55. _____ segmentation is based on personality, motives, and lifestyle.
a.
Psychographic
b.
Demographic
c.
Benefit
d.
Family life cycle
e.
Character
56. All of the following are bases for psychographic segmentation EXCEPT:
a.
benefits
b.
personality
c.
motives
d.
lifestyles
e.
geodemographics
57. A Small World is a nonprofit retail store that sells gift items made by artisans from over 30 different
countries. This store provides employment to craftspeople in developing nations and markets their
handiwork at a fair price. The store defines its market segment as people who believe in helping others
and who feel good about helping others whenever possible. The store uses _____ segmentation.
a.
demographic
b.
psychographic
c.
geodemographic
d.
ethnic
e.
geographic
58. NASCAR racing fans are some of the most diverse and loyal fans in the world. They will stand in the
pouring rain, the freezing cold, or the blistering heat for hours to shake the hand and get the autograph
of a NASCAR super driver. These fans are not concentrated in any one area, but are dispersed
throughout the United States. A Web site designed to market NASCAR memorabilia would be most
likely to be successful if it used _____ segmentation to determine its target market.
a.
demographic
b.
psychographic
c.
geodemographic
d.
usage rate
e.
family life cycle
59. Wine Spectator is a magazine that targets people who appreciate good wine and food. However, the
discriminating reader of this magazine is also interested in travel and health, so the magazine features
travel and health-related stories. This publication relies on _____ variables to identify its target
market.
a.
psychographic
b.
demographic
c.
usage rate
d.
geodemographic
e.
family life cycle
60. Magazines like Martha Stewart Living, Better Homes & Gardens, and other magazines targeted to
people who are interested in improving their personal spaces rely on _____ segmentation.
a.
psychographic
b.
demographic
c.
usage rate
d.
geodemographic
e.
family life cycle
61. The James Hardie Siding Company sells concrete siding. It was having little luck targeting contractors
because concrete siding is difficult to install and shows every flaw if a house is incorrectly framed. So
Hardie decided to target homeowners who wanted the security of knowing their siding was guaranteed
not to rot or crack for 50 years. In terms of psychographic segmentation, the siding company used the
_____ variable.
a.
lifestyle
b.
motives
c.
benefits
d.
demographic
e.
personality
62. _____ divides individuals into groups according to the way they spend their time, the importance of
items in their surroundings, their beliefs, and socioeconomic characteristics.
a.
Life-cycle segmentation
b.
Temporal segmentation
c.
Lifestyle segmentation
d.
Microsegmentation
e.
Macrosegmentation
63. _____ is a method that clusters potential customers into neighborhood lifestyle categories and is a
combination of geographic, demographic, and lifestyle segmentation.
a.
Geodemographic segmentation
b.
Microsegmentation
c.
Sociocultural clustering
d.
Acculturation
e.
Lifestyle segmentation
64. In Baton Rouge, Louisiana everyone who is anybody in society can’t wait to get a copy of 225
magazine. The magazine is targeted to the upper middle and upper classes in Baton Rouge and features
articles on how they work and play. The editor of 225 magazine is relying on _____ segmentation.
a.
geodemographic
b.
graphic
c.
benefit
d.
socioeconomic
e.
income
65. Which of the following statements best describes the reason marketers find geodemographic
segmentation so effective?
a.
“A bird in the hand is worth two in the bush.”
b.
“Every action has an opposite and equal reaction.”
c.
“A rifle is more exact than a shotgun.”
d.
“Don’t put all of your eggs in one basket.”
e.
“Birds of a feather flock together.”
66. Kraft Foods plans to tailor different ads for different neighborhoods in the same region. For example,
viewers watching a cable show in a Hispanic neighborhood in Chicago would see different ads during
the same commercial breaks as non-Hispanics living in a different neighborhood. Kraft’s strategy best
exemplifies _____ segmentation.
a.
sociocultural
b.
lifestyle
c.
cluster benefit
d.
geodemographics
e.
systematic geographic
67. _____ is the process of grouping customers into market segments according to what is sought from the
product.
a.
Benefit segmentation
b.
Value-added segmentation
c.
Lifestyle segmentation
d.
Macrosegmentation
e.
