75. Subaru is producing a new seven-passenger van with all-wheel drive. Which of the following would be the best
variables for segmenting the market for this new model?
a. Gender and age
b. Geographic location and family life cycle
c. Income and geographic location
d. Family life cycle and income
e. Geographic location and gender
76. Systems such as PRIZM and Acorn provide companies with lifestyle and demographic information about
neighborhoods throughout the United States. This information is used to aid:
a. behavioristic segmentation.
b. geodemographic segmentation.
c. market density analysis.
d. demographic segmentation.
e. geographic segmentation.
Chapter 5 – Target Markets: Segmentation and Evaluation
77. Justin Franklin’s company is interested in locating areas where the average income is high, the average age range is
25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His
company would most likely find possible markets through:
a. U.S. Census Bureau information.
b. geographic segmentation variables.
c. geodemographic segmentation.
d. climate information.
e. psychographic segmentation.
78. Micromarketing is:
a. a market segmentation approach in which firms focus precise marketing efforts on very small geographic
markets.
b. developing a very specific marketing mix that will effectively meet the needs of only a small segment of the
market.
c. marketing efforts that are tightly controlled by high-level executives in the organization.
d. a way to segment the market to meet the needs of individuals with the same motives and personality
attributes.
e. creating advertising that is so specific to a certain type of individual that few people outside that micromarket
will respond to the message.
Chapter 5 – Target Markets: Segmentation and Evaluation
79. Retail-site location analyses, unique product offerings, and special advertising campaigns are all examples of the use
of:
a. market density.
b. demographic segmentation.
c. behavioristic segmentation.
d. environmental segmentation.
e. micromarketing.
80. Which of the following is the biggest drawback to using psychographic variables?
a. These variables are not strongly reflective of consumer behavior.
b. These variables are difficult to measure.
c. These variables give poor information about consumer needs.
d. These variables do not reflect socioeconomic characteristics of consumers.
e. The resulting segments are difficult to be reached.
Chapter 5 – Target Markets: Segmentation and Evaluation
81. The three most commonly used psychographic segmentation variables are:
a. personality, perception, and learning.
b. personality, perception, and behavior.
c. motives, attitudes, and lifestyles.
d. attitudes, personality, and perception.
e. personality, motives, and lifestyles.
82. Seventh Generation is a company producing products that limit the amount of negative impact on the environment.
Their product line includes dishwashing liquid, toilet paper, paper towels, baby wipes, and laundry detergent, to
name a few. Seventh Generation is now interested in producing a new line of clothing; mostly t-shirts, shorts, and
long pants for both men and women. Their research indicates that they should use psychographic segmentation in
their marketing strategy. Which group of segmentation variables will be implemented by Seventh Generation?
a. Geographic location
b. Age, sex, and socioeconomic characteristics
c. Social class variables
d. Personality characteristics, motives, and lifestyles
e. Family life cycle, social class, and religion
Chapter 5 – Target Markets: Segmentation and Evaluation
83. When using personality characteristics as a market segmentation variable, marketers generally:
a. conduct personality assessments of their potential target market to determine which personality
characteristics they possess.
b. use research developed by clinical psychologists to determine which personality characteristics consumers
using their products are most likely to have.
c. use generic characteristics that all members of the population have.
d. use a positively viewed characteristic they assume much of their target market has or would like to have.
e. conduct a series of focus groups to determine both the positive and negative characteristics members of their
target market are perceived to have.
84. The psychographic variable that includes numerous characteristics related to people’s activities, interests, and
opinion is:
a. motive.
b. social class.
c. personality.
d. stage in family life cycle.
e. lifestyle.
Chapter 5 – Target Markets: Segmentation and Evaluation
85. If a company segments its market on the basis of their reasons for purchasing a particular product, the primary
segmentation variable in use is:
a. lifestyle.
b. motives.
c. personality.
d. benefit expectations.
e. personality attributes.
86. Demographic variables such as income and occupation, as well as how people spend their time and the importance
of things in their surroundings, are all factors considered in _____ segmentation.
a. behavioristic
b. social class
c. lifestyle
d. personality
e. family life cycle
Chapter 5 – Target Markets: Segmentation and Evaluation
87. A widely used system for classifying individuals on the basis of lifestyle is:
a. VALS.
b. PRIZM.
c. CMSA.
d. LIFO.
e. Prospect Zone.
