Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
51. __________ is a type of segmentation in which the company strategically focuses on targeting a smaller
market with particular needs that the company can serve well.
a. Mass marketing
b. Demographic marketing
c. Niche marketing
d. One-to-one marketing
52. Company ABC segments customers by gender, age, education, and income. Company ABC’s segmentation
is based on __________ factors.
a. demographic
b. geographic
c. psychological
d. behavioral
53. Gender, age and income are all qualities of what segmentation base?
a. geographic
b. psychological
c. education
d. demographic
54. Regarding the phrase “time is money,” what type of effect does time seemingly have on money?
a. positive effect
b. no effect
c. little effect
d. negative effect
55. Which of the following is NOT a demographic variable?
a. gender
b. age
c. culture
d. education
56. Young adults are most likely to be interested in which of the following?
a. music technologies
b. diapers
c. health care options
d. travel
57. Newlyweds are most likely to spend money on which of the following?
a. charitable giving
b. furniture
c. music
d. health care
58. Empty nesters tend to start dreaming of spending their greater discretionary income on
a. music and movies.
b. furniture and remodeling.
c. higher education.
d. travel and hobbies.
59. The fact that snow-blowers tend to sell better in the North than in the South illustrates the importance of
considering __________ in marketing planning.
a. climate
b. urban living
c. culture
d. age
60. Which of the following is a geographic factor?
a. price
b. income
c. market size
d. media
61. A service called Prizm posits that MBAs who live in New York have a lot more in common with their
counterparts in London, Saö Paulo, and Tokyo, than they do with their neighbors in New York who are
relatively less educated or wealthy. What types of information are combined in this example?
a. geographic and demographic
b. geographic and psychological
c. psychological and demographic
d. psychological and behavioral
62. A popular tool for segmenting that uses psychographic data, and that is based on the belief that one’s
attitudes and value system determine one’s orientation to certain products and/or brands is called
a. Experian.
b. VALS.
c. Mals.
d. Prizm.
63. Which of the following is a psychological factor?
a. attitude
b. education
c. age
d. country
64. Some customers are __________, caring about new developments in their category and seeking out new
products.
a. opinion leaders
b. early adopters
c. market mavens
d. innovators
65. Which of the following examples is based on a psychological factor?
a. Sam purchases school clothes for his son.
b. Louise purchases furniture for her new house.
c. Macie purchases equipment for playing soccer.
d. Jalen purchases a new automobile that is good in snow.
66. What term refers to people who are trendy and fashionable in order to impress others and are often impulse
buyers?
a. stretchers
b. aficionados
c. innovators
d. strivers
67. Some customers are known for their expertise and involvement in a category and are willing to share
information and give advice, making them likely to generate word of mouth. These people are knows as market
a. tenders.
b. mavens.
c. sharers.
d. sellers.
68. One behavioral segment of great importance to the marketer is the __________ of the focal brand because it
is relatively easy to communicate to this group.
a. past user
b. future user
c. current user
d. non-user
69. What does the 80:20 rule say?
a. Eighty percent of sales will come from 20% of customers.
b. For every 80 people who look at a product, 20 will buy it.
c. For every 80 customers, 20 will be repeat customers.
d. Eight percent of customers are only interested in 20% of available merchandise.
70. There is a rule of thumb that says it costs _____ times more to acquire a new customer compared to
maintaining a loyal one.
a. 3
b. 6
c. 9
d. 12
71. Some customers are currently using a competitor’s brand or don't purchase a certain type of product. It is
__________ for marketers to identify, obtain information on, and woo these people.
a. easy
b. moderately difficult
c. challenging
d. impossible
72. Businesses plan for and interact differently with their larger clients than with their smaller ones. They assign
more client service personnel and extend more relationship management efforts because these customers tend to
be
a. more profitable.
b. cheaper.
c. less profitable.
d. higher quality.
73. Marketers identify segments best when iterating between two approaches. What are the two approaches?
a. customer, market
b. managerial, customer
c. managerial, company
d. market, company
74. The managerial perspective is important with respect to assessing whether serving a specific __________ is
consistent with overall corporate goals.
a. market segment
b. product
c. provider
d. competitor
75. An important element of an iterative segmentation is
a. a good company.
b. quality products.
c. good customer data.
d. good management.
76. Which of the following questions best helps a marketer determine the profitability of a market segment?
a. How many customers are in the segment?
b. Is a database available to identify potential customers?
c. Does the segment fit corporate goals?
d. How frequently do the customers purchase?
77. A(n) __________ segment is always a tempting one for marketers to target because marketers assume that
those customers can afford to purchase their goods or services.
a. international
b. upscale
c. small
d. large
78. The ideal goal for the marketer is to find a(n) __________ group of customers whose needs it can easily and
profitably meet.
a. quality
b. overserved
c. untapped
d. competing
79. It’s not unusual to see a segmentation study comprised of some usage variable (e.g., heavy vs. light users) or
some attitudinal variable (e.g., positively inclined toward our brand vs. loyal to a competitor). What type of
variable is it usually cross-tabbed with?
a. demographic
b. geographic
c. psychological
d. physical
80. Entrepreneurs may need to approximate Prizm and VALS data, because they are
a. not available to the public.
b. difficult to understand.
c. expensive.
d. not interesting to consumers.
81. Why is it not advisable to target an entire market with a new product offering?
82. Explain why market segmentation is better than mass marketing and one-to-one marketing.
83. What do marketers know about the demographic variables of age, household composition, and stage in the
life cycle?
84. How do marketers use geographic factors? Give examples.
85. VALS psychographic-based segmentation is based on the idea that consumers are inspired by one of three
primary motivations. Identify the three motivations and describe them.
86. Define “current users” versus others. How does this apply to marketers?
87. Marketers segmenting their business clients most frequently use “size.” Explain what this means and what
the limitations are.
88. Outline some differences between segmenting businesses versus segmenting consumers.
89. How do marketers segment a market?
90. Explain why many segmentation schemes fail.
