Marketing Management, 14e (Kotler/Keller)
Chapter 8 Identifying Market Segments and Targets
1) Which of the following statements about market segmentation is true?
A) It involves changing the identity of a product, relative to the identity of competing products,
in the collective minds of the target market.
B) It is a process of evaluating each segment’s attractiveness and selecting one or more to enter.
C) It is a process of creating an image or identity of the product in the minds of the target market.
D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs
and wants.
E) It is the quality of how marketers go to market with the goal of optimizing their spending to
achieve good results.
2) Establishing and communicating the distinctive benefit(s) of the company’s market offering,
for each target segment is called ________.
A) market research
B) market positioning
C) marketing effectiveness
D) market segmentation
E) market dominance
3) The process of selecting one or more market segments to enter is called ________.
A) market targeting
B) market dominance
C) market positioning
D) market segmentation
E) market research
4) A ________ consists of a group of customers who share a similar set of needs and wants.
A) vertical marketing system
B) market basket
C) market share
D) market segment
E) market level
5) Hilton Hotels customizes rooms and lobbies according to location. Northeastern hotels are
sleeker and more cosmopolitan. Southwestern hotels are more rustic. This is an example of
________ segmentation.
A) demographic
B) behavioral
C) psychographic
D) geographic
E) cultural
6) When Nike attempts to get close to its customers at the local level by sponsoring local school
teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the
following marketing formats?
A) differentiated marketing
B) affiliate marketing
C) guerrilla marketing
D) affinity marketing
E) grassroots marketing
7) Regardless of the type of segmentation scheme used, the key is adjusting the marketing
program to recognize ________.
A) the level of disposable income earned by the target group
B) customer differences
C) the cost-benefit relationship of narrowing the target market
D) customer complaints
E) saturated markets
8) If a marketer decides to segment a market based on neighborhoods, the marketer will have
chosen the ________ method of segmentation.
A) demographic
B) psychographic
C) geographic
D) cultural
E) behavioral
9) If a marketing manager segments the market into culture-oriented, sports-oriented, or outdoor-
oriented groups, he or she is segmenting on the basis of ________.
A) loyalty status
B) behavioral occasions
C) user status
D) psychographic lifestyle
E) readiness stage
10) Robert is the owner of an automobile manufacturing company. He calls for a board meeting
and tells his directors that he wants to build a car that lets the users experience power and
exhilaration. He tells them that the car must allow his users to soar from 0-60 mph in about 4
seconds. He also adds in that the price of the car must be affordable enough for anybody making
a good salary. In accordance with the given scenario, Robert is trying to segment the market on
the basis of ________.
A) occupation
B) family size
C) benefits
D) nationality
E) user status
11) If a marketing researcher uses such names (categories) as Blue Blood Estates, Winner’s
Circle, Hometown Retired, or Shotguns and Pickups, when doing segmentation research, the
marketing researcher is using ________ clusters.
A) PRIZM
B) behavioral
C) psychographic
D) demographic
E) VALS
12) Pampers divides its market demographically on the basis of ________ into prenatal, new
baby, baby, toddler, and preschooler.
A) life stage
B) gender
C) age
D) income
E) social class
13) According to PRIZM, the ________ cluster is characterized as being in their late forties and
fifties, college-educated, upper-middle-class homeowners that married late, and are still raising
children in comfortable suburban subdivisions and pursuing kid-centered lifestyles.
A) cosmopolitans
B) beltway boomers
C) young digerati
D) winner’s circle
E) old milltowns
14) According to PRIZM, the ________ cluster is characterized by educated, midscale, and
multiethnic, urbane couples in America’s fast-growing cities. Concentrated in a handful of
metros such as Las
Vegas, Miami, and Albuquerque, these households feature older home owners, empty nesters,
and college graduates.
