Global Marketing Management, 8e (Keegan)
Chapter 7 Segmentation, Targeting, and Positioning
1) A market segment is a subset of a larger market of people or organizations who will respond
similarly to a marketing mix.
2) Targeting defines the position of a product or a company in the minds of customers.
3) An advantage of geographic segmentation is that the segments would be close to each other.
4) Demographic segmentation is based on immeasurable or intangible characteristics of
populations.
5) Attitudes and lifestyles are examples of demographic variables.
6) Income is a more important segmentation variable than population in the case of low-priced
products.
7) For most consumer and industrial products, the national literacy rate is the single most
important segmentation variable and indicator of market potential.
8) In the case of psychographic segmentation, data are obtained from secondary sources such as
books and periodicals.
9) According to the psychographic segmentation of Porsche users, Elitists are American Porsche
users who believe that a car, even an expensive one, is not an extension of a person’s personality.
10) According to the psychographic segmentation of Porsche users, Fantasists are American
Porsche users who believe that their cars heighten excitement.
11) According to Backer, Spielvogel & Bates Worldwide’s Target Scan, the Pressured segment is
largely comprised of men.
12) According to Backer, Spielvogel & Bates Worldwide’s Target Scan, Adapters are older
people who maintain their values while keeping open minds when faced with change.
13) Global Scan is a tool for identifying consumer similarities across national boundaries and
consumer differences between segments in different countries.
14) According to D’Arcy Masius Benton & Bowles’s psychographic study in Europe, Successful
Idealists have achieved professional and material success while maintaining commitment to
socially responsible ideals.
15) According to D’Arcy Masius Benton & Bowles’s psychographic study in Europe, Affluent
Materialists are characterized as being content with the comfort of their homes, families, friends,
and community.
16) According to D’Arcy Masius Benton & Bowles’s psychographic study in Russia, “Russian
Souls” theoretically prefer Russian products but look down on mass-produced goods of inferior
quality.
17) According to D’Arcy Masius Benton & Bowles’s psychographic study in Russia, the kuptsy is
most likely to admire automobiles from countries with good reputations for engineering.
18) According to Young & Rubicam’s 4Cs, craftsmen and teachers are included in the
psychographic segment called Transitionals.
19) According to Young & Rubicam’s 4Cs, Mainstreamers are unhappy and ambitious people
with white collar jobs.
20) According to Young & Rubicam’s 4Cs, Succeeders tend to value luxury and quality while
making purchases.
21) Global benefit segmentation focuses on value, which is the denominator of the value
equation.
22) Vertical segmentation is based on product category and price points.
23) Even a narrow segment can be served profitably with a standardized product if the segment
exists in several countries.
24) A market or a market segment characterized by strong competition should ideally be
targeted.
25) Standardized global marketing involves devising a marketing mix to reach a single segment
of the global market.
26) Standardized global marketing is the strategy employed by global companies that define their
markets narrowly.
27) Differentiated global marketing is a variation of concentrated global marketing.
28) Special-interest products are examples of high-tech products.
29) Marketing of high-tech products requires less emphasis on specialized information and more
emphasis on image.
30) ________ is the process of subdividing a market into distinct subsets of customers that
behave in the same way or have similar needs.
A) Market penetration
B) Market liquidity
C) Market segmentation
D) Market capitalization
31) According to Theodore Levitt, “segment simultaneity” refers to a trend wherein ________.
A) the same segments are likely to show up in multiple national markets across the globe
B) hundreds of different segments are likely to show up within a single national market
C) the segments in two different national markets are never likely to have any similarities
D) no two segments within a single national market show similarities in more than a certain
number of attributes
32) ________ is based on measurable characteristics of populations such as age, gender, income,
occupation, and education.
A) Demographic segmentation
B) Geographic segmentation
C) Psychographic segmentation
D) Behavioral segmentation
33) Which of the following is an example of a variable used in demographic segmentation?
A) behavioral characteristics
B) national income
C) attitude
D) lifestyle
34) ________ is the single most important segmentation variable and indicator of market
potential for most consumer and industrial products.
A) Population size
B) Gender
C) National income
D) Age
35) Which of the following is an important demographic variable for the segmentation of low-
priced products?
