35. If Morton Salt saw all table salt customers as pretty much alike and thus offered only one marketing mix, it would
be using the _____ strategy.
a. directed
b. undifferentiated
c. segmented
d. differentiated
e. product-use
36. Smart Balance produces a line of milk products that are lactose-free. The milk comes in pint, quart, and half-gallon
cartons, as well as 16-ounce glass bottles. Smart Balance sells its pint cartons to school systems, its quart and half-
gallon cartons to grocery stores, and its glass bottles to vending machine operators. Smart Balance appears to use
a(n) _____ strategy in marketing its product to a target market that is likely to be _____.
a. undifferentiated; homogeneous
b. undifferentiated; heterogeneous
c. differentiated; homogenous
d. differentiated; heterogeneous
e. concentrated; heterogeneous
Chapter 5 – Target Markets: Segmentation and Evaluation
37. The undifferentiated targeting strategy for finding a target market will likely not be successful if:
a. product positioning is needed.
b. the firm defines the total market as its target market.
c. people within the market have heterogeneous needs.
d. people within the market have homogeneous needs.
e. the firm is capable of developing a single marketing mix that satisfies all people’s needs.
38. A market comprised of individuals or organizations with diverse product needs is called a(n) _____ market.
a. undifferentiated
b. concentrated
c. homogenous
d. differentiated
e. heterogeneous
Chapter 5 – Target Markets: Segmentation and Evaluation
39. Walmart sells numerous products, including packaged food, produce, automotive maintenance services, eyeglasses,
clothing,andtoys.Walmartadvertisesitselfasastorewhere“wesavepeople’smoneysotheycanlivebetter,”
focusingonitslowpricesasthecustomer’smostimportantneed.Walmart’sadvertisingappearstousea(n)_____
strategy to a market that is _____.
a. undifferentiated; homogeneous
b. undifferentiated; heterogeneous
c. differentiated; homogeneous
d. homogeneous; differentiated
e. heterogeneous; undifferentiated
40. Individuals, groups, or organizations that share one or more similar characteristics that cause them to have relatively
similar product needs are called:
a. market segments.
b. heterogeneous markets.
c. concentrated markets.
d. demographic segments.
e. strategic segments.
Chapter 5 – Target Markets: Segmentation and Evaluation
41. Mattel views the toy market as composed of four age groups, each with different needs and desires. Mattel is using
a(n) _____ targeting strategy for its groups, which are known as _____.
a. undifferentiated market; market segments
b. undifferentiated market; heterogeneous
c. differentiated; market segments
d. differentiated; the marketing mix
e. concentrated market; heterogeneous
42. The purpose of market segmentation is to:
a. differentiate products.
b. divide a total market to enable a marketer to develop a more precise marketing mix.
c. reduce the overall cost of marketing activities.
d. identify a single marketing mix that will be satisfactory for the general market.
e. meet the needs of homogeneous markets.
Chapter 5 – Target Markets: Segmentation and Evaluation
43. The process of dividing a total market into market groups because people within each group have relatively similar
product needs is called:
a. segmentation.
b. diversification.
c. target marketing.
d. concentration.
e. customization.
44. Several conditions must exist for market segmentation to be successful. These conditions include all of the following
except:
a. the total market should be divided so that segments can be compared on sales potential, costs, and profits.
b. customers’ needs for the product must be homogeneous.
c. the company must be able to reach the chosen segment with a particular marketing mix.
d. segments must be identifiable and divisible.
e. at least one segment must have enough profit potential to justify developing and maintaining a special
marketing mix for that segment.
Chapter 5 – Target Markets: Segmentation and Evaluation
45. A business advantage of the concentrated targeting strategy for any company is that it:
a. requires less market research and information.
b. requires less intensive analysis of customers’ characteristics and needs.
c. allows a firm to utilize all of its production capacity.
d. maintains the firm’s flexibility in moving into other market segments.
e. allows a firm to develop a special marketing mix for a single market segment.
