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Indicate whether the statement is true or false.
1. Dynamic segmentation approaches adjust to fit the changes that occur in customers’ lives.
a. True
b. False
2. Market segmentation helps decision makers to more accurately define marketing objectives and better allocate
resources.
a. True
b. False
3. When making a purchase, satisficers consider numerous suppliers, solicit bids, and study all proposals carefully before
selecting one.
a. True
b. False
4. The final step in market segmentation is selecting segmentation descriptors
a. True
b. False
5. For a successful market segmentation, one marketing mix cannot be used for another market segment.
a. True
b. False
6. Cannibalization occurs when the sales of an existing product remain the same despite the introduction of a new product.
a. True
b. False
7. A market segment is a subgroup of people or organizations having different characteristics that cause them to have
distinct product needs.
a. True
b. False
8. With the personal and targeted nature of customer relationship management, consumers spend more time making
purchase decisions.
a. True
b. False
9. Single-variable segmentation is clearly more precise than multiple-variable segmentation
a. True
b. False
10. The distinctions between products created through product differentiation can be either real or perceived.
a. True
b. False
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11. Promotion is one of the components that form a marketing mix.
a. True
b. False
12. A market is people or organizations with needs or wants and with the ability and the willingness to buy.
a. True
b. False
13. A firm’s marketing mix is intended to bring about a mutually satisfying exchange relationship with a market.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
14. In the context of strategies for selecting target markets, which of the following is a disadvantage of an undifferentiated
targeting strategy?
a. It is difficult to tailor marketing mixes to the preferences of individual market segments
b. It often results in sterile, unimaginative product offerings that have little appeal to anyone
c. It results in cannibalization of products
d. It increases production and marketing costs of a firm
15. The Glam Gazelle is a fashion magazine that targets people who are fashion enthusiasts. The magazine primarily
focuses on the latest trends, features interviews with designers, and keeps its readers up-to-date on the best deals in
clothing and accessories.Identify the market segmentation strategy adopted by The Glam Gazelle.
a. Usage-rate segmentation
b. Geographic segmentation
c. Psychographic segmentation
d. Benefit segmentation
16. In the context of purchasing profiles, _____ are business customers who consider numerous suppliers, solicit bids, and
study all proposals carefully before selecting one.
a. laggards
b. innovators
c. optimize
d. satisficers
17. Dreamer Games launched a new game that became the highest selling game in the market. As a result, the sale of its
other games dipped to an all-time low. This scenario best exemplifies ________.
a. diversification
b. differentiation
c. cannibalization
d. personalization
18. Which of the following is a criterion for successful market segmentation?
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a. The market segment must comprise people with different product needs
b. The market segment must comprise people of different characteristics
c. The market segment must be large enough to warrant developing and maintaining a special marketing mix.
d. The market segment must be divided according to the North American Industry Classification System
19. In the context of a buying process, which of the following statements is true of satisficers
a. They select the best supplier who satisfies their product and delivery requirements
b. They study numerous proposals carefully before selecting one.
c. They contact familiar suppliers and place orders with the first one that fulfills their requirements
d. They contact new and unfamiliar suppliers when they need to purchase a product
20. Cram Books Inc. is apublisher. It has separate labels for books for children, books for adolescents, and books for
adults. Given this information, Cram Books Inc. is positioning its products by _________.
a. popularity
b. application
c. emotion
d. product user
21. AidTek is a pharmaceutical company. Which of the following strategies will the company most likely employ if it
decides to adopt a concentrated targeting strategy?
a. It will manufacture and sell strong as well as mildpainkillers.
b. It will reward doctors who prescribe its drugs.
c. It will set up discount drugstores chains in developingcountries.
d. It will exclusively manufacture and sell a drug to treat acromegaly, a rare hormonal disorder.