A) beltway boomers
B) old milltowns
C) cosmopolitans
D) young digerati
E) winner’s circle
15) According to PRIZM, the ________ cluster is characterized as the nation’s tech-savvy
singles and couples, living in areas typically filled with trendy apartments and condos, fitness
clubs and clothing boutiques, casual restaurants, and all types of bars-from juice to coffee to
microbrew.
A) beltway boomers
B) old milltowns
C) young digerati
D) cosmopolitans
E) winner’s circle
16) According to PRIZM, the ________ cluster is characterized by retired singles and couples,
living on downscaled incomes in pre-1960 homes and apartments, who enjoy gardening, sewing,
socializing at veterans clubs, and eating out at casual restaurants.
A) old milltowns
B) young digerati
C) winner’s circle
D) beltway boomers
E) cosmopolitans
17) Those who favor localized marketing see national advertising as wasteful because ________.
A) it gets too up close and personal with consumers
B) it drives up manufacturing and marketing costs by reducing economies of scale
C) it magnifies logistical problems
D) it fails to address local needs
E) it sends conflicting marketing messages
18) Newlyweds in the United States buy more in the first six months than an established
household does in five years. Newlyweds are an example of a(n) ________ segment.
A) life stage
B) age
C) behavior
D) user status
E) income
19) Jose and Erika have just divorced. Which of the following demographic segmentation
subsegment formats might be used by marketers to reach Jose or Erika?
A) life stage
B) benefits
C) age segment
D) personality type
E) social class
20) ________ are products such as Kiehl’s skin care and Kendall-Jackson wines that are priced
between average middle-market and superpremium old luxury brands and are also based on
emotions.
A) Old Luxury brand extensions
B) Accessible superpremium products
C) Luxury items
D) Hourglass products
E) Masstige goods
21) ________ are products such as the Mercedes Benz C-class and the American Express Blue
card, that
extend historically high-priced brands down-market while retaining their cachet.
A) Hourglass products
B) Mass market products
C) Old Luxury brand extensions
D) Masstige goods
E) Accessible superpremium products
22) Which of the following statements about Gen Yers is true?
A) They are selective, confident, and impatient.
B) They are more likely to associate retirement with “the beginning of the end”.
C) They are more pragmatic and individualistic.
D) They were born between 1964 and 1978.
E) They were the first generation to find surpassing their parents’ standard of living a serious
challenge.
23) Rock band Foo Fighters created a digital street team that sends targeted e-mail messages to
members who receive exclusive news, previews, and opportunities to win prizes. The Foo
Fighters are using ________ to reach Generation Y.
A) student ambassadors
B) unconventional sports
C) cool events
D) computer games
E) online buzz
24) If a marketing manager employs such marketing techniques as online buzz, student
ambassadors, cool events, and street teams to reach target markets, the manager is most likely
appealing to the ________ market.
A) Generation Z
B) Generation X
C) Generation Y
D) Silent generation
E) Baby boomers
25) As part of an antismoking crusade, the American Legacy Foundation hires teens as the
“Truth Squad” to hand out T-shirts, bandanas, and dog tags at teen-targeted events. The
American Legacy Foundation is using ________ to reach Generation Y.
A) computer games
B) street teams
C) unconventional sports
D) online buzz
E) videos
26) Which of the following statements about Gen Xers is true?
A) Gen Xers are more optimistic and team-oriented.
B) Gen Xers are selective, confident, and impatient.
C) Gen Xers are highly socially conscious and concerned about environmental issues.
D) Gen Xers feel self-sufficiency and the ability to handle any circumstance are key.
E) Technology is a barrier for Gen Xers.
27) Which of the following statements accurately describes what demographers are calling the
“boom-boom effect”?
A) consumers are demanding more “bang for their buck”
B) Baby boomers still rule the marketplace
C) Generation Y and their concern about environmental issues will dominate the market in the
future
D) products that appeal to 21-year-olds also appeal to baby boomers
E) companies must gain success quickly
28) ________ is the science of using psychology and demographics to better understand
consumers.
