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d. Commodification
83. Prisly Inc. is a multinational company that specializes in manufacturing and selling high-end cars. It launches a new
car, the Gwen 2.0, that becomes highly successful in the market because of its economical price and excellent features.
However, this leads to a significant decline in the sales of Prisly Inc.’s other cars. This scenario exemplifies _____.
a. segmentation
b. differentiation
c. cannibalization
d. personalization
84. To position a product as being associated with a particular category of products is positioning by:
a. product user.
b. product class.
c. attribute.
d. product differentiation.
85. Which of the following is true of usage-rate segmentation?
a. It combines former users, potential users, first-time users, light or irregular users, medium users, and heavy users.
b. Categories of products do not vary with the product in user-rate segmentation.
c. Heavy users often change their preferences.
d. It groups potential customers on the basis of their personality, motives, and lifestyles.
86. Volten Inc. is an apparel store. It has separate sections for casual wear, office wear, and party wear. It offers a broad
selection of clothing across various price ranges to accommodate consumers at different income levels. In this way,
Volten caters to different socioeconomic groups. Volten targets its market segments using _____ as its base for product
positioning.
a. product class
b. application
c. competitor
d. product user
87. Starlight Jewelry sends Lauren a birthday card along with a pendant as a token of appreciation for shopping frequently
at its store. This trend in customer relationship management aims at cultivating its customers by _____.
a. acknowledging their loyalty
b. implementing technology
c. providing time savings
d. offering standardization
88. The key tool in the marketing strategy of every successful organization for reaching the targeted customer is:
a. planning the marketing strategy.
b. improving marketing premises.
c. market segmentation.
d. market criteria.
89. This group is idealistic and pragmatic and the top brand attributes important to them include trustworthiness,
creativity, intelligence, authenticity, and confidence. Identify this group.
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a. Generation X
b. Teenagers
c. Millennials
d. Generation Z
90. A firm that adopts an undifferentiated targeting strategy assumes that:
a. a market is composed of narrowly defined market segments.
b. small firms can compete effectively with large firms.
c. concentrating all resources on understanding the needs of a single market may lead to cannibalization.
d. individual customers have similar needs that can be met with a common marketing mix.
91. Which of the following is a psychographic segmentation variable?
a. Usage rate of a product
b. Geodemographics
c. Gender
d. Ethnicities
92. Once known as a rugs brand, in 2006 Burberry revamped its product line to reinvent itself as a luxury brand by
harnessing the power of heritage. Which strategy did Burberry use to influence the overall perception of its brand in the
eyes of its old and potential new customers?
a. Positioning
b. Repositioning
c. Perceptual mapping
d. Product differentiation
93. _____ is a means of displaying or graphing, in two or more dimensions, where the products, brands, or groups of
products are located in customers’ minds.
a. Multidimensional scaling
b. Product differentiation
c. Perceptual mapping
d. Product tracing
94. Terra Corp. produces a wide range of furniture, such as cabinets, book cases, and bureaus. It divides its consumer
market into several groups of people who have similar interests in wooden furniture. The strategy of dividing its consumer
market most likely:
a. allows Terra Corp. to meet the markets’ needs with a single marketing mix.
b. enables Terra Corp. to define customer needs and wants more precisely.
c. eliminate the need for developing marketing objectives.
d. allows Terra Corp. to use an undifferentiated targeting strategy.
95. To develop a successful segmentation scheme, marketers gather data about the population within specific geographic
boundaries, the number of people in various age categories, and other social and demographic characteristics. This
example describes which of the four basic criteria used to develop useful segment schemes?
a. Sustainability
b. Identifiability and measurability
c. Responsiveness
d. Accessibility
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96. Mass-marketing efforts will continue to be used by marketers:
a. because consumers have more time to make purchase decisions.
b. to gather detailed information on customers, which is not possible in direct marketing.
c. to remind consumers of a product.
d. because they allow marketers to target customers with extremely relevant offerings.
97. Mr. Shaw wants to buy corporate gifts for his employees. He considers numerous suppliers of corporate gifts, both
familiar and new, solicits bids, and studies all proposals carefully before selecting a supplier. Mr. Shaw’s purchasing
profile could be characterized as a(n) _________.
a. satisficer
b. optimizer
c. venturist
d. close-fisted buyer
98. A concentrated targeting strategy differs from an undifferentiated targeting strategy in that a concentrated targeting
strategy:
a. results in cannibalization of products.
b. involves the selection of a market niche to target the marketing efforts of a firm.
c. views the market as one big market with no individual segments.
d. reduces the production and marketing costs of a firm.
99. Which statement is true of product positioning?
a. It assumes that consumers compare products solely on the basis of price.
b. There are two positioning bases: application and price.
c. The quality of competing products does not influence product positioning.
d. It is a process that influences potential customers’ overall perception of a brand and product line.
100. A marketer who tries to convince consumers that a particular brand is distinctive—and, therefore, they should
demand it—is concerned with which positioning strategy?
a. Product differentiation
b. Product user or class
c. Product repositioning
d. Cannibalization
101. The 80/20 principle holds that 20 percent of all customers generate 80 percent of the demand. Although the
percentages usually are not exact, the general idea often holds true. Which consumer market segment is described here?
a. Benefit segmentation
b. Geographic segmentation
c. Market segmentation
d. Usage-Rate segmentation
102. Which of the following statements is true of a concentrated targeting strategy?
a. It allows a firm to serve two or more well-defined market segments simultaneously.
b. It is often adopted by small firms to compete effectively with much larger firms.
c. It follows a mass-market philosophy by viewing the market as one big market without any individual segments.
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d. It results in cannibalization of products.
103. Which statement is true of market segmentation?
a. It helps marketers design marketing mixes that match the characteristics of one or more segments.
b. It allows marketers to use an undifferentiated targeting strategy.
c. It allows marketers to adopt a single marketing mix across all market segments.
d. It helps marketers focus on satisfying customer needs.
104. Discuss the importance of market segmentation.
105. How do marketers use customer relationship management (CRM) as a targeting tool?
106. What is geographic segmentation? Briefly explain why consumer goods companies take a geographic approach to
marketing.
107. Explain the steps involved in segmenting a market.
108. Explain product differentiation as a positioning strategy used by marketers to distinguish their products from
competitors. Identify some of the bases for positioning that companies use to accomplish this.
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Answer Key
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