22. Laelle Chocolates Inc. is a confectionery company that manufactures candies. It does not use specific strategies to
target children while marketing its products. Instead, it uses the same strategies to promote its candies among all
consumers in the market. This is an example of a(n) _____.
a. multisegment targeting strategy
b. individual targeting strategy
c. undifferentiated targeting strategy
d. concentrated targeting strategy
23. Terra Corp. produces a wide range of furniture, such as cabinets, book cases, and wardrobes. It divides its consumer
market into several groups of people who have similar interests in wooden furniture. In this case, dividing its consumer
market:
a. enables Terra Corp. to meet the markets’ need with a single marketing mix.
b. enables Terra Corp. to define customer needs and wants precisely
c. eliminates the need for defining marketing objectives
d. eliminates the need for defining marketing objectives
24. The customer relationship management technique that focuses on thanking customers for their business to a company
exemplifies the trend of _____.
a. time savings
b. personalization
c. technology
d. loyalty
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25. Way Tech Inc., an electronics company, manufactures smartphones of various price ranges and features. Its premium
smartphones target the social elite, the trendy and colorful smartphones target teenagers and young adults, and the more
basic range of phones target the older population. These divisions are referred to as __________.
a. positioning bases
b. market segments
c. perceptual maps
d. affiliate networks
26. A firm that adopts an undifferentiated targeting strategy assumes that
a. A firm that adopts an undifferentiated targeting strategy assumes that
b. it can compete effectively with large firms
c. concentration of all of the firm’s resources in a single market will result in cannibalization
d. individual customers have similar needs that can be met with a common marketing mix.
27. Jen&JohnInc. beganby manufacturingFruit X, a health drink. The company aimed Fruit X at the entire health
drinksector. Afterward, the company changed its strategy. At present, it has15 health drinks targeted at consumers of
different age groups. In this scenario, Jen&John Inc. has successfully adopted the strategy of _________.
a. market segmentation
b. affiliate marketing
c. green marketing
d. cause-related marketing
28. _____ refers to segmenting markets by region of a country or the world, market size, market density, or climate.
a. Geographic segmentation
b. Benefit segmentation
c. Demographic segmentation
d. Usage-rate segmentation
29. Volten Inc. is an apparel store. It has separate sections for casual wear, office wear, and party wear. It also has goods
of different price ranges to suit people of various income levels. In this way, it caters to different sections of the society.
Volten Inc. is demonstrating positioning by _____.
a. product class
b. product user
c. competitor
d. product user
30. Betty buys all her clothes from Class Defined’s shopping Web site. The homepage of the shopping Web site now
automatically shows her a catalog of clothes based on herpurchases. It also shows her the best prices.Class Defined has
successfully implemented _________.
a. income segmentation
b. geographic segmentation
c. product differentiation
d. customer relationship management
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31. In order to attract customers who are blue-collar workers, Prisly Inc., a laundry detergent manufacturer, introduced a
liquid detergent that easily removes tough stains. Soon after, the management noticed that there was a significant drop in
the sales of its detergent powder as the company’s loyal customers, who previously purchased the detergent powder,
started purchasing the more effective liquid detergent. As a result, Prisly Inc. was forced to reduce production of its
detergent powder. In this scenario, it is evident that Prisly Inc. has adopted a(n) _____.
a. multisegment targeting strategy
b. multisegment targeting strategy
c. undifferentiated targeting strateg
d. concentrated targeting strategy
32. Tennot Designs Inc. manufactures and sells clothes and shoes. Which of the following strategies will the company
most likely employ if idecides to adopt a concentrated targeting strategy?
a. It will manufacture and sell clothes for men, women, and children.
b. It will manufacture and sell unisex clothes
c. It will focus on satisfying the clothing needs of people who are extremely tall
d. It will focus on customizing clothes according to each customer’s preference
33. Jay Grains positions its cerealsin the marketas the onlycereal that is made from whole grains and does not contain
sugar. This gives the company a significant advantage over its competitors. Given this information, which of the
following strategies has Jay Grains adopted to position its products?
a. Market penetration
b. Geographic segmentation
c. Perceptual mapping
d. Product differentiation
34. Fritz Spa is a manufacturer of personal care products.Most menperceived it to produce grooming products only for
women.To change this perception, Fritz Spa started selling some of its products in dark-colored packaging and added “for
men and women” next to thebrand name in thoseproducts.Shortly, Fritz Spa managed to increase its customer base, and a
lot of men started purchasing itsproducts. In this scenario, which of the following strategies has Fritz Spa used?
