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Indicate whether the statement is true or false.
1. Home Depot introduced a new line of riding lawn mowers. The company decided to focus more on people
living in the suburbs than those in the city because a survey showed the former category to be more inclined
toward gardening. This is an example of a demographic segmentation by Home Depot.
a.
True
b.
False
2. Baby boomers are people born between 1946 and 1964.
a.
True
b.
False
3. As compared to undifferentiated marketing, applying a micromarketing strategy allows companies to reach
larger markets.
a.
True
b.
False
4. Not-for-profit organizations practice market segmentation.
a.
True
b.
False
5. Primary metropolitan statistical areas (PMSAs) are identified within areas of 1-million-plus populations.
a.
True
b.
False
6. Psychographic segmentation is the most common method of market segmentation.
a.
True
b.
False
7. Families, bachelors, and retirees could be considered separate market segments for a company promoting
travel packages.
a.
True
b.
False
8. Concentrated marketing is also known as niche marketing.
a.
True
b.
False
9. The marketing strategy that targets potential customers based on specific occupation or lifestyle is called
micromarketing.
a.
True
b.
False
10. Typically, a single marketing mix strategy attracts all sectors of a market.
a.
True
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b.
False
11. Marketers rarely encounter differences among members of a target group, as they segment potential
consumers into homogeneous groups.
a.
True
b.
False
12. Up & Away Flying Corporation recently began manufacturing private helicopters. If they have a limited
advertising budget, concentrated marketing would be the ideal marketing strategy for this firm.
a.
True
b.
False
13. Since rubber purchased by Goodyear is utilized to manufacture tires that are ultimately used by consumers
for their automobiles, rubber is a consumer product for Goodyear.
a.
True
b.
False
14. Business products contribute directly or indirectly to the production of other goods and services for resale.
a.
True
b.
False
15. A consolidated metropolitan statistical area comprises of two or more primary metropolitan statistical areas.
a.
True
b.
False
16. Members of Generation Y gravitate to activities that provide constant entertainment and immediate
gratification.
a.
True
b.
False
17. Very few residents of a micropolitan statistical area commute outside the area.
a.
True
b.
False
18. The group born between 1968 and 1979, now generally in their early 30s to early 40s are referred to as
Generation Y.
a.
True
b.
False
19. Using AIO statements allows marketing researchers to develop lifestyle profiles.
a.
True
b.
False
20. Micromarketing may cause a company to lose sight of other, larger markets.
a.
True
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b.
False
21. Core based statistical areas (CBSA) are comprised of metropolitan and micropolitan statistical areas.
a.
True
b.
False
22. Detergent packets purchased by a leading laundry service are considered business products.
a.
True
b.
False
23. Niche marketing is best suited for firms that offer highly specialized goods and services.
a.
True
b.
False
24. The market segmentation that is based on the stages of the family lifecycle is a form of demographic
segmentation.
a.
True
b.
False
25. Items can be classified as business products, not because of what they are, but because of how they will be
used.
a.
True
b.
False
26. Geographic indicators such as job growth give useful guidance to marketers, depending on the type of
products they sell.
a.
True
b.
False
27. The target market for a product is the specific segment of consumers most likely to purchase that particular
product.
a.
True
b.
False
28. Automobile manufacturers and food processing companies segment a particular geographic region based on
the same factors.
a.
True
b.
False
29. Buyers in metropolitan statistical areas exhibit social and economic homogeneity.
a.
True
b.
False
30. A metropolitan statistical area (MSA) is a freestanding urban area with a population in the urban center of at
least 50,000 and a total MSA population of 100,000 or more.
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a.
True
b.
False
31. According to Engel’s laws, the percentage of income spent on food increases with increased income.
a.
True
b.
False
32. Asian Americans are an attractive target to marketers as they have the fastest rising income.
a.
True
b.
False
33. A micropolitan statistical area will have at least one urbanized area of 50,000 or more inhabitants.
a.
True
b.
False
34. Products bought by ultimate customers for personal use are known as consumer products.
a.
True
b.
False
35. Competition in the market usually forces firms to adopt a differentiated marketing strategy.
a.
True
b.
False
36. Geographic information systems (GIS) simplify the job of analyzing marketing information by relating data
to their locations.
a.
True
b.
False
37. If a company markets a consumer product, such as toilet paper, in bulk quantities to the entire market, it is
involved in micromarketing.
a.
True
b.
False
38. Kim’s Egg Rolls were being promoted as a dinner item but after a few years the company decided to change
their packaging and advertising to promote the egg rolls as evening snacks. This is an example of repositioning
a product.
a.
True
b.
False
39. Market segmentation attempts to isolate traits that distinguish a certain group of consumers from the overall
market.
a.
True
b.
False
40. Micromarketing can target even individuals.
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a.
True
b.
False
41. Core regions are locations where marketers get majority of their sales.
a.
True
b.
False
42. Psychographic segmentation involves segmenting the consumers on the basis of the benefits they seek from
a product.
a.
True
b.
False
43. Engel observed that the percentage of income spent on household operations and clothing remains constant
even when the household income increases.
a.
True
b.
False
44. Firms can reposition their already successful products in order to gain a greater market share.
a.
True
b.
False
45. Majority-minority counties are places where more than half the population is a single racial or ethnic group
other than non-Hispanic white.
a.
True
b.
False
46. Generation X is very family-oriented, well educated, and optimistic.
a.
True
b.
False
47. Married couples enter the “empty nest” stage once their children start living on their own.
a.
True
b.
False
48. Division of an overall market into homogeneous groups based on their locations constitutes socioeconomic
segmentation.
a.
True
b.
False
49. Raw silk is an example of a consumer product.
a.
True
b.
False
50. Baby Boomers are decreasing in popularity as a market segment due to their declining disposable income.
a.
True
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b.
False
51. Geographic information systems help marketers map out most efficient delivery routes.
a.
True
b.
False
52. During the process of market segmentation, finalizing the marketing strategy and tactics helps firms to
determine the costs of marketing and the expected level of resources it must commit.
a.
True
b.
False
53. Division of the total market into smaller, relatively homogeneous groups is known as market optimization.
a.
True
b.
False
54. Children exert considerable influence over household food purchases.
a.
True
b.
False
55. “For the same dollars that you spend on a no-frills ticket to Los Angeles, fly Business Class with us!” is the
advertising statement issued by FlyHigh Airlines. It represents an attempt by FlyHigh Airlines to position itself
with respect to its competitors.
a.
True
b.
False
56. Consolidated metropolitan statistical areas (CMSA) are limited to the same state, making it difficult for
marketers to tap into similar product-use patterns among populations in neighboring states.
a.
True
b.
False
57. The Asian Americans are currently the largest ethnic minority group in the United States.
a.
True
b.
False
58. Dividing an overall market into homogeneous groups based on gender and age would constitute
demographic segmentation.
a.
True
b.
