56. Magazines like Martha Stewart Living, Better Homes & Gardens, and other magazines targeted to
people who are interested in improving their personal spaces rely on _____ segmentation.
a.
psychographic
b.
demographic
c.
usage rate
d.
geodemographic
e.
family life cycle
57. The James Hardie Siding Company sells concrete siding. It was having little luck targeting contractors
because concrete siding is difficult to install and shows every flaw if a house is incorrectly framed. So
Hardie decided to target homeowners who wanted the security of knowing their siding was guaranteed
not to rot or crack for 50 years. In terms of psychographic segmentation, the siding company used the
_____ variable.
a.
lifestyle
b.
motives
c.
benefits
d.
demographic
e.
personality
58. _____ divides individuals into groups according to the way they spend their time, the importance of
items in their surroundings, their beliefs, and socioeconomic characteristics.
a.
Life-cycle segmentation
b.
Temporal segmentation
c.
Lifestyle segmentation
d.
Microsegmentation
e.
Macrosegmentation
59. _____ is a method that clusters potential customers into neighborhood lifestyle categories and is a
combination of geographic, demographic, and lifestyle segmentation.
a.
Geodemographic segmentation
b.
Microsegmentation
c.
Sociocultural clustering
d.
Acculturation
e.
Lifestyle segmentation
60. In Baton Rouge, Louisiana everyone who is anybody in society can’t wait to get a copy of 225
magazine. The magazine is targeted to the upper middle and upper classes in Baton Rouge and features
articles on how they work and play. The editor of 225 magazine is relying on _____ segmentation.
a.
geodemographic
b.
graphic
c.
benefit
d.
socioeconomic
e.
income
61. What is PRIZM?
a.
a software program for classifying consumers psychographically
b.
a method of dividing the United States into 66 manageable submarkets
c.
a way to identify the importance of ethnic origin to the proposed target market
d.
a software program for storing purchase habit data
e.
the method of market segmentation used by businesses in the service industry
62. Which of the following statements best describes the reason marketers find geodemographic
segmentation so effective?
a.
A bird in the hand is worth two in the bush.
b.
Every action has an opposite and equal reaction.
c.
A rifle is more exact than a shotgun.
d.
Don’t put all of your eggs in one basket.
e.
Birds of a feather flock together.
63. Kraft Foods plans to tailor different ads for different neighborhoods in the same region. For example,
viewers watching a cable show in a Hispanic neighborhood in Chicago would see different ads during
the same commercial breaks as non-Hispanics living in a different neighborhood. Kraft’s strategy best
exemplifies _____ segmentation.
a.
sociocultural
b.
lifestyle
c.
cluster benefit
d.
geodemographic
e.
systematic geographic
64. _____ is the process of grouping customers into market segments according to what is sought from the
product.
a.
Benefit segmentation
b.
Value-added segmentation
c.
Lifestyle segmentation
d.
Macrosegmentation
e.
Psychographic segmentation
65. Heavenly Ham is a ham and sandwich store that stresses in its advertisements that customers should
choose them “when taste matters.” Heavenly Ham uses _____ segmentation.
a.
geographic
b.
demographic
c.
psychographic
d.
benefit
e.
usage rate
66. ThermaCare air-activated heat wraps are meant to be wrapped around sore muscles and joints. The
product is advertised as a powerful pain reliever and a source of deep muscle relaxation. Its soothing
warmth can work at night while you sleep to restore your body. The manufacturer of ThermaCare heat
wraps is using _____ segmentation.
a.
geodemographic
b.
functional
c.
benefit
d.
socioeconomic
e.
feature-based
67. Karry-Lite, the manufacturer of lightweight suitcases with wheels, uses as its slogan, “Takes the ‘lug’
out of luggage.” This slogan illustrates the use of _____ segmentation.
a.
geodemographic
b.
benefit
c.
functional
d.
usage-rate
e.