a. Geographic segmentation
b. Repositioning
c. Perceptual mapping
d. Cannibalization
35. Kirksand Airlines is well-known for providing excellent service and personalized attention to its flyers. The staff listen
carefully to the flyers’ wants and needs. If a flyer had any specific requests, the staff member would see to it that the
flyer’s needs are immediately attended to. In this scenario, on which of the following trends has Kirksand Airlines based
its customer relationship management?
a. Personalization
b. Time savings
c. Loyalty
d. Technology
36. Which of the following is an advantage of a multisegment targeting strategy
a. It significantly reduces the risk of product cannibalization
b. It provides economies of scale in manufacturing and marketing
c. It helps in satisfying the needs of a niche market
d. It decreases the costs involved in product design, marketing research, and management
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37. Which of the following targeting strategies results in cannibalization of products?
a. A multisegment targeting strategy
b. The universal targeting strategy
c. An undifferentiated targeting strategy
d. A concentrated targeting strategy
38. ShopandRun, a retail company, sends a 50% discount couponto its frequent customers on their birthdays. They also
have programs that allow the customers to earn reward points and win additional discounts. This customer relationship
management (CRM)techniquefocuses on the trend of _________.
a. loyalty
b. technology
c. time savings
d. generalization
39. Companies that successfully implement customer relationship management tend to
a. maximize the role of distributors in marketing
b. customize the goods and services offered to their customers
c. assume that customers have similar needs that can be met with a common marketing mix.
d. minimize the use of database technology
40. A firm using a(n) _____ essentially adopts a mass-market philosophy, viewing the market as one big market with no
individual segments
a. undifferentiated targeting strategy
b. niche targeting strategy
c. individual targeting strategy
d. concentrated targeting strategy
41. Which of the following is a reason why consumer goods companies take a regional approach to marketing?
a. Companies have the opportunity to take more time to react to competition
b. Consumer markets lack intense competition
c. Baby boomers and seniors can be easily attracted using this approach
d. Baby boomers and seniors can be easily attracted using this approach
42. In the context of customer relationship management, _____ offers marketers a more cost-effective way to reach
customers and enables businesses to personalize their messages.
a. repositioning
b. undifferentiated targeting
c. loyalty
d. new technology
43. In the context of customer relationship management trends, which of the following statements is true of
personalization?
a. It uses mass-media approaches to meet the expectations of customers
b. It increases the time taken by customers to make purchase decisions
c. It involves rewarding customers for their business to a firm
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d. It treats customers as individuals who have their own unique sets of needs and wants
44. Jemba Jeans has launched a new range of affordable jeans that is highly resistant to wear and tear as well as stains.
The companycalls this new range of jeans “theworkman jeans,”and it is targeted at a particular market segment. In this
case, Jemba Jeanshas adopted a(n) ________.
a. cannibalization strategy
b. multisegment targeting strategy
c. undifferentiated targeting strategy
d. concentrated targeting strategy
45. Mass-marketing efforts are used by marketers because
a. consumers have their own unique sets of needs and wants
b. the time consumers spend on making purchase decisions has increased in recent times
c. of the need to create brand awareness or to remind consumers of a product
d. the importance of rewarding individual consumers for their loyalty has declined in the recent years
46. Glorious Resorts offers its customers a customized stay package. The customers are allowed to pick the room, cuisine,
duration of stay, and sightseeing venues before bookingtheir stay. Glorious Resorts has based its customer relationship
management (CRM) on the trend of ________.
a. personalization
b. time savings
c. loyalty
d. technology
47. Synergy Energy, a snack manufacturer, uses a single television advertisement to promote its range of snacks. It
displays all its products at the end of the advertisement and does not talk about any particular product. The company
believes that individual customers have similar needs that can be met with a common marketing mix.This scenario best
exemplifies a(n) __________.
a. multisegment targeting strategy
b. cannibalization strategy
c. undifferentiated targeting strategy
d. concentrated targeting strategy
48. Starlight Jewelry sends Lauren a birthday greeting card along with a pendant as a token of appreciation for shopping
frequently at its store. The trend portrayed in this customer relationship management technique is _____.