False
59. Psychographic segmentation divides a population into groups with similar values and lifestyles.
a.
True
b.
False
60. A positioning map provides a valuable tool to help managers position products by graphically illustrating
consumers’ perceptions of competing products within an industry.
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a.
True
b.
False
61. A hotel purchases towels for use in its rooms. In this context, these towels will be considered business
products.
a.
True
b.
False
62. A company that practices differentiated marketing can generate more sales compared to those generated by
undifferentiated marketing.
a.
True
b.
False
63. The Asian American population is more geographically distributed than either Hispanics or African
Americans.
a.
True
b.
False
64. Geographic segmentation is also called socioeconomic segmentation.
a.
True
b.
False
65. The revised VALS system categorizes consumers by their occupations.
a.
True
b.
False
66. Firms often purchase legal services from external consultants. However, as this does not directly contribute
to the firm’s production activities, legal services cannot be considered a business product.
a.
True
b.
False
67. A market includes any person or entity that has the willingness and the purchasing power to buy a product.
a.
True
b.
False
68. Concentrated marketing strategy ties a firm’s growth to a specific market segment.
a.
True
b.
False
69. Targeting a large number of small markets can produce an expensive, complex, and inefficient marketing
strategy.
a.
True
b.
False
70. The 80/20 principle, also called Pareto’s law, states that 80 percent of a product’s revenues come from 20
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percent of its customers.
a.
True
b.
False
71. Once the total market potential has been estimated by a firm, the next step in the market segmentation
process is to forecast the probable market share.
a.
True
b.
False
72. An undifferentiated marketing strategy is more suited for a firm that markets generic products rather than
individual brand names.
a.
True
b.
False
73. Firms must attempt to group consumers according to the presence or absence of those factors that affect
purchase decisions.
a.
True
b.
False
74. Psychographic segmentation helps marketers to gain a sharper insight into consumer purchasing behavior.
a.
True
b.
False
75. A management-driven method for identifying market segments involves asking customers for the product
attributes important to them.
a.
True
b.
False
76. Typically, magazines can be successfully marketed to consumers through mass marketing strategies.
a.
True
b.
False
77. Geographic segmentation provides useful distinctions when regional preferences or needs exist.
a.
True
b.
False
78. Placing a product at a certain point or location within a market in the minds of prospective buyers is known
as market mapping.
a.
True
b.
False
79. The number and size of the market segments chosen by a firm must match its marketing capabilities.
a.
True
b.
False
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80. The first stage in the market segmentation process, after identifying promising segments, is to produce a
forecast of market potential within each segment.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
81. Several leading brands of breakfast cereal have changed the basis on which they try to set their products apart from
competition, shifting from taste to healthful ingredients. It would be accurate to describe this change as:
a.
Differentiated positioning
b.
Homogeneous positioning
c.
Dynamic positioning
d.
Repositioning
e.
Overpositioning
82. Lululemon Athletica, which specializes in athletic wear for women, recently launched a website featuring
Ivivva, a new line of athletic and dance clothing for girls. Based on the information given in this example,
Lululemon Athletica is using _____ segmentation to segment its markets.
a.
geographic
b.
psychographic
c.
demographic
d.
core based
83. Developing a relevant user profile is the first step in the market segmentation process. How are segment
profiles used to identify the typical customer in each segment?
a.
Segment profiles are used to describe differences among members of a market segment, and to
explain similarities among members in separate market segments.
b.
Segment profiles are used to describe differences among members of a market segment, and to
explain differences among members in separate market segments.
c.
Segment profiles are used to describe similarities among members of a market segment, and to
explain similarities among members in separate market segments.
d.
Segment profiles are used to describe preferences among members of a market segment, and to
explain preferences among members in separate market segments.
e.
Segment profiles are used to describe similarities among members of a market segment, and to
explain differences among members in separate market segments.
84. The VALS system will categorize consumers who are influenced by symbols of success as:
a.
action-motivated consumers.
b.
achievement-motivated consumers.
c.
principle-motivated consumers.
d.
self-expression motivated consumers.
85. Cadillac has strategically sought to become known as a prestige brand among 30 to 50 year olds and
routinely uses television advertising to showcase the high quality and luxury attributes of the new models. It
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seeks to use _______ to separate the brand from other US brands and be perceived more similarly to European
models such as Audi and BMW.
a.
positioning
b.
segmentation
c.
an undifferentiated marketing approach
d.
a concentrated strategy
86. _____ are computer systems that help marketers analyze marketing information by assembling, storing,
manipulating, and displaying data by their location.
a.
Core based information systems
b.
Inertial navigation systems (INS)
c.
Geographic information systems (GIS)
d.
Advanced navigation assessment systems
87. Marketers adopt different strategies in order to promote their products in the market. But what is a market?
Select the best definition of market from the choices below.
a.
specific people and organizations likely to buy certain goods and services
b.
people and organizations who regulate the manufacture of goods and services available for purchase
c.
spaces or outlets where goods and services can be purchased
d.
people and organizations with purchasing power, authority, and willingness to buy goods and
services
e.
goods and services that serve both the consumer and business
88. An undifferentiated marketing strategy:
a.
involves developing different marketing mixes for different segments.
b.
benefits from the control and efficiency of short production runs.
c.
is also known as a concentrated marketing strategy.
d.
is efficient from a production point of view.
89. A present-day marketer is reviewing data attempting to differentiate a target group of consumers that meets
the four basic requirements of effective segmentation. One group stands out above the rest, and he will direct
his marketing efforts toward that group. Toward what group will he direct his marketing efforts?
a.
college graduates
b.
minorities
c.
women
d.
pet owners
e.
white males
90. Compared to undifferentiated marketing, the firm that practices differentiated marketing may generally
expect:
a.
less sales by segment.
b.
lower total production costs.
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c.
greater promotional costs.
d.
lower inventory costs.
91. Kyle plans to buy new tires for a car that his family uses for camping trips. These tires are of the same type
like those that are used on General Motors commercial trucks and can be purchased from Industrial Tire
Company. The tires that Kyle will buy for his car can be classified as _____ products.
a.
business
b.
service
c.
MRO
d.
consumer
92. To remain competitive, marketers must accurately gauge their customers and adapt to changing consumer
sentiment. Sometimes this adaptation calls for repositioning a product or service. Why might a product or
service be repositioned?
a.
The marketing and research department is reduced by half due to the economic downturn.
b.
The product or service is considered the best available in the current market.
c.
The company changes its packaging and uses a new slogan.
d.
The product is unpopular and the company ceases production of it.
e.
The company is aiming for a greater share of the current market.