feature-based
68. There are many furniture manufacturers. Tall Paul’s is the only one that makes furniture to meet the
needs of people who are over 6’6″ tall. These people find furniture designed for average-sized people
to be cramped and uncomfortable. Tall Paul’s uses _____ segmentation.
a.
geodemographic
b.
usage rate
c.
demographic
d.
psychographic
e.
benefit
69. When asked to name a brand of sports drink, most people will answer Gatorade, and some will
respond with Powerade also. But people with diabetes who still need to replenish electrolytes lost
during activity or illness cannot drink these sports drinks because they are high in sugar and thus
cannot be drunk by diabetics. As a result, a manufacturer has developed Champion Lyte, which
contains no sugar. The manufacturer of Champion Lyte has used _____ segmentation to identify its
market.
a.
geodemographic
b.
usage-rate
c.
demographic
d.
psychographic
e.
benefit
70. Private Ears are earphones that a person with limited hearing can use to hear the television without
turning the volume up full blast. That way, other family members with normal hearing can watch the
television at the appropriate volume for them. Private Ears is using _____ segmentation.
a.
usage-rate
b.
demographic
c.
geodemographic
d.
competitive
e.
benefit
71. Which type of segmentation divides a market by the amount of product bought or consumed?
a.
benefit segmentation
b.
characteristic segmentation
c.
usage-rate segmentation
d.
demographic segmentation
e.
psychographic segmentation
72. Most airline frequent flyer programs reward the most frequent flyers with business class upgrades and
flight lounge privileges. Airlines are using these rewards as a means of implementing _____
segmentation.
a.
lifestyle
b.
motive
c.
usage-rate
d.
demographic
e.
personality
73. The public transportation system in the San Francisco area conducted a survey that revealed
respondents could be assigned to one of four categories: (1) people who never utilized mass transit, (2)
people who utilized mass transit in the past but not now, (3) people who utilized mass transit
occasionally, and (4) people who utilized mass transit regularly. These groups have significantly
different perceptions about transportation alternatives. This is an example of _____ segmentation.
a.
demographic
b.
benefit
c.
aggregate
d.
economic
e.
usage-rate
74. A number of plastic surgery groups in Great Britain are making use of loyalty cards. Patients who have
five procedures performed at their offices will receive either a free procedure or a discount off another
more complex surgical procedure. Aimed at patients who get maintenance treatments such as Botox or
regular face peels, the loyalty cards may be used toward any type of surgical procedure. This is an
example of segmentation by:
a.
demographic
b.
benefit
c.
aggregate
d.
economic
e.
usage-rate
75. General Mills offers a deal where its cereal users can collect box tops and submit them to General
Mills to earn money for their children’s schools. This program, called the Box Tops for Education
Program, is a means of changing light users into heavier users. In other words, it is a form of _____
segmentation.
a.
lifestyle
b.
motive
c.
usage-rate
d.
demographic
e.
personality
76. What does the 80/20 principle propose?
a.
Roughly 80 percent of the profit comes from 20 percent of the sales.
b.
Roughly 80 percent of a firm’s customers are repeat business.
c.
Roughly 50 percent of a firm’s customers purchase 80 percent of the sales volume of the
product.
d.
Roughly 20 percent of a firm’s customers purchase 80 percent of the sales volume of the
product.
e.
Sales are equally divided among heavy, medium, and light users, but they all need slightly
different products.
77. The _____ proposes that a minority of a firm’s customers purchase a majority of the volume of the
product.
a.
majority fallacy
b.
equity fallacy
c.
80/20 principle
d.
cannibalization rule
e.
optimizer principle
78. Train collectors Jack McCoy and Sandro Dias have decided to open a store that sells train
memorabilia—everything from toy train sets to full-sized railroad signs. After 18 months in business,
they have noticed most of their sales are to the same small group of customers (about 40 people) even
though they have records to show there are over 200 active train collectors within a 50-mile radius of
their store. Their retailing experience is supportive of the:
a.
optimizer principle
b.
min-max rule
c.
majority fallacy
d.
rule of demand
e.
