B) requires more than one marketing action.
C) has few competitors that target this same segment.
D) is incompatible with its company's goals or objectives.
E) has a growth potential that would require increasing the current workforce.
138) Best Foods Co. is considering expanding beyond the regional market segments now served
by its Hellmann's mayonnaise. One criterion management wants to use to evaluate potential new
geographic market segments is whether additional real estate must be purchased or leased to
serve new segments. This is an example of which criterion used to select target market
segments?
A) Best Foods' competitive position in the segment
B) Best Foods' product groupings
C) expected growth of the market segment
D) size of the market segment
E) cost of reaching the segment
139) A rehabilitation center wants to target women in their 20s who have received some
permanent disability as the result of a skiing accident. In terms of the criteria used for selecting a
target segment, this market may
A) have no expected growth.
B) not be compatible with the company's current resources.
C) not be worth targeting since its market size is very small.
D) not be readily accessible to the firm's marketing programs.
E) be relatively expensive to reach.
140) During its market segmentation process for the Nike LeBron 15 basketball shoe, which sells
for more than $185 a pair, Nike decided to concentrate on affluent teens rather than members of
high school basketball teams. This is an example of
A) selecting target market segments to reach.
B) forming products to be sold into groups.
C) developing a market-product grid and estimating size of markets.
D) taking marketing actions to reach target markets.
E) forming prospective buyers into segments.
141) Jordan Lewis owns a company that makes Triangle BBQ Sauce. She wants to target local
people who like the special blend of flavors found only in North Carolina barbecue sauce. In
developing a marketing strategy to sell the sauce, Lewis decided to join Goodness Grows in
North Carolina, a specialty food association that advertises local products and distributes them to
local supermarkets and gourmet shops. Lewis has just
A) formed a market segment using critical product features.
B) formed products to be sold into groups.
C) developed a market-product grid and estimating size of markets.
D) taken a marketing action to reach a target market segment.
E) formed prospective buyers into segments.
142) Which of the following competitors mentioned in the text should the owner of a Wendy's
restaurant monitor closely due to its explosive growth in the number of current and proposed
locations—one that is or may soon be near this Wendy's?
A) Burger King
B) In-N-Out Burger
C) McDonald's
D) Five Guys
E) Smashburger
143) When considering the quick-service restaurant competition, it will be most important for
Wendy's to consider not only the offerings of Burger King, McDonald's, Five Guys, and other
hamburger chains but also the
A) meals at golf and country clubs.
B) dormitory meal plans at surrounding colleges and universities.
C) items for sale at gas stations and convenience stores.
D) local farmer's markets that sell produce.
E) nearly every food item sold at local grocery stores.
144) In its early years, Apple was often called "Camp Runamok" because
A) every employee was encouraged to do his or her own thing.
B) it was concentrating on laptops while everyone else was concentrating on personal computers.
C) all the employees were so young, so they often played more than they worked.
D) there were no coherent product lines targeted at identifiable market segments.
E) its personal computers were running amok with viruses, spyware, and other problems.
145) In an Apple market-product grid for its personal computer line, the professional segment of
medium/large businesses seems willing to purchase all of the items in Apple's product line. This
allows Apple to enjoy cost savings due to
A) segment differentiation.
B) marketing synergies.
C) product synergies.
D) segment repositioning.
E) product differentiation.
146) According to the Apple market-product grid above, Apple would most likely get the least
market synergies from
A) teachers and college staff.
B) individuals and small home office users.
C) medium/large businesses and college faculty.
D) students, teachers, and college faculty.
E) creative professionals.
147) In the Apple market-product grid shown above for its personal computer line, the iMac is
popular among all the segments Apple can target. This allows Apple to enjoy
A) segmentation synergies.
B) marketing synergies.
C) product synergies.
D) the 80/20 rule.
E) frequency marketing.
148) According to the Apple market-product grid above, Apple would most likely get the least
product synergies from the
A) Mac Pro and MacBook Pro.
B) Mac Pro and iMac.
C) Mac Pro and MacBook Air.
D) Mac Pro and Mac Mini.
E) iMac and Mac Mini.
149) Two key types of synergies are
A) supplier and distributor synergies.
B) marketing and product synergies.
C) industry-dominated and consumer-dominated.
D) product and production synergies.
E) consumer and market synergies.
150) Marketing synergies often come at the expense of product synergies because
A) product synergies are more effective for penetrating a market rather than creating one.
B) multiple market segments usually require multiple products.
C) it is easier to change a product than to completely develop a new marketing plan.
D) a single customer segment will likely require a variety of products, each of which must be
designed and manufactured.
E) no company can afford to do both at the same time.
151) The place a product occupies in consumers' minds on important attributes relative to
competitive products is referred to as
A) product repositioning.
B) relative positioning.
C) competitive positioning.
D) product positioning.
E) selective perception.
152) Product positioning refers to
A) an outdated concept that assigns product value by association with social class.
B) the place a product offering occupies in consumers' minds on important attributes.
C) the competitive advantage of one product over another.
D) changing the place a product occupies in a consumer's mind relative to competitive products.
E) using a market-product grid to place products in their appropriate places on that grid to
identify potential untapped markets.