Psychographic segmentation
68. Miller Lite’s long–running “Great Taste…Less Filling!” advertising campaign was ranked by
Advertising Age magazine as the 8th-best advertising campaign in history. Miller Lite was using _____
segmentation in this ad campaign.
a.
geographic
b.
demographics
c.
psychographics
d.
benefits
e.
usage rate
69. ThermaCare air-activated heat wraps are meant to be wrapped around sore muscles and joints. The
product is advertised as a powerful pain reliever and a source of deep muscle relaxation. Its soothing
warmth can work at night while you sleep to restore your body. The manufacturer of ThermaCare heat
wraps is using _____ segmentation.
a.
geodemographic
b.
functional
c.
benefit
d.
socioeconomic
e.
feature-based
70. Karry-Lite, the manufacturer of lightweight suitcases with wheels, uses as its slogan, “Takes the ‘lug’
out of luggage.” This slogan illustrates the use of _____ segmentation.
a.
geodemographic
b.
benefit
c.
functional
d.
usage-rate
e.
feature-based
71. There are many furniture manufacturers. Tall Paul’s is the only one that makes furniture to meet the
needs of people who are over 6’6” tall. These people find furniture designed for average-sized people
to be cramped and uncomfortable. Tall Paul’s uses _____ segmentation.
a.
geodemographic
b.
usage rate
c.
demographic
d.
psychographic
e.
benefit
72. When asked to name a brand of sports drink, most people will answer Gatorade, and some will
respond with Powerade also. But people with diabetes who still need to replenish electrolytes lost
during activity or illness cannot drink these sports drinks because they are high in sugar and thus
cannot be drunk by diabetics. As a result, a manufacturer has developed Champion Lyte, which
contains no sugar. The manufacturer of Champion Lyte has used _____ segmentation to identify its
market.
a.
geodemographic
b.
usage-rate
c.
demographic
d.
psychographic
e.
benefit
73. Many people find it difficult to peel hard-boiled eggs. Eggies is a kitchen gadget designed to help
make cooking hard boiled eggs quicker and easier. The product allows customers to hard-boil eggs
without the shell. Consumers simply crack an egg, pour it into the plastic “Eggie,” boil, then twist to
enjoy hard-boiled eggs without the messy peeling of the eggshell after they’re done. Eggies is using
_____ segmentation.
a.
usage-rate
b.
demographic
c.
geodemographic
d.
competitive
e.
benefit
74. Which type of segmentation divides a market by the amount of product bought or consumed?
a.
Benefit segmentation
b.
Characteristic segmentation
c.
Usage-rate segmentation
d.
Demographic segmentation
e.
Psychographic segmentation
75. Most airline frequent flyer programs reward the most frequent flyers with business class upgrades and
flight lounge privileges. Airlines are using these rewards as a means of implementing _____
segmentation.
a.
lifestyle
b.
motive
c.
usage-rate
d.
demographic
e.
personality
76. The public transportation system in the San Francisco area conducted a survey that revealed
respondents could be assigned to one of four categories: (1) people who never utilized mass transit, (2)
people who utilized mass transit in the past but not now, (3) people who utilized mass transit
occasionally, and (4) people who utilized mass transit regularly. These groups have significantly
different perceptions about transportation alternatives. This is an example of _____ segmentation.
a.
demographic
b.
benefit
c.
aggregate
d.
economic
e.
usage-rate
77. ThinkGeek is an online retailer that caters to computer enthusiasts and other “geeky” social groups.
Their merchandise includes clothing, electronic and scientific gadgets, unusual computer peripherals,
office toys, pet toys, child toys, and caffeinated drinks and candy. ThinkGeek runs a points-for-reward
system called Geek Points, under which customers can earn rewards for buying more products. This is
an example of segmentation by:
a.
demographic
b.
benefit
c.
aggregate
d.
economic
e.
usage-rate
78. General Mills offers a deal where its cereal users can collect box tops and submit them to General
Mills to earn money for their children’s schools. This program, called the Box Tops for Education
Program, is a means of changing light users into heavier users. In other words, it is a form of _____
segmentation.
a.
lifestyle
b.
motive
c.
usage-rate
d.
demographic
e.
personality
79. What does the 80/20 principle propose?
a.
Roughly 80 percent of the profit comes from 20 percent of the sales.
b.
Roughly 80 percent of a firm’s customers are repeat business.
c.
Roughly 50 percent of a firm’s customers purchase 80 percent of the sales volume of the
product.
d.
Roughly 20 percent of a firm’s customers purchase 80 percent of the sales volume of the
product.
e.
Sales are equally divided among heavy, medium, and light users, but they all need slightly
different products.
80. The _____ proposes that a minority of a firm’s customers purchase a majority of the volume of the
product.
a.
majority fallacy
b.
equity fallacy
c.