80/20 principle
79. Business marketers focus on all of the following market segments EXCEPT:
a.
institutions
b.
producers
c.
households
d.
resellers
e.
governments
80. Zatarains offers packaged spice mixes for jambalaya, gumbo, and red beans and rice. Consumers can
buy the product in the store, so Zatarains sells individual household-size packages to resellers. It also
sells institutional-size packages to military bases, schools, restaurants, and other large organizations.
The marketers of Zatarains would most likely segment the business market according to:
a.
company characteristics
b.
the buying process
c.
financial terms
d.
customer relationship objectives
e.
length of distribution channel
81. Tower Fasteners developed a commanding position in the fastener industry by having in stock over
150,000 different types of fasteners. Tower’s primary market is defined as companies with a need for
specialized fasteners. All of the following are characteristics of the buying organization that Tower can
use for segmentation EXCEPT:
a.
psychographic variables
b.
the method the company uses to make purchases
c.
geographic location
d.
personal characteristics of purchase decision makers
e.
company size
82. Firms can be categorized by the type of purchasing strategy they use. _____ usually contact familiar
suppliers and place an order with the first that can meet product and delivery requirements.
a.
Strugglers
b.
Actualizers
c.
Optimizers
d.
Satisficers
e.
Experiencers
83. Hank operates a plumbing and electrical supply store. He has categorized its business customers by
their purchasing strategy. Hank has found it much easier to serve and satisfy the _____, who usually
recontact familiar suppliers and place an order immediately if product and delivery requirements are
acceptable.
a.
adopters
b.
adaptors
c.
optimizers
d.
innovators
e.
satisficers
84. Firms can be categorized by the type of purchasing strategy used. _____ consider numerous, even
unfamiliar suppliers and solicit and analyze options.
a.
Satisficers
b.
Strivers
c.
Optimizers
d.
Actualizers
e.
Innovators
85. The Green Earth, a landscaping company, finds that the most difficult firms to get business from are
the _____ because this group considers numerous, even unfamiliar suppliers, solicits bids, and
carefully analyzes options; therefore, it requires a higher levels of customer service.
a.
actualizers
b.
strivers
c.
satisficers
d.
optimizers
e.
early adopters
86. What is the first step in segmenting a market?
a.
set the segmentation goals
b.
choose a basis or bases for segmenting the market
c.
select a market or product category for study
d.
profile and analyze segments
e.
select target markets
87. All of the following are steps in the market segmenting process EXCEPT:
a.
determine the objectives of the segmentation strategy
b.
profile and analyze segments
c.
design, implement, and maintain appropriate marketing mixes
d.
select a market or product category for study
e.
choose a basis or bases for segmenting the market
88. June LaVista owns a health and fitness gym. After dividing her customers into four segments based on
income range, age, level of fitness, and other selected segmentation descriptors, she wrote out a
description of each segment’s size, expected growth, frequency of exercise, and overall profit potential.
Which step in segmenting a market is LaVista engaged in?
a.
profiling and analyzing her market segments
b.
positioning her products to her market segments
c.
targeting promotions to her market segments
d.
differentiating her market segments
e.
concentrating her marketing mix on the most profitable marketing segments
89. After selecting a market for study and choosing bases for segmenting that market, the next step is to:
a.
choose a basis or bases for segmenting the market
b.
implement and maintain a marketing mix
c.
design a marketing mix
d.
profile and analyze segments
e.
select target markets
90. Thompson Pools installs and maintains swimming pools. They group their customers according to
their needs: new installs, regular maintenance, and frequent product consumers. When do they need a
new segmentation analysis?
a.
Once every 20 years is about average
b.
They should do them regularly because of the rapidly changing nature of most markets
c.
They don’t need any because consumer markets don’t rapidly change and develop like
business goods markets
d.
Every year, using new bases for variety
e.