46. A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n)
_____ strategy.
a. selective
b. focused
c. differentiated
d. concentrated
e. undifferentiated
Chapter 5 – Target Markets: Segmentation and Evaluation
47. When markets are comprised of people with differing product needs, the marketing manager should use a(n)
_____ targeting strategy.
a. differentiated
b. market-intensive
c. integrated
d. concentrated
e. undifferentiated
48. A disadvantage of the concentrated targeting strategy is that:
a. the firm’s financial condition is tied to a single and specialized marketing mix.
b. large sales volumes cannot be generated.
c. production costs may be higher than with other strategies.
d. marketing personnel may become dissatisfied with the limited opportunities provided by this approach.
e. marketing costs are often higher than for other strategies.
Chapter 5 – Target Markets: Segmentation and Evaluation
49. If Georgia-Pacific, a producer of home siding, decking, and other wood products, focused its marketing efforts to
home construction companies only, it would be using a(n) _____ strategy. If it sold the same products to both
construction companies and DIY retailers such as Home Depot, it would be using a(n) _____ strategy.
a. undifferentiated; undifferentiated
b. undifferentiated; differentiated
c. differentiated; multisegmented
d. concentrated; differentiated
e. concentrated; concentrated
50. Tiffany’s markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a
well-known brand name. It uses the same marketing mix to reach this market. Tiffany’s uses a (n) _____ strategy.
a. undifferentiated
b. differentiated targeting
c. exclusive targeting
d. heterogeneous
e. concentrated targeting
Chapter 5 – Target Markets: Segmentation and Evaluation
51. Interior Designs Inc. sells expensive custom-made draperies, bedding, and accessories through sales
representatives who are also interior designers. It also has another, slightly less expensive line that it sells through
storessuchasNordstrom’sandSaksFifthAvenue.Interior Designs Inc. is most likely using a (n) _____ targeting
strategy.
a. differentiated
b. undifferentiated
c. concentrated
d. homogeneous
e. heterogeneous
52. The primary advantage of a concentrated targeting strategy is:
a. it meets the needs of a wide range of consumers.
b. it allows a firm to specialize to meet specific customer needs.
c. it is more flexible than any other approach.
d. it is the least risky targeting approach.
e. its customers are the most willing to repurchase the same brands.
Chapter 5 – Target Markets: Segmentation and Evaluation
53. Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter &
Gamble is using a(n) _____ targeting strategy for laundry detergents.
a. multiuse
b. differentiated
c. stratified
d. undifferentiated
e. concentrated
54. Volkswagen markets its Routan to large families, its R32 racecar to men, and its Jetta to young singles. Which of
the targeting strategies is being implemented by Volkswagen?
a. Concentrated targeting strategy
b. Strategic targeting strategy
c. Differentiated targeting strategy
d. Undifferentiated targeting strategy
e. Multi-segmented targeting strategy
Chapter 5 – Target Markets: Segmentation and Evaluation
55. A targeting strategy in which an organization directs its marketing efforts at several segments is called a(n) _____
targeting strategy.
a. differentiated
b. total market
c. concentrated
d. undifferentiated
e. integrated
56. Which of the following products is most likely to be marketed using an undifferentiated approach?
a. bicycle
b. computer
c. notebook
d. seasoning salt
e. oscillating fan
Chapter 5 – Target Markets: Segmentation and Evaluation
57. After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is:
a. determining the demographic variables of the target market.
b. developing market segment profiles.
c. determining which segmentation variables to use.
d. selecting specific target markets.
e. evaluating relevant market segments.
58. Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller
homogeneous groups are called _____ variables.
a. marketing
b. classification
c. segmentation
d. stratification
e. dividing
Chapter 5 – Target Markets: Segmentation and Evaluation
59. Age, rate of product use, location, and gender are all examples of common:
a. demographic variables.
b. geographic characteristics.
c. targeting strategies.
d. psychographic variables.
e. segmentation variables.