88. Which of the following is an example of a behavioristic segmentation variable?
a. Family size
b. Climate
c. Age
d. Usage rate
e. Personality characteristics
Chapter 5 – Target Markets: Segmentation and Evaluation
89. Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic
beverages. This is an example of market segmentation based on:
a. behavioristic variables.
b. benefits.
c. lifestyles.
d. psychographic variables.
e. demographic variables.
90. The Gap Inc. has recently produced a new line of athletic wear that closely competes with a designer label in its
quality, utility, and appearance. However, it is about half the cost of the designer brand. Product managers for The
Gap line plan to use price sensitivity, brand loyalty, and end use as variables to segment their target market. These
are all _____ variables for market segmentation.
a. psychographic
b. usage
c. demographic
d. lifecycle
e. behavioristic
Chapter 5 – Target Markets: Segmentation and Evaluation
91. Alli Inc. segments its diet pills based on those who have morning cravings, those who tend to overeat near the end
of the day, those who need all day long appetite suppression, and those who want appetite control and more energy.
This is an example of market segmentation based on variables of:
a. demographics.
b. lifestyles.
c. psychographics.
d. behavior.
e. personality characteristics.
92. Crest toothpaste is available in several different versions, such as Crest Whitening, Crest Tartar Control, Crest
Whitening with mouthwash, and Crest Total Effects. Given these different variations of the product, it appears that
the marketers of Crest are segmenting the market by using _____ segmentation.
a. psychographic
b. product usage
c. benefit
d. end-purpose
e. advantage
Chapter 5 – Target Markets: Segmentation and Evaluation
93. Variables such as geographic location, type of organization, customer size, and type of product usage are used to
segment _____ markets.
a. consumer
b. business
c. government
d. international
e. most target
94. Dell Inc. segments its business markets into small business, corporate, government agencies, K-12 schools, and
higher education institutions. The primary segmentation variable used in this example is:
a. geographic location.
b. type of organization.
c. secondary product use.
d. customer size.
e. market potential.
Chapter 5 – Target Markets: Segmentation and Evaluation
95. Which of the following variables would most likely be used to segment a business market?
a. An attitude of the company’s CEO
b. The geographic location of the company
c. The lifestyle of the company’s buying agent
d. Net income generated by the company
e. Common opinions of the company’s employees
96. Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International
Paper Inc. segments its market based on:
a. customer size.
b. psychographics.
c. demographics.
d. use of product.
e. geographic location.
Chapter 5 – Target Markets: Segmentation and Evaluation
97. Bethlehem Steel Corp. provides steel for a variety of uses to its various customers. Customers have different needs
for the steel and thus Bethlehem has to prepare the raw steel differently depending on how customers will use it in
their production processes. The primary business segmentation variable in this example is:
a. geographic location.
b. customer size.
c. product use.
d. customer importance.
e. organization classification.
98. After an organization has determined which of the many segmentation variables it will use, the next Step in the
target market selection process is:
a. evaluating each of the relevant market segments.
b. selecting the specific target markets.
c. reviewing the appropriate marketing strategy.
d. analyzing the interaction between segmentation variables.
e. developing market segment profiles.
Chapter 5 – Target Markets: Segmentation and Evaluation
99. _____ describe the similarities among potential customers within a market segment and explain the differences
among people in different market segments.
a. Market segmentation variables
b. Market segment profiles
c. Segmentation grids
d. Market differentiation indexes
e. Market concentrations
100. Yvonne and Garret are looking at information about how their organization’s products could fit potential customers’
needs. This information deals with demographic characteristics, product benefits sought, lifestyles, geographic
factors, brand preferences, and usage rates. They are most likely looking at:
a. the sales force survey results.
b. the results of sales forecasting.
c. a market trend analysis.
d. a market segmentation discrimination analysis.
e. a market segment profile.
Chapter 5 – Target Markets: Segmentation and Evaluation
101. The total amount of a product that customers will purchase within a specified period at a specific level of industry-
wide marketing activity is the _____.
a. competitor sales potential
b. sales objective
c. forecasted sales
d. company sales potential
e. market potential
102. The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is
the _____.
a. sales forecast
b. market potential
c. company sales potential
d. company sales objective
e. market share goal
Chapter 5 – Target Markets: Segmentation and Evaluation
103. General Electric Corp calculates that the total number of light bulbs sold to consumers in the next year by all light
bulb producers is 1 billion, given anticipated marketing efforts by the firms involved. This figure represents the
industry’s:
a. sales potential.
b. market potential.
c. target growth rate.
d. sales forecast.
e. sales objective.