93. Procter and Gamble is seeking to target women aged 18–to–34 to influence their purchasing of shampoo and bath gels.
They selected the television network ABC Family and specifically airs commercials during the “Pretty Little Liars” time
slot. Which criteria of effective segmentation is Procter and Gamble utilizing?
a.
ability to effectively promote to the market segment
b.
the market segment represents measurable purchasing power
c.
the segment matches Procter and Gamble’s marketing capabilities
d.
the segment is sufficiently large to provide good profit potential
94. Socioeconomic market segmentation is another name for _____ segmentation.
a.
product-related
b.
demographic
c.
psychographic
d.
geographic
95. Because consumer needs and purchasing power vary widely, marketers try to identify those factors that
affect the decision to buy and make a good target market. Which important characteristic of a market segment
would make it an attractive target market?
a.
The market segment shares the same age range.
b.
The market segment shows a pattern of growth.
c.
The market segment is employed in the same industry.
d.
The market segment has been adversely affected by economic recession.
e.
The market segment shows wide diversity.
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96. CoreLogix Inc., has segmented the market as per product usage rates. They have also developed the relevant
profile for each of their segments. What would be the next logical step for them in this process of segmentation?
a.
Commit resources in developing one or more segments
b.
Forecast market potential
c.
Forecast probable market share
d.
Design specific marketing strategy
97. Market segmentation is a tool for marketers to use, but its effectiveness depends on four basic requirements.
Three of the requirements for effective market segmentation are as follows: (1) the segment must have
measurable purchasing power and size; (2) marketers must be able to promote and serve the market; (3) the
identified segment must be large enough to bring in a profit. Select the fourth requirement for effective market
segmentation from the choices below.
a.
The marketer must abide by ethical standards.
b.
The identified segment must include an equal number of men and women.
c.
The marketer must be proficient in the use of modern technology.
d.
The identified segment must reflect the company’s mission statement.
e.
The identified segments must match the company’s marketing capabilities.
98. According to the VALS framework, achievement-motivated consumers are influenced by:
a.
symbols of success.
b.
energy levels.
c.
adventure travel.
d.
fun seekers
99. One of the reasons cited by the U.S. Department of Commerce for the trend toward smaller households is:
a.
young people’s tendency to marry early.
b.
the increase in the number of same-sex couples.
c.
the low cost of living.
d.
the frequency of divorce.
100. _____ defines consumer groups according to variables such as gender, age, income, occupation, education,
sexual orientation, household size, and stage in the family lifecycle.
a.
Geographic segmentation
b.
End-use segmentation
c.
Product-based segmentation
d.
Demographic segmentation
101. The revised VALS framework categories consumers by characteristics that correlate with _____.
a.
age
b.
socioeconomic level
c.
purchase behavior
d.
gender
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102. Sustainability has become an important value among individuals in the United States and some believe that
man-made factors such as the increased use of diesel and gasoline in cars has led to global warming. Those
worried about global warming and seeking ways to reduce their carbon footprint and have invested in products
such as solar panels for their homes and electric or hybrid vehicles. What type of segmentation would be most
appropriate for Toyota to utilize in marketing its Prius – a hybrid vehicle?
a.
psychographic
b.
demographic
c.
geographic
d.
benefit
103. Barnes and Noble encourages customers to pay $10 annually to become “members” in a loyalty program
which rewards them by discounting their purchases. Barnes and Noble utilizes the membership program to
analyze customer buying habits and routinely recommends books, magazines or other products which fit their
purchasing profile. What type of marketing is Barnes and Nobles using?
a.
micromarketing
b.
undifferentiated marketing
c.
concentrated marketing
d.
differentiated marketing
104. You have just been promoted to vice president of marketing for your firm. Unlike your predecessor, you
believe the firm can increase its sales in a market by focusing on more than one segment of the market. You
recognize that doing this means your firm will incur higher production costs. Based on this information, which
of the following targeting strategies are you advocating?
a.
a concentrated targeting strategy
b.
an undifferentiated targeting strategy
c.
a broad-based targeting strategy
d.
a differentiated targeting strategy
e.
a heterogeneous targeting strategy
105. There are a number of strategies that you can use to position your company’s technology product in the
mind of the consumer. You decide to focus your advertising campaign on the perception that your product is
what the others aspire to be—the best. Which of the common categories for product positioning are you using to
develop your marketing campaign?
a.
application
b.
usage rate
c.
attributes
d.
product class
e.
product user
106. A _____ marketing strategy focuses on producing several products and pricing, promoting, and distributing
them with several marketing mixes designed to satisfy smaller segments.
a.
mass
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b.
differentiated
c.
societal
d.
demographic
107. Marketers applying a positioning strategy want to:
a.
make their product look as much like the market leader as possible.
b.
emphasize a product’s unique advantages and differentiate it from competitors’ options.
c.
identify the different product attributes desired by different market segments.
d.
target only the loyal users of the product.
108. When firms identify the factors that affect consumers’ purchase decisions and develop strategies and tactics
to appeal to specific types or groups of customers, they are practicing market _________.
a.
segmentation
b.
differentiation
c.
complexity
d.
uniformity
109. A television commercial shows several enthusiastic teens smiling widely and speaking in turn directly to
the camera. Using the featured skincare product has changed their lives! It costs more than what you find in the
corner drugstore, but it is worth every penny! After weeks of trying one product after another, embarrassed by
acne breakouts and shy about socializing with others, now they have clear faces with a healthy-looking glow!
What form of product-related segmentation has driven the development of this marketing campaign?
a.
segmenting by geographic location
b.
segmenting by benefits sought
c.
segmenting by psychographics
d.
segmenting by brand loyalty
e.
segmenting by demographics
110. The tagline used by Blue Jet cleaners, “Pay for Performance,” is an example of a positioning strategy that is
based on _____.
a.
product homogeneity
b.
product users
c.
price/quality
d.
competitors
111. Market segmentation plays a very important role in developing a marketing strategy. Select the best
definition of market segmentation from the choices below.
a.
dividing the total available market into smaller, similar groups
b.
dividing the company profits for distribution among shareholders
c.
dividing the marketing budget that will be used in world markets and in the United States
d.
dividing the workload among marketing department employees
e.
dividing the total market into two distinct groups, the global market and the U.S. market
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112. Oscar Mayer, a maker of various meat products, introduced Lunchables, a product specifically aimed at
children. This is an example of:
a.
undifferentiated marketing.
b.
differentiated marketing.
c.
mass marketing.
d.
micromarketing.
113. The product-related segmentation of consumers based on the strength of their attachment and allegiance to
their preferred products is called _____ segmentation.
a.
values and lifestyles
b.
business-to-business
c.
psychographic
d.
brand loyalty
114. In recent years, consumers have become increasingly concerned about the use of pesticide and other
chemicals in the agricultural industry. Some are worried that the increased use of chemicals has led to higher
incidences of disease such as cancer. Consumers who share these opinions will often purchase products labeled
“organic” and “natural”. Marketers who are utilizing these words on product packaging or in their promotions
are implementing _______ segmentation.
a.
psychographic
b.
benefit
c.
geographic
d.
demographic
115. A _____ is an urbanized county or set of counties with social and economic ties to nearby areas.
a.
consolidated micropolitan statistical area
b.
primary metropolitan statistical area
c.
core based statistical area
d.
consolidated metropolitan statistical area
116. Starbucks recently faced criticism for changing the way consumers could earn free food and beverage in its
loyalty program. Originally, consumers could earn 1 star for each purchase – regardless of dollar value spent.