Only when the market changes
91. Market segmentation:
a.
is a scientific technique for selecting ways to attract specific population samples
b.
is rarely done by consumer products companies
c.
only needs to be done once for each product
d.
should be redone periodically
e.
should be done every time a product enters a new stage of its life cycle
92. A(n) _____ is a group of people or organizations for whom an organization designs, implements, and
maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying
exchanges.
a.
heterogeneous segment
b.
target market
c.
responsive segment
d.
aggregated market
e.
undifferentiated target
93. The debate over gay marriages is causing a great deal of furor, but it has done little to deplete the
importance of the affluent gay market to businesses. Georgia Pacific and Mitchell Gold, a furniture
manufacturer, are two companies that have implemented and maintained marketing mixes designed to
meet the needs of lesbians and gays. To these companies and others, lesbians and gays are a desirable:
a.
market sample
b.
target market
c.
perceived market
d.
functional market
e.
market base
94. Sure Fit, Inc. has begun a rebranding strategy to let customers know it no longer only produces
slipcovers, but now also carries a line of rugs, window treatments, and bedding. Its _____ is described
as women with average annual household income of $60,000 or more.
a.
market audience
b.
market differentiation
c.
perceived market
d.
target market
e.
aggregated market
95. Which target marketing strategy views the market as one big market with no individual segments and
thus uses a single marketing mix?
a.
undifferentiated
b.
concentrated
c.
niche
d.
uniform
e.
multisegmented
96. When Henry Ford first made the model T, he said consumers “can have any color they want as long as
it is black.” This was a case of _____.
a.
repositioning
b.
reengineering
c.
one-to-one marketing
d.
undifferentiated targeting
e.
niche marketing
97. Candace Popwell makes and markets Festive Holiday Truffles candy. The confectionary company
owner views the world as one big market with no individual segments and tries to reach it with only
one marketing mix. Her essentially mass-market philosophy indicates she probably uses a(n) _____
strategy.
a.
multisegment targeting
b.
universal product
c.
concentrated targeting
d.
undifferentiated targeting
e.
product differentiation
98. A(n) _____ strategy entails selecting one segment of a market to target, and focuses on understanding
the needs, motives, and satisfactions of the members of that segment, as well as on developing a highly
specialized marketing mix.
a.
universal product
b.
undifferentiated targeting
c.
concentrated targeting
d.
market development
e.
product development
99. All of the following are advantages of using a concentrated targeting strategy EXCEPT:
a.
concentration of resources
b.
can better meet the needs of a narrowly defined segment
c.
allows some small firms to better compete with larger firms
d.
strong positioning
e.
high cannibalization
100. Tall Paul’s designs and sells household furniture and furnishings to people who are over 6’6″ tall—a
rather small target market. Tall Paul’s uses a(n) _____ targeting strategy.
a.
benefit
b.
undifferentiated
c.
multisegment marketing
d.
universal product code
e.
concentrated
101. When a firm uses a concentrated targeting strategy, it can:
a.
view the total market as receptive to its product
b.
offer a highly specialized marketing mix
c.
reach customers in two or more segments that might otherwise be missed
d.
avoid the danger of putting all resources in one micromarket
e.
concentrate on one generalized product to fit the mass market, maximizing sales volume
102. E&V Bridal Studios, a wedding consulting business, only works with Eastern Asian customers who
want to use their cultural heritage in their wedding ceremonies. What type of segmentation strategy
does the wedding consultant use?
a.
market aggregation
b.
undifferentiated targeting
c.
multisegment marketing
d.
concentrated targeting
e.
limited demand
103. Companies that adopt a concentrated marketing strategy violate which of the following old sayings?
a.
You can’t bake a pie without breaking some eggs.
b.
Don’t count your chickens before they hatch.
c.
Don’t put all of your eggs in one basket.
d.
The grass is always greener on the other side of the fence.
e.
A rolling stone gathers no moss.
