37) 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
38) 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”
39) 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
40) 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
41) 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”
42) 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
43) 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
44) 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
45) 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.
46) 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
47) 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
48) 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
49) 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
50) 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
51) ________ 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
52) 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
53) 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
54) 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
55) 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.
56) A market segment consists of a group of consumers who share a similar set of needs and
wants.
57) Illustrations of personality segmentation would include culture-oriented, sports-centered, or
outdoor-oriented subsegments.
58) 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.
59) Demographic variables are popular because they are often associated with consumer needs
and wants and they are easy to measure.
60) Life stage defines a person’s age.
61) Members of the same generational cohort share the same major cultural, political, and
economic experiences and have similar outlooks and values.
62) 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.
63) 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.
64) Psychographics is the science of using psychology and demographics to better understand
consumers.
65) The main dimensions of the VALS segmentation framework are consumer motivation and
consumer
resources.
66) Situational factor segmentation variables in the business marketplace include urgency,
specific application, and size of order.
67) The last step in the seven-step marketing segmentation process would be to develop a
marketing-mix strategy reflective of segment positioning strategies.
68) To be useful, market segments must be measurable.
69) The most attractive segment is one in which entry barriers are low and exit barriers are high.
70) A segment is attractive when there are actual or potential substitutes for the product.
71) A segment is unattractive if the company’s suppliers are able to raise prices or reduce
quantity supplied.
72) An attractive niche consists of customers having a distinct set of needs.
73) Companies following a market specialization strategy offer one product to as many markets
as possible.
74) A company is customerized when it is able to respond to individual customers by
customizing its products, services, and messages on a one-to-one basis.
75) All attempts to target marketing to children, minorities, or other special segments are
discriminatory and unethical.
76) Identify the four market segment groups based on brand loyalty status and list what a
company can learn from analyzing the degrees of brand loyalty.
77) Briefly describe the steps in the segmentation process.
78) Briefly describe product specialization and market specialization.
79) Characterize psychographic segmentation.
80) Give an example of how a company might target products to children in an ethical way.