However, the new program ties the star benefit to the dollar amount spent by a customer – rewarding those who
spend more with more points. The Star program is frequently utilized by Starbucks to entice its members to
return to the outlet. The company utilizes e-mail and in-app promotions to maintain an loyal following. What
type of segmentation is Starbucks utilizing with its Star rewards program?
a.
product-related
b.
demographic
c.
geographic
d.
psychographic
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117. The group born between 1968 and 1979, now generally in their early 30s to early 40s, often are referred to
as _____.
a.
Baby Boomers
b.
teenagers
c.
seniors
d.
Generation X
118. The lumber that a carpenter purchases to make a table for a customer can be classified as a(n):
a.
impulse product.
b.
business product.
c.
consumer good.
d.
final product.
119. Cecile is an avid cook and enjoys spending time in the kitchen as well as watching shows on the Food
Network. She recently remodeled her kitchen and purchased new appliances. Since she enjoys cooking so
much, Cecile purchased a commercial range from a local restaurant supply store and it features double ovens
and 12 burners. Her contractor had to make some modifications to enhance the safety of this stove for use in
her home but no other changes were needed. What type of product is the stove in the context of this example?
a.
consumer
b.
business
c.
shopping
d.
convenience
120. While researching on the idea of opening his own health club, Tom learned that there are 11 million health
club members in the United States, and 90 percent of them are between the ages of 18 and 49. They prefer to
exercise with people of their own gender, and the majority of them are urban dwellers. During the process of
market segmentation, this information is most likely to be used by Tom for:
a.
observational analysis.
b.
marketing research.
c.
forecasting total market potential.
d.
developing a market segment profile.
121. A technology company that makes computers for professional use is trying to segment its customers. The
company asked some professional computer users to evaluate the importance of various computer attributes that
influence their purchase decisions and then used this data to segment the consumers based on similar response
patterns. This is an example of segmentation by:
a.
brand loyalty.
b.
usage rates.
c.
expenditure pattern.
d.
benefits sought.
122. Market segmenting by demographics, also called socioeconomic segmentation, is the most common
method of defining consumer groups. Select the best definition for market segmentation by demographics from
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the choices below.
a.
defining consumer groups based on variables including income and residence in an urban area
b.
defining consumer groups based on variables including brand loyalty, income, and gender
c.
defining consumer groups based on variables including income and residence in a suburban area
d.
defining consumer groups based on variables including income, age, ethnicity, and occupation
e.
defining consumer groups based on variables including age, ethnicity, and brand loyalty
123. Master Cookie Bakers sells customized cookies to restaurants and standardized cookies to individual buyers. The
firm is using:
a.
Undifferentiated marketing, since it only sells cookies
b.
Differentiated marketing, since it sells different products to different markets
c.
Concentrated marketing, since it concentrates only on restaurants and individuals
d.
Micromarketing, since cookies are small
e.
Niche marketing, since cookie buyers are a single niche among buyers of baked goods
124. Which of the following factors sets the upper limit on demand generated by a particular market segment?
a.
Market potential of the segment under analysis
b.
Psychographic characteristics of the population in the segment
c.
Geographic dispersion of potential customers in the market segment
d.
Lifestyle characteristics of the population in the segment
125. Which of the following racial/ethnic minority groups is an attractive target for marketers because of their
fastest-growing income?
a.
Hispanics
b.
Native Americans
c.
African Americans
d.
Asian Americans
126. Engel’s laws state that, as household income increases:
a.
the percentage of income spent on items such as recreation and education increases.
b.
the percentage of income spent for clothing and household operations increases.
c.
the percentage of income spent on medical and personal-care decreases.
d.
the percentage of income spent on food remains constant.
127. Title Nine is a specialty retailer targeting active women with a proprietary mix of apparel designed for
active lifestyles and sports. The company began as a direct marketer – using only catalogs and its website to
generate sales. However, over the years, Title Nine has opened retail outlets across the country. The company
identifies strategic opportunities for new stores based upon the sales generated by current customers in the
potential market area. For example, if Title Nine has a significant number of purchasers in the Boston area,
they will further analyze the market and select a location for a retail outlet. What type of segmentation strategy
is Title Nine utilizing when selecting a market for a new store location?
a.
geographic
b.
demographic
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c.
lifestyle
d.
benefit
128. The four basic determinants of a market-specific segmentation strategy include company resources,
competitors’ strategies, stage in the product lifecycle, and:
a.
product demand.
b.
product homogeneity.
c.
environmental constraints.
d.
organizational efficiencies.
129. Starbucks marketing itself as “premium coffee” beverage retailer is an example of a positioning strategy
based on _____.
a.
product class
b.
product users
c.
product life cycle stage
d.
product homogeneity
130. Market segmentation can help marketers increase their accuracy in reaching the right markets, but it is best
used flexibly with other marketing tools. Choose the statement below that best summarizes the market
segmentation process.
a.
Market segmentation can be applied in both for-profit and nonprofit organizations to determine a
consumer target market.
b.
Market segmentation is accomplished in four steps: it employs user profiles; forecasts the overall
market; estimates the market share; and selects specific target markets.
c.
Market segmentation can be accomplished with many approaches: geographic, demographic;
psychographic, and product-related.
d.
Market segmentation methods can be management-driven, based on management’s observations, or
market-driven, based on customer response.
e.
Market segmentation can be used to calculate a lifetime value for each customer in a segment.
131. The company, Eco Nuts was featured on Shark Tank and has become one of the show’s success stories due
to the growing acceptance of their product as an alternative to traditional laundry detergent. The company
typically targets women, aged 40 to 65 who have total annual household income above $60,000 and are
concerned about sustainability. What step in the market segmentation process has Eco Nuts utilized with this
description?
a.
develop a relevant profile for each segment
b.
forecast market potential
c.
forecast probably market share
d.
select specific market segments
132. _____are those born between 1946 and 1964 and are a popular segment to target because of their numbers
and income levels.
a.
Baby Boomers
Name:
Class:
Date:
b.
Generation X
c.
Generation Y
d.