104. When a firm serves two or more well-defined market segments with a distinct marketing mix for each,
it is using a(n) _____ targeting strategy.
a.
undifferentiated
b.
concentrated
c.
niche
d.
multisegment
e.
pluralistic
105. Piper Corporation makes aircrafts. It produces several different planes for three categories of customer:
Professional, Personal, and Trainer. What type of targeting strategy is Piper using?
a.
demand positioning
b.
concentrated targeting
c.
undifferentiated targeting
d.
multisegment targeting
e.
market differentiation
106. Stouffer’s offers gourmet entrees for one segment of the frozen dinner market and Lean Cuisine for
another segment that wants both good taste and low calories. When Stouffer’s chose to serve two well-
defined market segments and develop distinct marketing mixes for each, it was implementing a(n)
_____ strategy.
a.
market integration
b.
concentrated targeting
c.
undifferentiated targeting
d.
multisegment targeting
e.
heterogeneous positioning
107. Pharmaceutical firms market many brands of cold remedies with highly similar ingredients. The
primary difference among the brands is their promotions that emphasize that various brands will treat
different symptoms, such as runny noses, headaches, and fever. This is one way to practice:
a.
concentrated segmenting
b.
segment differentiation
c.
multisegment targeting
d.
integrated targeting
e.
multiple-use product marketing
108. With multisegment targeting, a company could benefit from all of the following EXCEPT:
a.
greater sales volume
b.
greater product design and management cost
c.
higher profits
d.
larger market share
e.
economies of scale in manufacturing
109. A potential disadvantage of multisegment targeting is _____, which occurs when sales of a new
product cut into sales of a firm’s existing products.
a.
cannibalization
b.
synergy
c.
positioning
d.
demarketing
e.
inelastic demand
110. _____ is one of the potential disadvantages associated with a multisegment strategy.
a.
Inadequate demand
b.
Demarketing
c.
Lower profits
d.
Cannibalization
e.
Loss of synergy
111. Pharmaceutical firms have introduced new over-the-counter antacids that block the production of
stomach acids while still marketing traditional antacids. Traditional antacids treat heartburn by
neutralizing stomach acid. If sales of the new acid blockers reduce sales of the traditional antacids,
then _____ has occurred.
a.
demarketing
b.
cannibalization
c.
undifferentiation
d.
repositioning
e.
perceptual confusion
112. When Procter & Gamble (P&G) introduced Liquid Tide to a new segment, consumers in the
traditional powdered detergent segment switched to the liquid product. Rather than real sales growth,
P&G simply experienced the shifting of existing customers to a new product. This exemplifies a
drawback of multisegment targeting strategy called:
a.
demarketing
b.
selective perception
c.
undifferentiation
d.
cannibalization
e.
market repositioning
113. Clorox saw sales of its bleach products suffer when it introduced laundry detergents with bleach as an
added ingredient. This is an example of:
a.
demarketing
b.
cannibalization
c.
undifferentiation
d.
repositioning
e.
perceptual confusion
114. An individualized marketing method that utilizes customer information to build long-term,
personalized, and profitable relationships with each customer is referred to as:
a.
80/20 marketing
b.
interpersonal marketing
c.
zoned marketing
d.
one-to-one marketing
e.
individual marketing
115. Mirage Resorts in Las Vegas has a system that allows hotel clerks instantaneous access to a client’s
gambling history to determine what sort of room or complimentary services will provide the guests
with the highest level of service. The resort is practicing:
a.
firewall marketing
b.
one-to-one marketing
c.
an application of the 80/20 rule
d.
transactional marketing
e.
marketing through technology
116. Land’s End offers customers the option of having jeans and other types of pants made to fit them
according to their waist, hip, and leg length measurements. This is an example of:
a.
an application of the 80/20 rule
b.
firewall marketing
c.
one-to-one marketing
d.
transformational marketing
e.
data mining
117. Increasing share of customer means:
a.
selling more products to each customer
b.
increasing the number of customers
c.