80/20 principle
d.
cannibalization rule
e.
optimizer principle
81. Pocket-knife collector Sam Penley decided to open The Knife Depot, a store that sells pocket knives
and related paraphernalia. After 18 months in business, Sam has noticed that most of his sales are to
the same small group of customers (about 40 people) even though he has records to show there are
over 200 active pocket-knife collectors within a 50-mile radius of his store. Sam’s retailing experience
is supportive of the:
a.
optimizer principle
b.
min-max rule
c.
majority fallacy
d.
rule of demand
e.
80/20 principle
82. Business marketers focus on all of the following market segments EXCEPT:
a.
institutions
b.
producers
c.
households
d.
resellers
e.
governments
83. Zatarains offers packaged spice mixes for jambalaya, gumbo, and red beans and rice. Consumers can
buy the product in the store, so Zatarains sells individual household-size packages to resellers. It also
sells institutional-size packages to military bases, schools, restaurants, and other large organizations.
The marketers of Zatarains would most likely segment the business market according to:
a.
company characteristics
b.
the buying process
c.
financial terms
d.
customer relationship objectives
e.
length of distribution channel
84. Tower Fasteners developed a commanding position in the fastener industry by having in stock over
150,000 different types of fasteners. Tower’s primary market is defined as companies with a need for
specialized fasteners. All of the following are characteristics of the buying organization that Tower can
use for segmentation EXCEPT:
a.
psychographic variables
b.
the method the company uses to make purchases
c.
geographic location
d.
personal characteristics of purchase decision makers
e.
company size
85. Firms can be categorized by the type of purchasing strategy they use. _____ usually contact familiar
suppliers and place an order with the first that can meet product and delivery requirements.
a.
Strugglers
b.
Actualizers
c.
Optimizers
d.
Satisficers
e.
Experiencers
86. Hank operates a plumbing and electrical supply store. He has categorized its business customers by
their purchasing strategy. Hank has found it much easier to serve and satisfy the _____, who usually
recontact familiar suppliers and place an order immediately if product and delivery requirements are
acceptable.
a.
adopters
b.
adaptors
c.
optimizers
d.
innovators
e.
satisficers
87. Firms can be categorized by the type of purchasing strategy used. _____ consider numerous, even
unfamiliar suppliers and solicit and analyze options.
a.
Satisficers
b.
Strivers
c.
Optimizers
d.
Actualizers
e.
Innovators
88. The Green Earth, a landscaping company, finds that the most difficult firms to get business from are
the _____ because this group considers numerous, even unfamiliar suppliers, solicits bids, and
carefully analyzes options; therefore, it requires a higher levels of customer service.
a.
actualizers
b.
strivers
c.
satisficers
d.
optimizers
e.
early adopters
89. What is the first step in segmenting a market?
a.
Set the segmentation goals
b.
Choose a basis or bases for segmenting the market
c.
Select a market or product category for study
d.
Profile and analyze segments
e.
Select target markets
90. All of the following are steps in the market segmenting process EXCEPT:
a.
determine the objectives of the segmentation strategy
b.
profile and analyze segments
c.
design, implement, and maintain appropriate marketing mixes
d.
select a market or product category for study
e.
choose a basis or bases for segmenting the market
91. June LaVista owns a health and fitness gym. After dividing her customers into four segments based on
income range, age, level of fitness, and other selected segmentation descriptors, she wrote out a
description of each segment’s size, expected growth, frequency of exercise, and overall profit
potential. Which step in segmenting a market is LaVista engaged in?
a.
Profiling and analyzing her market segments
b.
Positioning her products to her market segments
c.
Targeting promotions to her market segments
d.
Differentiating her market segments
e.
Concentrating her marketing mix on the most profitable marketing segments
92. After selecting a market for study and choosing bases for segmenting that market, marketer must select
the segmentation _____, which identify the specific segmentation variables to use.
a.
descriptors
b.
matrices
c.
narratives
d.
variations
e.
networks
93. Thompson Pools installs and maintains swimming pools. They group their customers according to
their needs: new installs, regular maintenance, and frequent product consumers. When do they need a
new segmentation analysis?
a.
Once every 20 years is about average
b.
They should do them regularly because of the rapidly changing nature of most markets
c.
They don’t need any because consumer markets don’t rapidly change and develop like
business goods markets
d.
Every year, using new bases for variety
e.