Tweens
133. Progresso Soup has a line of hearty soups that are promoted to all consumers using a single marketing mix.
The company is utilizing ______ marketing.
a.
undifferentiated
b.
differentiated
c.
concentrated
d.
holistic
134. Jacob is the facility manager for a senior living facility and is responsible for maintaining the facility and
ensuring that it looks its best. He likes to repaint all surfaces in the facility every two years and has an
exclusive contract with Sherwin Williams who supplies the paint and materials. The paint and materials that
Jacob purchases from Sherwin Williams to be utilized in the senior living facility would be classified as _____
products.
a.
business
b.
consumer
c.
durable
d.
shopping
135. The cohort effect describes:
a.
why members of the same psychographic group decide to vote the same way and have a lot of
similarities in their choices.
b.
how Generation X uses its financial power to influence product trends, and gets closely followed by
the marketers.
c.
the effect of demographic characteristics in analyzing purchase habits, product usage rates, and brand
preference.
d.
the tendency of members of a generation to be influenced and bound together by events occurring
during their key formative years.
136. You have just completed an extensive marketing research project designed to determine the potential of a
new service your company is considering launching. Using surveys, polling, face-to-face interviews, and mail-
in questionnaires, you have determined that the consumers who are most inclined to use this new service live in
densely populated urban areas within certain zip codes. What approach to market segmentation should you use?
a.
use psychographic variables to segment the market
b.
use demographic variables to segment the market
c.
use behavior variables to segment the market
d.
use geographic variables to segment the market
e.
use sociocultural variables to segment the market
137. The determination of whether pencils are consumer products or business products is based on:
a.
the purpose for which the pencils are purchased.
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b.
the number of pencils purchased.
c.
the place where the pencils are purchased.
d.
the total price paid for the pencils.
138. Undifferentiated marketing is also called _____.
a.
societal marketing
b.
micro marketing
c.
concentrated marketing
d.
mass marketing
139. A frequent flyer program used by an airline is an example of _____.
a.
segmentation by benefits sought
b.
brand loyalty segmentation
c.
psychographic segmentation
d.
socioeconomic segmentation
140. Which of the following statements is true of differentiated marketing?
a.
A company practicing differentiated marketing attempts to satisfy everyone in the market with one
standard product.
b.
As compared o undifferentiated marketing, differentiated marketing leads to lower inventory and
promotional cost.
c.
Differentiated marketing approach can appeal to a small company that lacks the financial resources
of its competitors.
d.
Differentiated marketing helps a company to diversify and reach new customers.
141. Iron ore and raw cotton are examples of:
a.
personal products.
b.
shopping products.
c.
impulse products.
d.
business products.
142. In the process of market segmentation, once the market potential of the segments has been estimated, the
next step is to:
a.
develop a marketing mix.
b.
develop a relevant profile for each segment.
c.
forecast probable market share.
d.
seek strategies to enter the market.
143. Which of the following factors falls under the resource dimension of the VALS system?
a.
Social attitudes
b.
Primary motivation
c.
Eagerness to buy
Name:
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d.
Political views
144. Which of the following is a psychographic category created by the VALS system that categorizes
consumers by characteristics that correlate with purchase behavior?
a.
Altruists
b.
Achievers
c.
Intimates
d.
Devouts
145. The _____ principle recognizes that a large percentage of a product’s revenue stream is generated by a
relatively small, loyal portion of total customers.
a.
80/20
b.
Pareto
c.
parity
d.
loyalty
146. Which of the following is the largest racial/ethnic minority group in the United States?
a.
African Americans
b.
Native Americans
c.
Asian Americans
d.
Hispanic Americans
147. Which of the following is not one of the motivations used to classify consumers in the VALS framework?
a.
Achievement motivated
b.
Action motivated
c.
Gender motivated
d.
Principle motivated
148. The 80/20 principle states that:
a.
market segmentation succeeds 80 percent of the time and fails the remaining 20 percent of the time.
b.
roughly 80 percent of total product sales come from 20 percent of customers.
c.
nearly 80 percent of the market segment is generally tapped within first 10 years of the introduction
of the product, and 20 percent remains unreached.
d.
80 percent of the market can be segmented, and 20 percent cannot.
149. An urban area that includes two or more primary metropolitan statistical areas (PMSA) is called a _____.
a.
metropolitan statistical area (MSA)
b.
core based micropolitan region (CBMR)
c.
micropolitan statistical area (µSA)
d.
consolidated metropolitan statistical area (CMSA)
150. Segmentation by benefits sought is a product-related segmentation approach that:
Name:
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a.
determines the marketer’s effectiveness in satisfying the consumer.
b.
measures brand loyalty and consumer perception.
c.
re-evaluates customer reactions post-consumption.
d.
focuses on the attributes that people seek in a product.
151. The latest ad of Crest toothpaste says “Crest is a cavity fighter.” This is an example of a positioning
strategy based on:
a.
product price/quality.
b.
product homogeneity.
c.
product application.
d.
product users.
152. The “empty nest” stage in the family lifecycle includes:
a.
young unmarried people.
b.
married couples whose children are living on their own.
c.
married couples with children in their growing years.
d.
newly married couples without children.
153. There are many tools available to a savvy marketer who uses geographic segmentation, including national
population data published by the U.S. government. This statistical data is classified as core based, metropolitan,
micropolitan, primary metropolitan, and consolidated metropolitan. Select the statement below that best reflects
population data published by the federal government.
a.
Most of the U.S. population lives in urban environments, which is also true worldwide.
b.
Most of the U.S. population is evenly distributed over the land surface.
c.
Most of the U.S. population lives in suburban environments, which is also true worldwide.
d.
Statistical data about population began to be collected by the federal government in response to
concerns about overpopulation and damage to the environment.
e.
Statistical data about population began to be collected by the federal government in response to the
mass migration of citizens following Hurricane Katrina.
154. In your regular goods and services consumption activities, you purchase products from the wholesaler for
resale and for use in your store’s daily operations. You also purchase products that you will feature in the gift
baskets you make. On the basis of this information, which of the following best describes the market component
you are part of?
a.
professional
b.
business
c.
consumer
d.
resale
e.
manufacturing
155. Psychographic segmentation divides a population into groups based on:
a.
their use of the product.
Name:
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b.
their income and expenditure patterns.
c.
their geographic location.
d.
their attitudes, values and lifestyles.
156. Psychographic segmentation is not an exact science. While it helps to paint an overall picture of the
psychological motivations of consumers, those motivations are influenced by countless variables, such as
family, occupation, and culture. Select the statement below that gives an accurate description of the effective
use of psychographic segmenting.
a.
Psychographic segmenting is most effective when applied to domestic markets because global
cultures are so varied.
b.
Psychographic segmentation is effective when it helps to match a company’s product offering with
the types of consumers who use its products.
c.
Psychographic segmenting becomes less effective if it links consumer social values with buying
behavior.
d.
AIO statements are the least popular segmenting tool because they present the consumer with an
overwhelming amount of information.
e.
Psychographic segmenting is less effective when it is combined with such other segmenting
approaches as demographic and geographic approaches.