winning market share from competitors
d.
the sales due to a customer relative to the costs of attaining and retaining that customer
e.
individual customer revenue minus costs to satisfy that customer
118. The basic goal of one-to–one marketing is to:
a.
increase the market for the product category to new and current customers
b.
eliminate the use of mass media for promotion and locate a direct communications channel
c.
increase operating costs and locate new customers
d.
reduce the number of company employees and increase overall sales
e.
reduce costs through customer retention and increase revenue through customer loyalty
119. All of the following have been identified as trends that will lead to the continuing growth of one-to–
one marketing EXCEPT:
a.
the growing number of customers who do not have time to spend shopping
b.
the fact consumers do not want to be treated like the masses
c.
technology that allows the collection of detailed information on customers
d.
consumers are loyal to companies and brands that have earned their loyalty and reinforce
it at every purchase occasion
e.
mass marketing is no longer appropriate, especially for consumer packaged-goods
products
120. The Ritz Carlton hotel chain is renowned for its service and individual treatment of its customers. All
service staff and employees have note pads and are taught to record every little piece of information
they learn about a customer. If a business traveler ordered soft pillows, only wanted martinis in his
mini bar, and needed access to a fax machine, he would find all of these amenities in his room when he
arrived. The Ritz Carlton is basing its one-to-one marketing on which of the following trends?
a.
the growing number of customers who do not have time to spend shopping
b.
the fact consumers do not want to be treated like the masses
c.
data mining capabilities
d.
the use of reward systems to increase brand loyalty
e.
the growing market for luxury products
121. Product positioning is the process of:
a.
finding the correct location for retail outlets to sell a product category
b.
finding the right channel of distribution for a product
c.
creating the desired image of the firm’s product with respect to its competition
d.
competing with competitors’ products in the retailers’ stores for the best position on the
shelf
e.
pricing the product to be at a competitive level with other brands on the market
122. _____ is the development of a specific marketing mix to influence potential customers’ overall
perception of a brand, product line, or organization in general, and is related to the place a product
occupies in consumers’ minds relative to competing offerings.
a.
Market differentiation
b.
Diversification
c.
Combination marketing
d.
Positioning
e.
Market aggregation
123. Chandler Kumar owns two antique stores. One is in an upscale neighborhood, and its merchandise is
artfully arranged and priced to indicate product rarity. The other is in a run-down strip mall and
contains some of the same type of merchandise, but the items are left in open boxes and placed
haphazardly on shelves. Customers of either store have entirely different perceptions of the stores and
would be surprised to know Kumar operates each of them because he uses such differing _____
strategies.
a.
market integration
b.
segmentation
c.
targeting
d.
positioning
e.
market combination
124. The place a product, brand, or group of products occupies in consumers’ minds relative to competing
offerings is referred to as a product’s:
a.
status
b.
equity
c.
frame
d.
role
e.
position
125. Elaine perceives Cadillac automobiles to be for older men, not for young professional women such as
herself. Elaine’s perception represents Cadillac’s _____ in her mind.
a.
status
b.
frame
c.
position
d.
role
e.
equity
126. There are a number of devices that parents can buy to prevent their children from hearing
objectionable language while they watch television. ProtecTV is the only product of its kind that has
an expandable dictionary. Parents can add words and phrases they find offensive, and the additional
words will be deleted from soundtracks and captioning. ProtecTV uses a(n) _____ strategy.
a.
repositioning
b.
demarketing
c.
market integration
d.
undifferentiated targeting
e.
product differentiation
127. Products such as bleaches, aspirin, unleaded regular gasoline, and some soaps are distinguished by
differences, such as brand names, packaging, color, smell, or “secret” additives. With these products,
marketers attempt to convince customers their product is significantly different from the others and
should therefore be demanded over competing brands. These marketers are using:
a.
cannibalization
b.
perceptual mapping
c.
psychographic targeting
d.
integrated marketing
e.
product differentiation