Only when the market changes
94. Market segmentation:
a.
is a scientific technique for selecting ways to attract specific population samples
b.
is rarely done by consumer products companies
c.
only needs to be done once for each product
d.
should be redone periodically
e.
should be done every time a product enters a new stage of its life cycle
95. Marketers at Queen City Awning are deciding how much to charge for the company’s new line of
custom-made awnings. In which stage of the market segmentation process is Queen City Awning?
a.
select a market or product category for study
b.
select target markets
c.
design, implement, and maintain appropriate marketing mixes
d.
choose a basis for segmenting the market
e.
profile and analyze segments
96. A(n) _____ is a group of people or organizations for whom an organization designs, implements, and
maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying
exchanges.
a.
heterogeneous segment
b.
target market
c.
responsive segment
d.
aggregated market
e.
undifferentiated target
97. The debate over gay marriages is causing a great deal of furor, but it has done little to deplete the
importance of the affluent gay market to businesses. Georgia Pacific and Mitchell Gold, a furniture
manufacturer, are two companies that have implemented and maintained marketing mixes designed to
meet the needs of lesbians and gays. To these companies and others, lesbians and gays are a desirable:
a.
market sample
b.
target market
c.
perceived market
d.
functional market
e.
market base
98. Sure Fit, Inc. has begun a rebranding strategy to let customers know it no longer only produces
slipcovers, but now also carries a line of rugs, window treatments, and bedding. Its _____ is described
as women with average annual household income of $60,000 or more.
a.
market audience
b.
market differentiation
c.
perceived market
d.
target market
e.
aggregated market
99. Which target marketing strategy views the market as one big market with no individual segments and
thus uses a single marketing mix?
a.
Undifferentiated
b.
Concentrated
c.
Niche
d.
Uniform
e.
Multisegmented
100. When Henry Ford first made the Model T, he said consumers “can have any color they want as long as
it is black.” This was a case of _____.
a.
repositioning
b.
reengineering
c.
one-to-one marketing
d.
undifferentiated targeting
e.
niche marketing
101. Candace Popwell makes and markets Festive Holiday Truffles candy. The confectionary company
owner views the world as one big market with no individual segments and tries to reach it with only
one marketing mix. Her essentially mass-market philosophy indicates she probably uses a(n) _____
strategy.
a.
multisegment targeting
b.
universal product
c.
concentrated targeting
d.
undifferentiated targeting
e.
product differentiation
102. Which of the following is NOT an advantage of an undifferentiated marketing strategy?
a.
effectively protects firm from competition
b.
very cost effective
c.
low complexity
d.
reaches anyone
e.
All of the above are advantages.
103. Which of the following is a potential disadvantages associated with an undifferentiated strategy?
a.
Large competitors may more effectively market to niche segment
b.
Unimaginative product offerings
c.
Segments too small
d.
High costs
e.
Loss of synergy
104. A(n) _____ strategy entails selecting one segment of a market to target, and focuses on understanding
the needs, motives, and satisfactions of the members of that segment, as well as on developing a highly
specialized marketing mix.
a.
universal product
b.
undifferentiated targeting
c.
concentrated targeting
d.
market development
e.
product development
105. One segment of a market is called a:
a.
slice
b.
wedge
c.
pocket
d.
slot
e.
niche
106. All of the following are advantages of using a concentrated targeting strategy EXCEPT:
a.
concentration of resources
b.
can better meet the needs of a narrowly defined segment
c.
allows some small firms to better compete with larger firms
d.
strong positioning
e.
high cannibalization
107. Tall Paul’s designs and sells household furniture and furnishings to people who are over 6’6” tall—a
rather small target market. Tall Paul’s uses a(n) _____ targeting strategy.
a.
benefit
b.
undifferentiated
c.
multisegment marketing
d.
universal product code
e.
concentrated
108. When a firm uses a concentrated targeting strategy, it can:
a.
view the total market as receptive to its product
b.
offer a highly specialized marketing mix
c.
reach customers in two or more segments that might otherwise be missed
d.
avoid the danger of putting all resources in one micromarket
e.
concentrate on one generalized product to fit the mass market, maximizing sales volume
109. E&V Bridal Studios, a wedding consulting business, only works with Eastern Asian customers who
want to use their cultural heritage in their wedding ceremonies. What type of segmentation strategy
does the wedding consultant use?
a.
Market aggregation
b.
Undifferentiated targeting
c.
Multisegment marketing
d.
Concentrated targeting
e.
Limited demand
110. Companies that adopt a concentrated marketing strategy violate which of the following old sayings?
a.
“You can’t bake a pie without breaking some eggs.”
b.
“Don’t count your chickens before they hatch.”
c.
“Don’t put all of your eggs in one basket.”
d.
“The grass is always greener on the other side of the fence.”
e.
“A rolling stone gathers no moss.”
111. When a firm serves two or more well-defined market segments with a distinct marketing mix for each,
it is using a(n) _____ targeting strategy.
a.
undifferentiated
b.
concentrated
c.
niche
d.
multisegment
e.
pluralistic
112. Piper Corporation makes aircrafts. It produces several different planes for three categories of customer:
Professional, Personal, and Trainer. What type of targeting strategy is Piper using?
a.