157. Bobby Flay is a popular celebrity chef who is famous for his use of the grill to create his signature dishes.
Recently, Bobby Flay debuted a line of grilling accessories and believes these products will be successful
because he has a loyal following among men aged 30 to 60. What type of segmentation is utilized for this new
line of grilling accessories?
a.
demographic
b.
psychographic
c.
geographic
d.
benefit
158. North Face is a well known brand affiliated with active lifestyles such as backpacking, snow skiing, and
camping. The company’s products are available in a wide number of retail outlets as well as their company-
owned specialty stores. The mix of products sold in the retail outlets varies widely depending on the market
location. For example, stores in Northern California stock technical products suitable for customers who are
avid backpackers, hikers and rock climbers while retailers in the Midwest states offer a greater selection of
apparel. What type of segmentation is reflected by stores carrying the North Face brand?
a.
geographic
b.
age-related
c.
ethnic-related
d.
product-related
159. Goods and services purchased by the ultimate consumer for personal use are called _____ products.
a.
business
b.
primary
c.
consumer
Name:
Class:
Date:
d.
secondary
160. The most common method of market segmentation is:
a.
product based segmentation.
b.
demographic segmentation.
c.
economic segmentation.
d.
psychographic segmentation.
161. The tagline used by Walmart, “Save money. Live better” is an example of a positioning strategy that is
based on _____.
a.
quality
b.
attributes
c.
product users
d.
competitors
162. Which of the following changes is seen as a result of a rise in households with only one person?
a.
Increase in apartment building developments
b.
Decrease in the average size of new cars
c.
Decrease in the marketing of vacations
d.
Increase in single-serve food products
163. June knows that the students who patronize her campus ice cream shop are looking to socialize as much as to
consume a treat. In her advertising, she shows images of customers enjoying each other’s company. June is segmenting
based on:
a.
Usage
b.
Loyalty
c.
80/20 principle
d.
Benefits sought
e.
Pareto’s Law
164. _____ is the largest metropolitan area in the world.
a.
New York
b.
Tokyo
c.
Mexico City
d.
London
165. The division of the total market into smaller, homogenous groups is called _____.
a.
customer aggregation
b.
market capitalization
c.
market segmentation
d.
brand segmentation
166. Japanese automaker, Subaru, generates more than half of its sales in just four states (Alaska, Colorado,
Name:
Class:
Date:
Maine, and Washington). These states constitute Subaru’s:
a.
primary market.
b.
core region.
c.
secondary market.
d.
capital region.
167. The marketing strategy that focuses on producing a single product and marketing it to all customers is
called:
a.
concentrated marketing.
b.
micromarketing.
c.
mass marketing.
d.
differentiated marketing.
168. A firm that divides its customers into homogeneous groups based on their locations is said to be practicing
_____ segmentation.
a.
psychographic
b.
product-based
c.
geographic
d.
demographic
169. Ford Motor Company surveyed 10,000 customers to analyze their needs and preferences in automobiles. At
the end of the survey, respondents were asked to provide demographic information, including age. Responses
concerning preferences were strikingly similar for each group within a specific five-year age range. This result
is an example of the _____ effect.
a.
income
b.
life cycle
c.
cohort
d.
Hafner’s
170. Dell Computer offers a variety of desk top, tablet and laptop computers. One popular product line is Dell’s
Alienware – built for gamers with high speed processors, enhanced memory and special graphics cards. What
marketing principle is Dell utilizing with its Alienware product line?
a.
market segmentation
b.
marketing concept
c.
geographic segmentation
d.
profit-oriented segmentation
171. Which of the following changes in the family lifecycle behavior is noted by researchers in the past decade?
a.
Young unmarried people buying new homes and expensive furnishings
b.
Newly married people cooking almost every meal at home instead of dining out
c.
“Boomerang” children returning home, sometimes with their own families
d.
Parents with a second or subsequent child buying new sets of cribs, changing tables, and so forth
Name:
Class:
Date:
172. “The Millennial Generation” is also known as _____.
a.
the Baby Boomers generation
b.
Generation Next
c.
Generation X
d.
the Tweens generation
173. A consumer goods company segments its markets on the basis of purchase patterns of their customers. The
company groups its consumers who regularly buy their product into heavy, moderate, and light users, and
nonusers. This segmentation approach is an example of _____.
a.
segmentation by benefits sought
b.
geographic segmentation
c.
segmentation by usage rates
d.
distributive segmentation
174. Which of the following products would be the best choice to be marketed using an undifferentiated
marketing strategy?
a.
Luxury automobiles
b.
Healthy snack foods
c.
Table salt
d.
Imported wine
175. Which of the following statements is true regarding micromarketing?
a.
Micromarketing techniques are mostly used by mass marketers.
b.
Micromarketing is more narrowly focused than concentrated marketing.
c.
Micromarketing is also called undifferentiated marketing.
d.
Micromarketing involves producing a single product and marketing it in the same way to all potential
customers.
176. The revised VALS segmentation system categorizes consumers based on _____.
a.
religious affiliations
b.
political views
c.
self-motivation
d.
social values
177. Income is a common demographic variable for segmenting the consumer market, and expenditure patterns
vary with income. Engel’s laws are three general statements based on Ernst Engel’s statistical study of the
impact of changes in household income on consumer spending behavior. These statements were valid over 100
years ago and with a few exceptions, still appear to be valid today. Choose the statement below that best
summarizes Engel’s laws.
a.
As income increases: a smaller percentage is spent on food; the percentage spent on housing and
clothing increases; the percentage spent on other items like recreation remains constant.
b.
As income increases: a larger percentage is spent on food; the percentage spent on housing and
clothing remains constant; the percentage spent on other items like recreation increases.
Name:
Class:
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c.
As income increases: the percentage spent on food remains constant; the percentage spent on housing
and clothing decreases; the percentage spent on other items like recreation increases.
d.
As income increases: a larger percentage is spent on food; the percentage spent on housing and
clothing increases; the percentage spent on other items like recreation remains constant.
e.
As income increases: a smaller percentage is spent on food; the percentage spent on housing and
clothing remains constant; the percentage spent on other items like recreation increases.
178. Before beginning the market segmentation process, a firm should:
a.
select target market segments.
b.
forecast total market potential.
c.
forecast market share.
d.
identify bases for segmenting markets.
179. American Express, a large firm with many financial products, recently introduced two new credit cards
designed for very specific markets: The Knot, for engaged couples, and The Nest, for newlyweds. This is an
example of _____ marketing.
a.
undifferentiated
b.
concentrated
c.
mass
d.
societal
180. Which of the following segmentation approaches is most likely to help marketers quantify aspects of
consumers’ personalities and lifestyles to create goods and services for a target market?
a.
Psychographic segmentation
b.
Demographic segmentation
c.
Geographic segmentation
d.
Product-based segmentation
181. Adrienne has received her first solo assignment since she was hired as a junior marketing researcher for a
national food and beverage distributor. She has been asked to formulate some preliminary ideas about new
product development for coffee products sold in the distributor’s on-premise consumption outlets. She
understands that this assignment is a test to see whether she knows the process. She decides to start with the
basics, adding a twenty-first-century twist. How will Adrienne begin the process of formulating ideas about new
product development?
a.