A) national income
B) population size
C) attitudes
D) lifestyles
36) An international retail giant chooses women between the ages of 17 and 35 in European
countries as the target market for a new line of fashion apparel that it plans to launch soon.
Which of the following types of segmentation is the company using?
A) behavioral segmentation
B) benefit segmentation
C) psychographic segmentation
D) demographic segmentation
37) ________ involves grouping people in terms of their attitudes, values, and lifestyles.
A) Psychographic segmentation
B) Geographic segmentation
C) Demographic segmentation
D) Benefit segmentation
38) Steve is an American Porsche customer who is ambitious, power-driven, and expects to be
noticed by others. He expects to be recognized as an owner of a Porsche. Which of the following
psychographic categories does Steve belong to?
A) Proud Patrons
B) Top Guns
C) Elitists
D) Fantasists
39) Jennifer is the chief financial officer (CFO) of an international bank. She is an American
Porsche customer who considers her car as a reward for having worked hard all her life. She
strongly feels that owning the car is what really matters and not the prestige of owning an
expensive automobile. Which of the following psychographic categories does Jennifer belong to?
A) Top Guns
B) Proud Patrons
C) Fantasists
D) Elitists
40) Which of the following segments labeled by Backer, Spielvogel & Bates Worldwide (BSB)
consists of young people with a median age of 31 who live hectic lives, are driven to achieve
success, and are materialistic pleasure seekers for whom time and money are in short supply?
A) Achievers
B) Traditionals
C) Adapters
D) Strivers
41) Which of the following segments labeled by Backer, Spielvogel & Bates Worldwide (BSB)
consists of customers who are strongly rooted to their pasts and cling to their country’s heritage
and cultural values?
A) Traditionals
B) Achievers
C) Adapters
D) Strivers
42) Which of the following segments labeled by D’Arcy Masius Benton & Bowles (DMBB)
consists of status-conscious and ambitious Europeans, many of whom are business professionals,
who use conspicuous consumption to communicate their success to others?
A) Successful Idealists
B) Comfortable Belongers
C) Affluent Materialists
D) Disaffected Survivors
43) Which of the following segments labeled by D’Arcy Masius Benton & Bowles (DMBB) is
concentrated in high-crime, urban inner-city neighborhoods and tends to be either resentful or
resigned?
A) Affluent Materialists
B) Successful Idealists
C) Disaffected Survivors
D) Comfortable Belongers
44) According to Young & Rubicam’s (Y&R’s) psychographic segmentation study, which of the
following groups of customers is likely to exhibit impulse purchase behavior?
A) Transitionals
B) Aspirers
C) Reformers
D) Mainstreamers
45) According to Y&R’s psychographic segmentation study, which of the following groups of
customers is likely to include managers or professionals who frequently travel and dine out?
A) Transitionals
B) Aspirers
C) Mainstreamers
D) Succeeders
46) ________ involves categorizing consumers in terms of user status and usage rates.
A) Demographic segmentation
B) Benefit segmentation
C) Behavior segmentation
D) Geographic segmentation
47) ________ is the act of evaluating and comparing identified segments and then selecting one
or more of them as the prospect(s) with highest potential.
A) Targeting
B) Positioning
C) Benchmarking
D) Market segmentation
48) Which of the following is a characteristic of standardized global marketing?
A) high production costs
B) limited distribution
C) low sales volume
D) high profitability
49) Which of the following is true of concentrated global marketing?
A) It involves devising a marketing mix to reach multiple segments of the global market.
B) Companies that use it try to attain worldwide depth rather than national breadth.
C) Companies that use it attain lower production costs and greater sales volume.
D) It calls for extensive distribution in the maximum number of retail outlets.
50) ________ refers to the location of a product in the minds of consumers.
A) Positioning
B) Targeting
C) Benchmarking
D) Product displacement
51) Which of the following product categories typically requires high-tech positioning?
A) special-interest products
B) global-village products
C) products that solve a common problem
D) products with universal themes
52) Which of the following is an example of a global-village high-touch product?
A) personal computers
B) Canon cameras
C) designer fashions
D) Fuji bicycles
53) Describe the Target Scan study conducted by Backer Spielvogel & Bates.
54) What are the three basic criteria for assessing opportunity in global target markets?