Marketing for Hospitality and Tourism, 8e, Global Edition (Kotler)
Chapter 8 Customer-Driven Marketing Strategy: Creating Value for Target Customers
1) Evaluating each market segment’s attractiveness and selecting one or more of the market
segments to enter is called:
A) Market targeting
B) Market segmentation
C) Market mixing
D) Market positioning
2) The three stages of target marketing are market segmentation, market targeting and:
A) Product introduction
B) Product segmentation
C) Market positioning
D) Mass marketing
3) Dividing buyers into groups based on their knowledge, attitudes, uses or responses to a
product is called:
A) Psychographic segmentation
B) Geographic segmentation
C) Demographic segmentation
D) Behavioristic segmentation
4) Which of the following is a psychographic segmentation variable?
A) Age
B) Organization membership
C) Income
D) Gender
5) Which of the following is NOT a requirement for effective segmentation?
A) Accountability
B) Substantiality
C) Accessibility
D) Measurability
6) In using a(n) ________ marketing strategy, a company ignores market segmentation and goes
after the entire market with one market offer.
A) Differentiated
B) Undifferentiated
C) Unconcentrated
D) Concentrated
7) The increasing fragmentation of the mass market into hundreds of smaller markets is called:
A) Macromarketing
B) Deindividualized marketing
C) Mass-marketing
D) Micromarketing
8) A product’s ________ is the way the product is defined by consumers on important attributes.
A) Differentiation
B) Position
C) Strategy
D) Homogeneity
9) Which of the following is NOT a part of the psychographic variable?
A) Social class
B) Lifestyle
C) Loyalty
D) Personality
10) Which of the following is NOT a demographic variable?
A) Age
B) Gender
C) User status
D) Religion
11) Loyal customers are price ________ compared to brand-shifting patrons.
A) Sensitive
B) Insensitive
C) Economic elastic
D) Economic inelastic
12) The degree to which segments can be assessed and served is the ________ of the market
segment.
A) Measurability
B) Accessibility
C) Substantiality
D) Actionability
13) The degree to which effective programs can be designed for attracting and serving segments
is the ________ of the market segment.
A) Measurability
B) Accessibility
C) Substantiality
D) Actionability
14) Instead of going for a small share of a large market, the firm pursues a large share of one or a
few small markets. This marketing strategy is called:
A) Selective marketing
B) Elective marketing
C) Concentrated marketing
D) Concentric marketing
15) Undifferentiated marketing is more suited for ________ products.
A) Homogeneous
B) Heterogeneous
C) High-priced
D) Low-priced
16) When a firm introduces a new product, it may be practical to launch only one version, so
________ marketing makes the most sense.
A) Undifferentiated or homogeneous
B) Homogeneous or concentrated
C) Undifferentiated or concentrated
D) Differentiated or diluted
17) Which of the following do NOT contribute to a company’s product differentiation efforts?
A) Physical attributes
B) Service
C) Personnel
D) Profitability
18) Dividing a market into groups based on consumers’ knowledge, attitude, use, or response to a
product is called:
A) Market segmentation
B) Psychographic segmentation
C) Market bifurcation
D) Behavioral segmentation
19) Formulating competitive positioning for a product and a detailed marketing mix is called:
A) Market evaluation
B) Market positioning
C) Market targeting
D) Market competitive advantage
20) Under-positioning is defined as:
A) Failing to ever position the company at all
B) Failing to correctly position the company
C) Positioning the company on a level below its par
D) Positioning the company on a level above its par
21) Over-positioning is defined as:
A) Giving buyers a too-broad picture of the company
B) Positioning the company on a level above its par
C) Giving buyers a too-narrow picture of the company
D) Failing to ever position the company at all
22) Offering consumers greater value either through lower prices or by providing more benefits
that justify higher prices, is called:
A) Smart marketing
B) Effective market positioning
C) Bifurcation marketing
D) Competitive advantage
23) All of the following attributes are examples of differences worth establishing EXCEPT:
A) Communicable
B) Important
C) Distinctive
D) Mechanical
24) When competing offers look the same, buyers are not able to differentiate based on company
or brand image.
25) Before choosing the target-market segments, a company must decide on its value
proposition.
26) To an economist, a market is all the buyers and sellers who transact for a good or service.
27) Income and occupation are psychographic segmentation variables.
28) Perceptual maps show consumer perceptions of brands versus competing products across
important attributes.
29) The lodging industry is particularly effective in using income segmentation.
30) The effectiveness of frequent-flyer and frequent-guest programs is clearly enormous.
31) A segment may have desirable size and growth and still not offer attractive profits.
32) Using an undifferentiated marketing strategy, a company ignores market segmentation
differences and goes after the entire market with one market offer.
33) Advertising agencies hired by the company may not like a selected position and may overtly
or covertly work against it.
34) Marketers in hospitality companies need to work to establish images that differentiate their
company from competitors.
35) Actionability is the degree to which the segment’s size and purchasing power can be
measured.
36) Explain the four major segmenting variables for consumer markets.
37) Why do marketers segment the market?
38) Describe the basis for geographic segmentation.
39) What factors might make a segment more or less attractive?
40) What is the one major assumption that marketers, who use an undifferentiated marketing
strategy, have made as they approach their market?