Adrienne will include a customer questionnaire in a local bulk mail package asking consumers about
their coffee consumption habits and what kind of new coffee products they would like to see.
b.
Adrienne will send online coupons to customers who are Facebook friends or have visited the
company’s website, and ask them to complete a brief online AIO lifestyle survey that inquires about
their activities, interests, and opinions.
c.
Adrienne will telephone retail outlets in the company’s core regions to ask whether they have had any
feedback from customers about what kinds of new coffee products they would like.
d.
Adrienne will mail a brief printed AIO lifestyle survey to retail outlets in their core regions that
inquires about customer activities, interests, and opinions. The survey will be placed in customers’
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bags along with their food purchases.
e.
Adrienne will take a “man on the street” poll at the nearest retail outlet and process the feedback from
customers about their coffee consumption habits and what kinds of coffee products they would like to
see.
182. A micropolitan statistical area is an area that:
a.
includes a set a counties within an area of 1-million-plus population.
b.
has a urban center of 50,000 or more inhabitants.
c.
includes two or more primary metropolitan statistical areas.
d.
has at least one town of 10,000 to 49,999 people.
183. Placing a product at a certain point or location within a market in the minds of prospective buyers is known
as _____.
a.
positioning
b.
social referencing
c.
value engineering
d.
optimizing
184. A young single person setting up an apartment for the first time is most likely to be a good prospect for:
a.
expensive furnishings.
b.
luxury cars, personalized gifts and power tools.
c.
small home appliances such as coffee makers and toasters.
d.
health care products and insurance policies.
185. You want to encourage your longtime customers to continue their relationship with the service your
company provides, and so you implement an approach commonly used to segment a market by brand loyalty.
What approach did you use?
a.
Praedo’s law
b.
multiple segmentation
c.
benefits segmentation
d.
the 80/20 principle
e.
frequent purchase program
186. AIO statements describe which of the following?
a.
Age, interests, and opinions
b.
Activities, interests, and opinions
c.
Activities, interpersonal relationships, and opinions
d.
Aptitude, intelligence, and opinions
187. Clairol offers a line of hair color called “Nice n Easy” which allows women to touch-up their hair and
easily cover their gray hairs conveniently and easily at home. Based on research, Clairol knows that women
aged 30 and above are most likely to need some type of color product to hide their gray hair and maintain a
youthful appearance. What type of segmentation does Clairol use by targeting women over 30?
Name:
Class:
Date:
a.
demographic
b.
geographic
c.
psychographic
d.
benefit
188. Market segmentation has interested you ever since your first marketing course, and you want to work for the type of
organization that uses this technique. This means you should avoid pursuing a job with:
a.
Retail business organizations
b.
Wholesale business organizations
c.
Not-for-profit organizations
d.
Manufacturing business organizations
e.
You could pursue a job with any of the above, since all would use market segmentation.
189. If a company markets its breakfast cereal to children, it is using _____ segmentation to segment its
markets.
a.
psychographic
b.
demographic
c.
end-use
d.
geographic
190. _____ are goods and services purchased for use either directly or indirectly in the production of other goods and
services for resale.
a.
Impulse goods
b.
Shopping goods
c.
Business products
d.
Unsought products
191. A positioning map:
a.
is used primarily by companies utilizing undifferentiated marketing strategies.
b.
can be used only for already successful products in the market.
c.
shows how consumers view a product relative to competitive products.
d.
outlines how to introduce a new product to the marketplace.
192. The VALS system divides consumers into _____categories.
a.
five
b.
six
c.
seven
d.
eight
193. Bill wants to use VALS to segment the market for his firm’s costly but cutting-edge gaming software. He knows that
his potential customers are likely to be:
a.
Survivors
b.
Gamers
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Class:
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c.
Innovators
d.
Techies
e.
Millennials
194. Five years ago, Joshua spent 28 percent of his $45,000 yearly income on his bachelor apartment. Today,
Joshua is earning $60,000 annually. According to Engel’s laws, the percentage of income he will spend on his
new apartment will be:
a.
more than 70 percent.
b.
the same as it was back then, about 28 percent.
c.
about 50 percent.
d.
less than 10 percent.
195. Which of the following is a basic requirement for effective market segmentation?
a.
The firm must avoid focusing on consumer-dependent variable, such as discretionary income, while
conducting market segmentation.
b.
The market segment must present measurable purchasing power and size.
c.
The company must expand beyond its marketing capabilities to capture those market segments that
have reached the maturity stage in the product life cycle.
d.
The company must target a large number of small market segments so that they can develop effective
strategies to appeal to them.
196. Bose has developed a new high fidelity line of speakers and is attempting to determine the amount of sales
that could be generated by target customers in various segments in order to determine whether or not they
should proceed with introduction of the new speakers. Which step of the marketing segmentation process best
describes this activity?
a.
forecast market potential
b.
forecast probably market share
c.
select specific segments
d.
develop a profile of each segment
197. A junior member of your marketing department has recommended demographic segmentation for your fast food
brand. In a memo, he wrote: “We should be marketing to females who are Hispanic, low-income, unmarried, and have
four or more children.” You express at least one strong concern about this recommendation. What concern(s) do you
express?
a.
Gender is not a demographic segmentation variable.
b.
Ethnicity is not a demographic segmentation variable.
c.
Marital status is not a demographic segmentation variable.
d.
The recommendation could lead to stereotyping and market alienation.
e.
The recommendation is clearly outdated.
198. Places where more than half the population is a single racial or ethnic group other than non-Hispanic white
are called as _____.
a.
minority counties
b.
majority-minority counties
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c.
majority counties
d.
native-majority counties
199. The Fayetteville-Springdale-Rogers region of Arkansas has approximately 340,000 people. Fayetteville is
an urban center and it alone has a population of 60,000. The Fayetteville-Springdale-Rogers region would be
classified as a:
a.
consolidated metropolitan statistical area (CMSA).
b.
primary metropolitan region (PMR).
c.
metropolitan statistical area (MSA).
d.
micropolitan statistical area (µSA).
200. The United States population is increasingly diverse and more companies are recognizing the opportunity
to target the Hispanic population since they are expected to become the dominant ethnic group in the near
future. Which requirement of segmentation does the growing number of Hispanic customers fulfill?
a.
large market segment offering good profit potential
b.
a segment with measurable purchasing power
c.
ability to effectively aim promotional efforts at the segment
d.
ability to match the segment with the firm’s marketing capabilities
201. When a product is used in the production of another good that is destined for resale, the product is
considered as a(n):
a.
consumer product.
b.
business product.
c.
end product.
d.
used product.
202. In the VALS system, action-motivated consumers are those who:
a.
have a set of ideas and morals or principles they live by.
b.
are influenced by symbols of success.
c.
seek physical activity, variety, and adventure.
d.
have high energy level and are eager to buy products.