Demand positioning
b.
Concentrated targeting
c.
Undifferentiated targeting
d.
Multisegment targeting
e.
Market differentiation
113. Stouffer’s offers gourmet entrees for one segment of the frozen dinner market and Lean Cuisine for
another segment that wants both good taste and low calories. When Stouffer’s chose to serve two
well-defined market segments and develop distinct marketing mixes for each, it was implementing
a(n) _____ strategy.
a.
market integration
b.
concentrated targeting
c.
undifferentiated targeting
d.
multisegment targeting
e.
heterogeneous positioning
114. Pharmaceutical firms market many brands of cold remedies with highly similar ingredients. The
primary difference among the brands is their promotions that emphasize that various brands will treat
different symptoms, such as runny noses, headaches, and fever. This is one way to practice:
a.
concentrated segmenting
b.
segment differentiation
c.
multisegment targeting
d.
integrated targeting
e.
multiple-use product marketing
115. With multisegment targeting, a company could benefit from all of the following EXCEPT:
a.
greater sales volume
b.
greater product design and management cost
c.
higher profits
d.
larger market share
e.
economies of scale in manufacturing
116. A potential disadvantage of multisegment targeting is _____, which occurs when sales of a new
product cut into sales of a firm’s existing products.
a.
cannibalization
b.
synergy
c.
positioning
d.
demarketing
e.
inelastic demand
117. _____ is one of the potential disadvantages associated with a multisegment strategy.
a.
Inadequate demand
b.
Demarketing
c.
Lower profits
d.
Cannibalization
e.
Loss of synergy
118. When Coca-Cola introduced Diet Coke, a similar product, this took sales away from original Coke.
This is an example of:
a.
demarketing
b.
cannibalization
c.
undifferentiation
d.
repositioning
e.
perceptual confusion
119. When Procter & Gamble (P&G) introduced Liquid Tide to a new segment, consumers in the
traditional powdered detergent segment switched to the liquid product. Rather than real sales growth,
P&G simply experienced the shifting of existing customers to a new product. This exemplifies a
drawback of multisegment targeting strategy called:
a.
demarketing
b.
selective perception
c.
undifferentiation
d.
cannibalization
e.
market repositioning
120. An individualized marketing method that utilizes customer information to build long-term,
personalized, and profitable relationships with each customer is referred to as:
a.
80/20 marketing
b.
interpersonal marketing
c.
zoned marketing
d.
one-to-one marketing
e.
individual marketing
121. Mirage Resorts in Las Vegas has a system that allows hotel clerks instantaneous access to a client’s
gambling history to determine what sort of room or complimentary services will provide the guests
with the highest level of service. The resort is practicing:
a.
firewall marketing
b.
one-to-one marketing
c.
an application of the 80/20 rule
d.
transactional marketing
e.
marketing through technology
122. Land’s End offers customers the option of having jeans and other types of pants made to fit them
according to their waist, hip, and leg length measurements. This is an example of:
a.
an application of the 80/20 rule
b.
firewall marketing
c.
one-to-one marketing
d.
transformational marketing
e.
data mining
123. Increasing share of customer means:
a.
selling more products to each customer
b.
increasing the number of customers
c.
winning market share from competitors
d.
the sales due to a customer relative to the costs of attaining and retaining that customer
e.
individual customer revenue minus costs to satisfy that customer
124. The basic goal of one-to-one marketing is to:
a.
increase the market for the product category to new and current customers
b.
eliminate the use of mass media for promotion and locate a direct communications channel
c.
increase operating costs and locate new customers
d.
reduce the number of company employees and increase overall sales
e.
reduce costs through customer retention and increase revenue through customer loyalty
125. All of the following have been identified as trends that will lead to the continuing growth of
one-to-one marketing EXCEPT:
a.
the growing number of customers who do not have time to spend shopping
b.
the fact consumers do not want to be treated like the masses
c.
technology that allows the collection of detailed information on customers
d.
consumers are loyal to companies and brands that have earned their loyalty and reinforce
it at every purchase occasion
e.
mass marketing is no longer appropriate, especially for consumer packaged-goods
products
126. The Ritz Carlton hotel chain is renowned for its service and individual treatment of its customers. All
service staff and employees have note pads and are taught to record every little piece of information
they learn about a customer. If a business traveler ordered soft pillows, only wanted martinis in his
mini bar, and needed access to a fax machine, he would find all of these amenities in his room when he
arrived. The Ritz Carlton is basing its one-to-one marketing on which of the following trends?
a.
The growing number of customers who do not have time to spend shopping