104. If Baskin-Robbins calculates that it could sell up to 25 percent of all ice cream cones sold in the United States, this
percentage would represent the ice cream marketer’s _____.
a. target growth rate
b. sales forecast
c. sales objective
d. company sales potential
e. market potential
Chapter 5 – Target Markets: Segmentation and Evaluation
105. Using the breakdown approach to sales potential, estimates are made:
a. by referring to specific geographic factors.
b. by establishing levels of marketing effort that will be required to achieve specific levels of sales.
c. without reference to industry marketing efforts.
d. without reference to general economic conditions.
e. by starting with general economic conditions.
106. Nathan, the manager at a local recreational vehicle store, Off-Road Rage, believes the next two years will be
difficult because of an economic recession. Using this forecast, he determines the effect on the industry’s market
potential and then estimates how his company’s potential sales will look based on this outlook. This manager is using
a _____ approach to estimate sales potential.
a. breakdown
b. recessionary
c. buildup
d. pyramid
e. dimensional
Chapter 5 – Target Markets: Segmentation and Evaluation
107. Alex Wren of Owens Corning Fiberglass Corp talks to Terry Jones, a homebuilder, to find out how much fiberglass
insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total
number of builders in the territory. He is using a _____ approach to measure sales potential.
a. multivariable
b. use of product
c. breakdown
d. regression
e. buildup
108. The buildup approach measure of sales potential:
a. starts with broad estimates of general economic activity.
b. ends with an estimate of a single firm’s sales of a specific product.
c. starts with forecasts about demand for a specific product within a relatively small area.
d. does not use sales estimates.
e. is seldom employed by industrial firms.
Chapter 5 – Target Markets: Segmentation and Evaluation
109. When evaluating market segments, assessment of competitors is important because:
a. it is difficult to segment a market when it has multiple competitors.
b. an absence of competitors usually creates difficulties in accurately measuring segment sales potential.
c. sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that
together have a large share of that segment.
d. a competitive analysis may lead to confusion as to who are the key competitors.
e. competition is generally not a major problem as long as a marketer is aware of it.
110. Estimating the cost of entering a market and focusing on a specific target segment is important because:
a. cost estimates are crucial to assess sales potential accurately.
b. higher costs will keep other potential competitors from entering that particular segment.
c. customers are more likely to be attracted to marketers that invest heavily in the target segment.
d. the organization’s marketers need to know if they can reach the segment at costs equal to or below
competitors’ costs.
e. higher cost generally ensures long-term success.
Chapter 5 – Target Markets: Segmentation and Evaluation
111. The final step in the target market selection process is:
a. implementing the appropriate marketing mix for the target market.
b. evaluating relative market segments.
c. eliminating market segments that are cost prohibitive.
d. selecting specific target markets.
e. revising the final segmentation variables based on target selection.
112. Frito-Lay Snack Foods is currently conducting market segmentation studies. For several segments, they have
completed competitive assessments and cost estimates. The next major step they must take is to:
a. determine which segmentation variables to use.
b. develop market segment profiles.
c. identify the appropriate targeting strategy.
d. select specific target markets.
e. develop sales forecasts.
Chapter 5 – Target Markets: Segmentation and Evaluation
113. Meghan intends to open a house-cleaning business and is considering several market segments. She has identified
four segments for consideration; young urban singles, young married professionals, senior citizens, and college
students. She has just completed an analysis of these four segments by assessing such factors as sales estimates,
competition, and estimated costs. Meghan is now ready for implementing the next step in the target market
selection process, which is to:
a. identify the appropriate targeting strategy.
b. determine which segmentation variables to use.
c. develop market segment profiles.
d. evaluate relevant market segments.
e. select specific target markets.
114. When selecting specific target markets, a firm should:
a. revert to an undifferentiated approach if the market is deemed heterogeneous.
b. choose the segments most in line with the firm’s objectives and long-term growth.
c. choose all segments that are determined to be profitable for the organization.
d. choose the minimum number of segments necessary to achieve company sales potential.
e. pick the segments with the best sales forecasts for the upcoming period of time.
Chapter 5 – Target Markets: Segmentation and Evaluation