203. A firm that chooses to target potential customers by zip code, specific occupation, or even lifestyle is said
to be practicing:
a.
mass marketing.
b.
hypermarketing.
c.
micromarketing.
d.
undifferentiated marketing.
204. A company that chooses to focus its efforts on satisfying only one market segment for profit is using a(n)
_____ strategy.
a.
niche marketing
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b.
societal marketing
c.
undifferentiated marketing
d.
mass marketing
205. Marketers must consider the advantages and disadvantages of each marketing strategy as they choose
which one is the best fit for their firm. You have chosen to market your company’s product using a
differentiated marketing strategy. What disadvantage will you face?
a.
Your mass marketing approach may put you out of touch with today’s consumer.
b.
Your marketing costs will be higher and you will have more production processes.
c.
Your direct competition may appeal to your very narrow niche market in a similar manner.
d.
Your firm may lose sight of other larger and more profitable markets.
e.
Your mass marketing approach may not appeal to smaller market segments.
206. Which of the following is utilized to help managers position products by graphically illustrating consumers’
perceptions of competing products within an industry?
a.
positioning map
b.
differentiating map
c.
separation marketing graph
d.
repositioning graph
Indicate one or more answer choices that best complete the statement or answer the question.
207. The Bates Lighting Company has two divisions, business and consumer products. Because of poor profits, it may
downsize the consumer division. This could mean loss of jobs for people involved with the marketing of:
a.
overhead lighting for hospital operating rooms
b.
flashlights for buildings that lose power
c.
designer lighting for furniture showrooms
d.
desk lamps for offices or college dorms
e.
street lights
208. You’ve started a business on your college campus to sell luxurious blue dorm room rugs with the college logo. You
plan to target male freshmen who come from local towns, like the color blue, can afford luxury products, want rugs for
their rooms, and are enthusiastic about boosting the school. You can easily and efficiently promote to all freshmen,
including this segment, with Facebook and other social media tools. But your marketing professor cautions that you may
be unable to meet certain criteria for effective segmentation. Which criteria does she cite?
a.
The segment must present measurable purchasing power and size.
b.
The marketer must be able to promote effectively to the segment.
c.
The segment must be large enough to offer significant profit potential.
d.
The segment must be certified.
e.
Your plan is unlikely to meet any of the criteria for effective segmentation.
209. A marketing consultant just gave a motivational speech to your sales team about the power of geographic
segmentation. Quietly, you tell your boss that the consultant failed to cover all of the geographic factors that are important
to marketers. You cite the following factor(s) she overlooked:
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a.
Residence location within a statistical area
b.
Population migration patterns
c.
Regional product preferences
d.
Household income within a statistical area
e.
Number of statistical reports published on a geographic area
210. In the first part of your presentation to potential investors, you covered the first two steps in the market segmentation
process. In the second part of your presentation, you will need to discuss:
a.
Selection of specific market segments
b.
Forecast of market potential
c.
Forecast of probable market share
d.
Developing relevant profiles for each segment
e.
Developing income measures for each segment
Match each item with the correct statement below.
a.
target market
b.
market segmentation
c.
cohort effect
d.
primary metropolitan statistical area
e.
differentiated marketing
f.
concentrated marketing
g.
micromarketing
h.
positioning map
i.
VALS
j.
AIO statement
k.
core region
l.
consumer product
m.
demographic segmentation
n.
Pareto’s law
o.
psychographic segmentation
p.
geographic information systems
q.
positioning
r.
geographic segmentation
s.
business product
t.
mass marketing
211. A(n) _____ is a specific segment of consumers a firm believes is most likely to buy its goods and services.
212. A product that is purchased for personal use by an ultimate consumer is called a(n) _____.
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213. A product that is purchased for use in the production of other goods and services for resale is called a(n)
_____.
214. The division of the total market into smaller, relatively homogeneous groups is called _____.
215. The practice of dividing an overall market into homogeneous groups based on the location is called _____.
216. A(n) _____ is an urbanized county or set of counties with social and economic ties to nearby areas.
217. A geographic area that generates 40 percent to 80 percent of a company’s sales is called a(n) _____.
218. _____ are computer systems that assemble, store, manipulate, and display data by their location.
219. _____ defines consumer groups according to variables such as gender, age, income, occupation, and stage
in the family lifecycle.
220. The tendency of members of a generation with common characteristics to be influenced and bound together
by significant events occurring during their key formative years is called the _____.
221. The practice of dividing a population into groups having similar attitudes, values, and lifestyles is called
_____.
222. A(n) _____ describes various activities, interests, and respondent’s opinions that allows researchers to
develop lifestyle profiles.
223. _____ is a psychographic segmentation system that divides consumers into eight psychographic categories
based on resources and self-motivation.
224. The 80/20 principle is sometimes referred to as _____.
225. _____ is a strategy that focuses on producing a single product and marketing it to all customers.
226. A firm that promotes numerous products with several marketing mixes designed to satisfy smaller target
segments is said to practice _____.
227. A firm that focuses its efforts on profitably satisfying a single market segment is opting for _____ strategy.
228. _____ is a targeting strategy that targets potential customers at a very basic level, such as by zip code,
specific occupation, or lifestyle.
229. The concept of _____ refers to placing a product at a certain point or location within a market in the minds
of prospective buyers.
230. A(n) _____ is a tool that helps marketers place products in a market by graphically illustrating consumers’
perceptions of competing products within an industry.
231. What are geographic information systems (GIS)? How do they help marketers in analyzing marketing
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information?
232. Explain the VALS segmentation system.
233. What is family lifecycle? Why do marketers segment their markets by family lifecycle stages?
234. What is psychographic segmentation? What is the most common method for developing psychographic
profiles of a population?
235. Who are the Baby Boomers? Why do marketers target this segment of the population?
236. Describe the three approaches to product-related segmentation.
237. List out the different categories used by the U.S. government to classify urban data. Give examples.
238. Describe the four basic strategies for reaching target markets.
239. Describe the four stages in the market segmentation process.
240. Define market segmentation. Discuss its role in developing an effective marketing strategy.
241. What are the basic requirements or criteria necessary for effective market segmentation?
242. Describe how psychographic segmentation is a good supplement to segmentation by demographic or
geographic variables.
243. What is the use of psychographic segmentation to marketers?
244. What is a positioning map? Why do marketers reposition their products?
245. Explain how each product listed below can be classified as either a consumer and/or business product.
1.
Shampoo
2.
Steel bars for concrete reinforcement
3.
Lawn mower
4.
Computer
5.
Automobile
246. List out the different positioning approaches followed by marketers. Give an example for each.
247. What is geographic segmentation? How is it useful for marketers?
248. What is cohort effect? What is the current cohort called?
249. State Engel’s laws. How have these laws changed in the recent years?
250. Differentiate between a consumer product and a business product. Give examples.
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