A Framework for Marketing Management, 5e (Kotler)
Chapter 7 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 any man 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) 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
14) 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
15) 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
16) 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
17) 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
18) 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 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.
19) ________ is the science of using psychology and demographics to better understand
consumers.
A) Psychographics
B) Interactionism
C) Clustering
D) Demographic transition
E) Customerization
20) 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
21) 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
22) 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
23) 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
24) 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 switcher
B) a split loyal
C) a shifting loyal
D) a hard-core loyal
E) an antiloyal
25) 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
26) 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
27) 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
28) 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
29) 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
30) 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
31) 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
32) 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
33) 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
34) 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
35) 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
36) 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