60. Segmentation variables are usually grouped into four categories:
a. demographic, geographic, religion, and income.
b. geopolitical, income, behavioristic, and psychographic.
c. attitudes, lifestyles, behaviors, and gender.
d. geographic, demographic, psychographic, and attitudes.
e. demographic, geographic, psychographic, and behavioristic.
Chapter 5 – Target Markets: Segmentation and Evaluation
61. Which of the following is not one of the major categories of consumer market segmentation variables?
a. Demographic characteristics
b. Geographic variables
c. Psychographic dimensions
d. Situational variables
e. Behavioristic characteristics
62. Alpine Ski Shops is looking for new markets for both its brick and mortar retail stores and its catalog division.
Alpine Ski Shops would most likely use a(n) _____ base for market segmentation of its stores and a(n) _____
base for market segmentation of its catalog division.
a. behavioristic; geographic
b. geographic; demographic
c. demographic; psychographic
d. environmental; demographic
e. geographic; behavioristic
Chapter 5 – Target Markets: Segmentation and Evaluation
63. TimeWarner Cable uses a segmentation strategy for its cable TV packages based on market characteristics such
as age, gender, or income. Which of the following segmentation variables is being implemented by this ?
a. Demographic variable
b. Geographic variable
c. Psychographic variable
d. Product-related variable
e. Education variable
64. With its Venus razor, Gillette was the first marketer to offer a triple blade razor specifically designed for women.
This is an example of market segmentation using _____ variables.
a. demographic
b. psychographic
c. geographic
d. family life cycle
e. product use
Chapter 5 – Target Markets: Segmentation and Evaluation
65. Kelly’s Kids is a home-based business that sells high-quality children’s clothing at premium prices using in-home
parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class
income. Kelly’s Kids is using _____ variables to segment its market.
a. demographic
b. psychographic
c. sociographic
d. behavioristic
e. geographic
66. Cosmopolitan magazine, Car and Driver magazine, Secret deodorant, and Axe body wash are all products whose
marketers have used segmentation based on:
a. behavior.
b. psychographics.
c. product use.
d. gender.
e. income.
Chapter 5 – Target Markets: Segmentation and Evaluation
67. A marketer that targets customers based on marital status and the presence and age of children is using:
a. behavioristic segmentation.
b. lifestyle variables.
c. psychographic variables.
d. family life cycle.
e. phase of life segmentation.
68. Which of the following products is most likely to have its market segment based on age?
a. Nike shoes
b. Lipton Iced Tea
c. Bic pens
d. Legos
e. Carpet
Chapter 5 – Target Markets: Segmentation and Evaluation
69. If Campbell were to offer single serving “Soup for One” packages to household markets, it would be using
segmentation based on:
a. income.
b. age.
c. preferences.
d. geographic considerations.
e. family life cycle.
70. Which of the following products is least likely to be segmented according to stages in the family life cycle?
a. Single-family homes
b. Cars and SUVs
c. European vacations
d. Soft drinks
e. General Electric appliances
Chapter 5 – Target Markets: Segmentation and Evaluation
71. Family life cycle is most typically based on:
a. income.
b. geographic location.
c. marital status and age of children.
d. occupation.
e. buying power.
72. Population density and city size are _____ variables used for market segmentation.
a. geographic
b. demographic
c. psychographic
d. environmental
e. geodemographic
Chapter 5 – Target Markets: Segmentation and Evaluation
73. Many marketers are concerned about the number of potential customers within a certain area of land because of
the different requirements to serve dissimilar areas. This segmentation variable is known as _____.
a. micromarketing
b. population
c. market density
d. MSA
e. PMSA
74. Zerex markets its radiator liquid to different markets; one as a coolant and the other as antifreeze. Which of the
following segmentation variables is being implemented by Zerex?
a. Demographic variable
b. Psychographic variable
c. Lifestyle variable
d. Geographic variable
e. Behavioristic variable
Chapter 5 – Target Markets: Segmentation and Evaluation