A) Psychographics
B) Interactionism
C) Clustering
D) Demographic transition
E) Customerization
29) According to the VALS segmentation system, ________ are successful, sophisticated, active,
“take-charge” people with high self-esteem. Their purchases often reflect cultivated tastes for
relatively upscale, niche-oriented products and services.
A) innovators
B) thinkers
C) achievers
D) experiencers
E) believers
30) According to the VALS segmentation system, ________ are successful, goal-oriented people
who focus on career and family. They favor premium products that demonstrate success to their
peers.
A) thinkers
B) innovators
C) achievers
D) believers
E) experiencers
31) According to the VALS segmentation framework, consumers primarily motivated by ideals
are guided by ________.
A) knowledge
B) social activity
C) products that demonstrate success to their peers
D) variety
E) risk
32) Kim is a young professional who enjoys snowboarding and going to rock concerts with her
friends. According to the VALS eight-part typology segmentation system, Kim is best described
as a(n) ________.
A) thinker
B) achiever
C) experiencer
D) striver
E) survivor
33) Mature and reflective people who seek durability, functionality, and value in products are
most likely to be categorized as ________ in the VALS system.
A) innovators
B) thinkers
C) achievers
D) experiencers
E) strivers
34) A hardware store is interested in reaching people who are characterized by the VALS system
as being practical, down-to-earth, and self-sufficient, who like to work with their hands, or the
________ category.
A) believers
B) strivers
C) survivors
D) experiencers
E) makers
35) According to the VALS segmentation system, ________ are considered to be elderly,
passive people who are concerned about change and are loyal to their favorite brands.
A) believers
B) strivers
C) makers
D) survivors
E) experiencers
36) According to the VALS segmentation system, ________ are considered to be trendy and fun–
loving people who are resource-constrained. They favor stylish products that emulate the
purchases of those with greater material wealth.
A) strivers
B) survivors
C) experiencers
D) makers
E) believers
37) According to the VALS segmentation system, ________ are conservative, conventional, and
traditional
people with concrete beliefs. They prefer familiar, U.S.-made products and are loyal to
established brands.
A) survivors
B) strivers
C) believers
D) makers
E) innovators
38) Dennis requests his father to buy him a PlayStation® for his birthday. With respect to
consumer decision roles, which role is Dennis currently playing?
A) initiator
B) influencer
C) decider
D) buyer
E) gatekeeper
39) The key to attracting potential users, or even possibly nonusers, is ________.
A) understanding the reasons they are not using
B) offering financial incentives for first-time use
C) increasing the usage rate of existing users
D) developing a new product that better meets their needs
E) increasing advertising expenditures
40) The sale of turkeys in the United States is highest in mid-to late November, as people buy
turkeys to serve at Thanksgiving. Grocery stores who specifically advertise turkeys at this time
of year are segmenting on the basis of ________.
A) benefits
B) user status
C) buyer-readiness stage
D) demographics
E) occasion
41) Linda was buying all her groceries from Home Needs supermarket for the past 5 years. She
recently
came across The Convenience Store, another supermarket just a few miles away from her place
and started buying her groceries from them. Linda can be best described as ________.
A) a split loyal
B) an antiloyal
C) a shifting loyal
D) a hard-core loyal
E) a switcher
42) When Amy goes shopping for clothes, she goes into every store in the mall looking for the
best deal. She
is very price conscious. On the basis of loyalty status, Amy can be described as ________.
A) a switchcer
B) a split loyal
C) a shifting loyal
D) a hard-core loyal
E) an antiloyal
43) Mothers-to-be are potential users who will turn into heavy users of infant products and
services. By targeting mothers-to-be as future heavy users, producers of these products and
services are segmenting consumers on the basis of ________.
A) attitude
B) buyer-readiness stage
C) loyalty status
D) user status
E) benefits
44) If a buyer is loyal to two or three different brands of soap, this buyer’s loyalty status can be
described as being among the ________.