a. loyalty
b. technology
c. time savings
d. time savings
49. Nalpas Inc., an apparel company, manufactures clothes for men, women, and children. It further divides its core
customers on the basis of demographic variables such as income, ethnic background, and family life cycle. These
divisions are known as _____.
a. positioning bases
b. market segments
c. perceptual maps
d. market positions
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50. The purpose of market segmentation is to
a. change consumer attitudes and beliefs toward a product
b. divide a market into submarkets of equal size and equal number of customers
c. group a large number of markets together, enabling a company to serve them simultaneously
d. enable a marketer to tailor marketing mixes to meet the needs of one or more specific segments
51. Which of the following statements is true of a concentrated targeting strategy?
a. It allows a firm to serve two or more well-defined market segments simultaneously
b. It is often adopted by small firms to compete effectively with much larger firms
c. It follows a mass-market philosophy by viewing the market as one big market without any individual segments.
d. It often results in cannibalization, which occurs when sales of a new product cut into sales of an existing product.
52. Carlson Tires sells tiresbased on the climate conditionsto Winoa—a country that is covered in snow for most of the
year—and to Sinoa—a country that is known for its harsh summers.Themarketing technique used by Carlson
Tiresexemplifies _________.
a. gender segmentation
b. geographic segmentation
c. income segmentation
d. age segmentation
53. Flexwell advertises its tires as “the only tirethat can withstand the hottest temperatures.”Flexwellis positioning its
product on thebasis of _________.
a. popularity
b. its price
c. emotion
d. its attribute
54. Which of the following statements is true of market segmentation?
a. It helps marketers to design marketing mixes to match the characteristics of one or more segments
b. It helps marketers to adopt a single market mix to meet the needs of customers in the market
c. It helps marketers to adopt a single market mix to meet the needs of customers in the market
d. It helps marketers to focus on satisfying customer needs rather than meeting the organization’s objectives.
55. Wesley Electronics Inc. is a company that manufactures electronic gadgets. The marketing managers of the company
spend a great deal of money on advertising in order to create awareness of the company’s products among potential
customers. They employ various methods of advertising, such as print, broadcast, and online advertising. According to the
steps of market segmentation, Wesley Electronics Inc. is most likely:
a. selecting a market or product category for study
b. designing and implementing marketing mixes
c. profiling and analyzing market segments
d. selecting segmentation descriptors for a market
56. Which of the following is a similarity between a stock market and a labor market?
a. Both adopt a barter system to facilitate the exchange of products
b. Both are composed of people who are unwilling to spend large sums of money for products or services.
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c. Both are composed of people with specific wants that can be satisfied by particular product categories
d. Both deal in selling high-end, expensive products
57. A concentrated targeting strategy differs from an undifferentiated targeting strategy in that a concentrated targeting
strategy:
a. results in cannibalization of products
b. involves selecting a market niche for targeting its marketing efforts
c. views the market as one big market with no individual segments
d. uses a common marketing mix for the entire market
58. _____ is a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of
products in customers’ minds.
a. Market segmentation
b. Product differentiation
c. Perceptual mapping
d. Product tracing
59. The editorial board of Gamers’ Page, a magazine that primarily caters to people who are enthusiastic about sports and
gaming, targets people who enjoy games. This type of market segmentation used by the editorial board of Gamers’ Page is
an example of _____.
a. usage-rate segmentation
b. geographic segmentation
c. psychographic segmentation
d. benefit segmentation
60. ModerateWhich of the following statements is true of a product positioning strategy?
a. It assumes that consumers do not compare products on the basis of their features
b. It varies according to the geographic location of a market
c. The quality of competing offerings does not influence product positioning
d. The quality of competing offerings does not influence product positioning
61. Explain the steps followed in segmenting a market
62. Discuss the reasons why consumer goods companies adopt geographic segmentation as their approach to market
segmentation.
63. How do marketers use customer relationship management (CRM) as a targeting tool?
64. Describe the product differentiation strategy used by marketers to distinguish their products from competitors.
65. Discuss the ways in which market segmentation can be useful to marketers.
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Answer Key
1. True
2. True
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