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1. Economists note that imperfect competition occurs because consumers have unique needs and desires.
a. True
b. False
2. Maslow’s hierarchy ranges from satisfaction of basic biological needs to more abstract needs regarding well-
being.
a. True
b. False
3. In marketing, we deal with customer differences through segmentation.
a. True
b. False
4. Collectively, a marketplace of consumers is homogeneous.
a. True
b. False
5. A market segment is an individual customer who shares similar inclinations toward your brand.
a. True
b. False
6. Some companies that tried mass customization have scaled back their attempts because it is not cost-
effective.
a. True
b. False
7. The goal of homogeneity in customers’ likes or dislikes is more achievable as the segment size gets smaller,
but if the segment is too small, it might not be profitable to serve.
a. True
b. False
8. On a continuum from mass marketing to one-to-one marketing, market segmentation is in the middle.
a. True
b. False
9. The mass marketing approach is usually realistic.
a. True
b. False
10. Segments become more homogeneous as they increase in size.
a. True
b. False
11. Older couples who are empty nesters dream of spending their greater discretionary income on technology
and furniture.
a. True
b. False
12. Coupons that are printed at grocery checkouts are a function of items the customer just purchased.
a. True
b. False
13. Income is a psychological variable.
a. True
b. False
14. Age is an easily identifiable demographic variable.
a. True
b. False
15. Families with higher household incomes hire more service workers.
a. True
b. False
16. Urban living affords certain elements of entertainment, and smaller towns offer different kinds of
amusement.
a. True
b. False
17. Since most marketplaces are international, country and cultural differences can be tremendous.
a. True
b. False
18. It is useful for marketers to understand the psychological and lifestyle choices that are relevant to the
brand(s) the marketer is pitching.
a. True
b. False
19. Opinion leaders, innovators, or market mavens are known for their expertise and involvement in a category.
a. True
b. False
20. One reason celebrity spokespeople are thought to be effective is that ordinary people aspire to be like the
celebrity, in whatever manner that is achievable.
a. True
b. False
21. Political party identifications have a clear and predictable effect on cereal consumption and cell phone
plans.
a. True
b. False
22. All of the qualities that marketers care about may be mapped onto segments in any product category.
a. True
b. False
23. We can directly observe attitudes, but we cannot use behaviors to infer attitudes and psychological states.
a. True
b. False
24. It is easier to identify, obtain information on, and woo customers who are currently using a competitor’s
brand or who aren’t even purchasers in the category.
a. True
b. False
25. The 80:20 rule is where 20% (or so) of your sales come from 80% (or so) of your customers.
a. True
b. False
26. An increasingly popular means of using co-purchasing patterns to generate cross-selling suggestions are
Internet recommendation agents.
a. True
b. False
27. “Current users” are relatively difficult to communicate with.
a. True
b. False
28. Data sources for segmenting businesses and consumers tend to be the same.
a. True
b. False
29. Businesses treat all clients the same way—whether large or small.
a. True
b. False
30. Size does not always correlate with future growth potential.
a. True
b. False
31. The least common marketing research technique used to segment customer data is cluster analysis.
a. True
b. False
32. Marketers identify segments best when iterating between a managerial top-down approach and a customer-
based assessment.
a. True
b. False
33. Sometimes a marketing manager might hold beliefs that are not consistent with the customer data.
a. True
b. False
34. A set of segments may be very clear from a statistical perspective, but they need to be useful from a
managerial point of view.
a. True
b. False
35. To marketers, the most important feature of segments is their size, not their profitability.
a. True
b. False
36. The ideal goal for the marketer is to find an untapped (or at least relatively underserved) group of customers
whose needs can easily and profitably be met.
a. True
b. False
37. An upscale segment is always a tempting one for marketers to target because marketers assume that those
customers can afford to purchase their goods or services, with a little less price sensitivity than other customers.
a. True
b. False
38. Profitability means number of customers.
a. True
b. False
39. Sometimes segments appear small only because the clustering was done too finely.
a. True
b. False
40. Lots of segmentation schemes fail because marketers focus on the wrong criteria.
a. True
b. False
41. Who created the hierarchy of needs?
a. Maslow
b. Watson
c. Skinner
d. Freud
42. Consumers have unique needs and desires. Economists call this
a. imperfect competence.
b. imperfect competition.
c. diverse demand.
d. diverse marketing.
43. Differences in __________ and preferences require that different products be provided to satisfy the
different segments’ needs.
a. companies
b. targets
c. perceptions
d. consumers
44. Instead of trying to appeal to the entire marketplace, smart marketers and smart companies will try to find
out
a. what will appeal to high-end customers.
b. which customers might like their product, and how to get the product into their hands.
c. which customers are price sensitive.
d. which customers have brand loyalty and seek a brand image similar to other brands they like.
45. Company ABC is interested in better understanding how different groups of customers feel about its
product. In order to do this, Company ABC will need to
a. position its product in the market.
b. segment the market.
c. mass market.
d. target market.
46. Considering a continuum from mass marketing to one-to-one marketing, marketing segmentation is
a. very close to mass marketing.
b. very close to one-to-one marketing.
c. in the middle.
d. on a different continuum.
47. As segments increase in size, it becomes __________ to satisfy them with the same product.
a. more difficult
b. easier
c. cheaper
d. more fun
48. __________ means that all customers are treated the same.
a. One-to-one marketing
b. Gender marketing
c. Group marketing
d. Mass marketing
49. __________ means that each customer serves as his or her own segment.
a. Geographic marketing
b. One-to-one marketing
c. Mass marketing
d. Psychological marketing
50. The contrast between mass marketing and one-to-one marketing illustrates that segments become more
__________ as they increase in size.
a. heterogeneous
b. favorable
c. homogeneous
d. unfavorable