A) switchers
B) shifting loyals
C) split loyals
D) hard-core loyals
E) antiloyals
45) Pete always buys Purina dog food for his dog because he believes that it is the best value for
the nutritional content. Pete’s loyalty status is best described as ________.
A) split loyal
B) shifting loyal
C) consistent loyal
D) hard-core loyal
E) switcher
46) A company can learn a great deal by analyzing the degrees of brand loyalty. For example,
________ can show the firm which brands are most competitive with its own.
A) hard-core loyals
B) split loyals
C) shifting loyals
D) switchers
E) antiloyals
47) A company can learn a great deal by analyzing the degrees of brand loyalty. For example,
________ can
help identify the products’ strengths.
A) switchers
B) split loyals
C) antiloyals
D) shifting loyals
E) hard-core loyals
48) If a marketer is seeking to segment a business market, which of the following variables is
generally felt to be the most important?
A) personal characteristics
B) demographic variables
C) situational factors
D) operating variables
E) purchasing approaches
49) In segmenting its markets, an aluminum company first looked at which end-use market to
serve: automobile, residential, or beverage containers. This is an example of ________.
A) macrosegmentation
B) microsegmentation
C) geographic segmentation
D) global segmentation
E) short-term segmentation
50) A marketer is interested in segmenting a business market on ________ if the marketer
intends to segment the market based on industries and geographical areas to serve.
A) demographic variables
B) situational factors
C) operating variables
D) purchasing approaches
E) personal characteristics
51) A marketer is interested in segmenting a business market based on urgency of delivery and
the size of the order. Which of the following major segmentation variables would the marketer
most likely use to assist with the task?
A) purchasing approaches
B) situational factors
C) operating variables
D) personal characteristics
E) demographic variables
52) A marketer is interested in segmenting a business market based on technology and customer
capabilities. Which of the following major segmentation variables would the marketer most
likely use to assist with the task?
A) demographic variables
B) purchasing approaches
C) situational factors
D) personal characteristics
E) operating variables
53) A marketer is interested in segmenting a business market on ________ if the marketer
intends to eventually segment the market based on loyalty and attitudes toward risk.
A) situational factors
B) purchasing approaches
C) personal characteristics
D) operating variables
E) demographic variables
54) A marketer interested in segmenting a business market based on ________ intends to
eventually segment the market based on power structure and nature of existing relationship.
A) situational factors
B) purchasing approaches
C) personal characteristics
D) operating variables
E) demographic variables
55) A company can be said to have used ________ if the company distinguished among
customers buying on the basis of price, service, and quality.
A) global segmentation
B) microsegmentation
C) short-term segmentation
D) macrosegmentation
E) geographic segmentation
56) During which step of the segmentation process would the marketer group customers into
segments based on similar needs and benefits sought by the customer in solving a particular
consumption problem?
A) Step 2—segment identification
B) Step 3—segment attractiveness
C) Step 6—segment “acid test”
D) Step 1—needs-based segmentation
E) Step 7—marketing-mix strategy
57) If an organization’s marketing department wished to create “segment storyboards” to test the
attractiveness of each segment’s positioning strategy, this action would most likely occur in the
________ step of the segmentation process.
A) needs-based segmentation
B) segment identification
C) segment profitability
D) segment “acid test”
E) marketing-mix strategy
58) In the ________ step of the market segmentation process, the marketer evaluates the segment
using criteria such as market growth and market access.
A) need-based segmentation
B) segment identification
C) segment attractiveness
D) segment profitability
E) segment “acid test”
59) In the ________ step of the market segmentation process, the marketer determines which
demographics, lifestyles, and usage behaviors make each needs-based segment distinct and
identifiable.
A) segment “acid test”
B) segment attractiveness
C) segment profitability
D) need-based segmentation
E) segment identification
60) A ________ consists of two parts: a naked solution and discretionary options.
A) differentiated market offering
B) flexible market offering
C) rigid market offering
D) vertical market offering
E) horizontal market offering