61) According to the ________ criterion for useful market segments, a segment should be the
largest possible homogenous group worth going after with a tailored marketing program.
A) measurable
B) substantial
C) accessible
D) differentiable
E) actionable
62) Anderson and Mervin have urged marketers to present flexible market offerings to all
members of a segment. A flexible market offering consists of two parts. Which part contains the
product and service elements that all segment members value?
A) naked solution
B) discretionary solution
C) maximum solution
D) pseudo solution
E) virtual solution
63) If your assignment was to create a value proposition and product-price positioning strategy
for each segment, based on the segment’s unique customer needs and characteristics, you would
be in which of the following steps of the segmentation process?
A) needs-based segmentation
B) segment identification
C) segment attractiveness
D) segment positioning
E) segment “acid-test”
64) In evaluating different market segments, the firm must look at two factors: the segment’s
overall attractiveness and ________.
A) the company’s objectives and resources
B) the effectiveness of the suppliers
C) the flexibility of legal rules governing the business
D) the socio-economic infrastructure
E) the global nature of the product
65) To meet the ________ criterion of useful market segments, it must be possible to formulate
effective programs for attracting and serving the segments.
A) measurable
B) substantial
C) accessible
D) differentiable
E) actionable
66) If married and unmarried women respond similarly to a sale on perfume, these hypothetical
segments fail the ________ criterion for useful market segments.
A) measurable
B) substantial
C) accessible
D) differentiable
E) actionable
67) Which of the following statements is true about the five forces identified by Michael Porter,
that
determine the intrinsic long-run attractiveness of a market or market segment?
A) A segment is unattractive if the company’s suppliers are unable to raise prices or reduce
quantity supplied.
B) A segment is unattractive if buyers possess strong or growing bargaining power.
C) A segment is attractive when there are actual or potential substitutes for the product.
D) A segment is attractive if it already contains numerous, strong, or aggressive competitors.
E) The most attractive segment is one in which entry barriers are low and exit barriers are high.
68) In ________ marketing, the firm ignores segment differences and goes after the whole
market with one offer.
A) niche
B) mass
C) guerrilla
D) segmented
E) differentiated
69) If a marketing manager observes that his or her market shows no natural segments and
consumers seem to have roughly the same preferences, the marketing manager will most likely
be faced with a ________ preferences pattern.
A) homogeneous
B) heterogeneous
C) diffused
D) clustered
E) scattered
70) In ________ marketing, the firm operates in several market segments and designs different
products for each segment.
A) individual
B) undifferentiated
C) differentiated
D) concentrated
E) niche
71) General Motors, a leading American multinational automaker, sells cars for every purpose,
purse, and personality. This is an example of ________ marketing.
A) undifferentiated
B) differentiated
C) concentrated
D) niche
E) micro
72) Coca Cola’s original marketing strategy that offered a single drink Coca Cola Classic in a
single sized
bottle with the advertising theme “Coke is it,” is an example of ________ marketing.
A) concentrated
B) niche
C) differentiated
D) micro
E) undifferentiated
73) Marketers usually identify niches by ________.
A) dividing a segment into subsegments
B) conducting VALS tests
C) allowing consumers to gravitate toward product brands
D) examining the demographics section of the handbook of marketing
E) producing products that can be used in a variety of ways
74) ________ combines operationally driven mass customization with customized marketing in a
way that empowers consumers to design the product service offering of their choice.
A) Consumptionism
B) Viral marketing
C) Virtual marketing
D) Regionalization
E) Customerization
75) Volkswagen concentrates on the small-car market and Porsche on the sports car market.
These would be examples of what is called ________.
A) single-segment concentration
B) selective specialization
C) product specialization
D) market specialization
E) full market coverage
76) All of the following are benefits of following the ________ approach to target market
selection: a strong knowledge of the segment’s needs, a strong market presence, operating
economies through specializing in production, distribution, and promotion.
A) single-segment concentration
B) selective specialization
C) product specialization
D) market specialization
E) full market coverage
77) When a symphony orchestra targets people who have broad cultural interests, rather than
only those who regularly attend concerts, the orchestra is targeting ________.
A) market mavens
B) strategic segments
C) supersegments
D) occasion segments
E) psychodemographic segments
78) Which of the following best represents the chief advantage of pursuing a selective
specialization multisegment strategy?
A) It makes the company almost bulletproof to competitors’ actions.
B) It diversifies the firm’s risk.
C) It creates synergy between markets.
D) It is a low-cost strategy.
E) It treats all buyers the same and, therefore, lowers promotion costs.
79) The chief disadvantage to a firm that decides to follow a product specialization strategy in
selecting target markets is that ________.
A) no synergy exists
B) logistics can become a nightmare
C) the product may be supplanted by an entirely new technology
D) competitors can easily copy any new product introductions
E) e-commerce becomes difficult for the company
80) With ________ as a target market strategy, the firm concentrates on serving many needs of a
particular customer group.
A) single-segment concentration
B) selective specialization
C) product specialization
D) market specialization
E) full market coverage
81) Effective target marketing requires that marketers use market segmentation, market
targeting, and market positioning to achieve success in the marketplace.
82) A market segment consists of a group of consumers who share a similar set of needs and
wants.
83) Customer cloning is the practice of identifying the key characteristics of a market segment
and then identifying multiple geographic areas where the majority of the population possesses
those characteristics.
84) Illustrations of personality segmentation would include culture-oriented, sports-centered, or
outdoor-oriented subsegments.
85) Local marketing reflects a growing trend called macromarketing.
86) A local service company has decided to segment its market based on occupation; therefore, it
has chosen a form of demographic segmentation for its approach.
87) Beltway Boomers are the nation’s tech-savvy singles and couples living in fashionable
neighborhoods on the urban fringe.
88) Demographic variables are popular because they are often associated with consumer needs
and wants and they are easy to measure.
89) Life stage defines a person’s age.
90) Income always predicts the best customers for a given product.
91) Members of the same generational cohort share the same major cultural, political, and
economic experiences and have similar outlooks and values.
92) Baby boomers are consumers who have been “wired” almost from birth—playing computer
games, navigating the Web, downloading music, connecting with friends via instant messaging
and mobile phones.
93) Members of Generation Y are generally open to overt branding practices and a “hard sell,”
making product placements in computer and video games a popular way to reach this cohort.
94) Unlike the more optimistic, team-oriented Gen Xers, Gen Yers are more pragmatic and
individualistic.
95) Baby boomers are also less likely to associate retirement with “the beginning of the end” and
see it instead as a new chapter in their lives with new activities, interests, careers, or even
relationships.
96) The norms, language nuances, buying habits, and business practices of multicultural markets
need to be factored into the initial formulation of a marketing strategy, rather than added as an
afterthought.
97) Psychographics is the science of using psychology and demographics to better understand
consumers.
98) People in the same demographic group generally exhibit similar psychographic profiles.
99) The main dimensions of the VALS segmentation framework are consumer motivation and
consumer
resources.
100) In the VALS segmentation system, thinkers are characterized as being successful,
sophisticated, active, “take-charge” people with high self-esteem.
101) Everyone who buys a given product wants the same benefits from it.
102) Believers favor stylish products that emulate the purchases of those with greater material
wealth.
103) Heavy users of a particular product are often a small percentage of the market but account
for a high percentage of total consumption.
104) With respect to loyalty status, if a consumer is loyal to two or three brands, he or she is
called shifting loyal.
105) Hard-core loyals can show the firm which brands are most competitive with its own.
106) Door-to-door workers in a political campaign use attitude to determine how much time to
spend with each voter.