Core: Marketing, 8e (Kerin)
Chapter 8 Market Segmentation, Targeting, and Positioning
1) Tony Hsieh’s most important contribution at Zappos was to
A) immediately change its product mix.
B) develop its segmentation strategy.
C) focus on value-oriented customers.
D) focus on unknown brands.
E) shift to a more transactional focus.
2) The primary focus of Zappos’ initial market segmentation strategy was to sell
A) shoes and other products to people who will buy them online and like to use mobile
technology.
B) a wide selection of leather shoes and boots to high-end retailers.
C) all types of shoes, accessories, and clothing to department and fashion discount stores for
reasonable prices.
D) Spanish novelties and accessories to organizations that typically resell them.
E) shoes in its own retail stores to those who prefer face-to-face interaction.
3) Zappos offers value to its customers by
A) offering the best selection of shoes and the best service to online shoppers.
B) designing shoes for every type of occasion.
C) dividing all their customers into two distinct segments: people shopping for low price and
people shopping for style.
D) offering the best access to fashionable shoes through multiple channels of distribution.
E) maintaining the simplest method of pricing to make the purchase process easy.
4) Which of the following statements about Zappos is most accurate?
A) Zappos limits its inventory to a selection of high-end fashion footwear.
B) Zappos makes recommendations for purchases based on past ones and even the device being
used to shop.
C) Zappos can guarantee overnight shipping to all its customers because they know ahead of
time what they will be charged for express service.
D) Zappos is so successful because it has chosen a single mission to “sell shoes and only shoes.”
E) Zappos offers a 30/60/90 return policy whereby refunds are based on how long you had the
shoes.
5) According to Tony Hsieh, CEO of Zappos, the company devotes the greatest amount of time
to
A) seeking new and unusual styles of shoes from all over the world.
B) improving the website to make it faster, more interesting, and fun.
C) seeking new markets that will go beyond the Internet.
D) finding the fastest and least expensive modes of delivery for its products.
E) finding ways to improve customer service levels.
6) Tony Hsieh, CEO of Zappos, offers up to $5,000 to anyone who
A) identifies a completely new market segment with a product to match it.
B) finds a way of improving service to online customers.
C) takes its customer loyalty training class and decides to quit anyway.
D) finds a shoe-related product that Zappos does not already carry.
E) creates a humorous theme for one of the monthly company meetings.
7) Building open and honest relationships with communication is an example of one of Zappos’
A) target markets.
B) best practices being adapted from its new owner, Amazon.com.
C) ten core values.
D) supplier requirements.
E) long-term goals.
8) Aggregating prospective buyers into groups that have common needs and will respond
similarly to a marketing action is referred to as
A) consumer differentiation.
B) psychographics.
C) market segmentation.
D) market delineation.
E) aggregation marketing.
9) Market segmentation refers to
A) the philosophy that to do a truly excellent job of marketing, a company should concentrate on
only one customer segment at a time.
B) sorting prospective buyers into groups that are willing to pay more than the cost of production
for a good or service.
C) disaggregating prospective buyers from groups into segments of one (individuals) and then
creating specific products that will satisfy this person’s unique needs.
D) aggregating prospective buyers into groups that have common needs and will respond
similarly to a marketing action.
E) the belief that it is possible to satisfy every customer’s needs if you can identify the correct
segment within which they belong.
10) Market segmentation involves aggregating prospective buyers into groups that have common
needs and will
A) pay attention to marketing messages.
B) respond similarly to a marketing action.
C) be responsive to marketing research.
D) use the same payment methods.
E) comply with the organization’s core values.
11) New Balance has many offerings. It makes the Minimus line of shoes with a Vibram outsole
and REVlite cushioning for those who want to “feel the trail.” Its 1260v2 shoe incorporates
Stabilicore technology to “deliver a plush, smooth, and stable ride.” And its top of the line,
990v3 traditional running/walking shoe uses a “premium pigskin upper with mesh inserts for
breathability, a stability-enhancing ABZORB insole, and ENCAP to promote a healthy gait.”
The strategy of appealing to different types of customers in this way is an example of
A) mass customization.
B) product definition.
C) market segmentation.
D) single chain marketing.
E) market specific selection.
12) Market segments are
A) the relatively heterogeneous groups of prospective buyers that result from the market
segmentation process.
B) all buyers of a product or service who have previously purchased a particular firm’s products
or services and who intend to repeat that purchase sometime in the future.
C) the smallest number of buyers that have similar needs but do not react similarly in a buying
situation.
D) the relatively homogeneous groups of prospective buyers that result from the market
segmentation process.
E) all potential buyers of a product or service who intend to purchase a firm’s products or
services but who have not yet done so.
13) A relatively homogeneous group of prospective buyers that results from the market
segmentation process is referred to as
A) a market segment.
B) a target market.
C) a customer base.
D) an ultimate consumer.
E) a preferred customer.
14) To be identified as a market segment, members of the group must
A) be similar in terms of their consumption behavior.
B) represent a large share of the entire market and have buying power.
C) have diverse needs and have potential for future growth.
D) have diverse needs and be willing and able to purchase the product.
E) have the potential for future growth and increased profit or ROI.
15) In marketing, each ________ consists of people who are relatively similar to each other in
terms of their consumption behavior.
A) demographic cluster
B) organizational buyer group
C) market segment
D) ultimate consumer group
E) qualified prospect group
16) A marketing strategy that involves a firm using different marketing mix actions to help
consumers perceive the product as being different and better than competing products is referred
to as
A) market penetration.
B) points of difference.
C) market differentiation.
D) product positioning.
E) product differentiation.
17) Product differentiation refers to
A) a good, service, or idea consisting of a bundle of tangible and intangible attributes that
satisfies consumers’ needs.
B) the unique combination of product benefits received by targeted buyers.
C) those characteristics of a product that make it superior to competitive substitutes.
D) a marketing strategy that involves a firm using different marketing mix actions to help
consumers perceive the product as being different and better than competing products.
E) the legal requirement that requires a specified degree of distinction between products to
ensure an organization’s intellectual property rights.
18) Apple’s iPhone X has a feature known as Face ID that lets users securely unlock the phone,
authenticate purchases, or sign in to apps with just a glance. This feature sets the smartphone
apart from its competitors and is part of Apple’s ________ strategy.
A) product segmentation
B) market expansion
C) product differentiation
D) usage segmentation
E) psychographic segmentation
19) Recently Colgate-Palmolive introduced Colgate Enamel Health toothpaste, one that claims to
replenish and polish tooth enamel, the hard outer layer of the tooth that provides a protective
barrier to inner layers. This new formula helps to separate the Colgate product from its top
competitors, such as Crest. What marketing strategy did Colgate-Palmolive use here?
A) product differentiation
B) product segmentation
C) market expansion
D) usage segmentation
E) psychographic segmentation
20) A basic test of the usefulness of the market segmentation process is whether it leads to
tangible marketing actions that can
A) increase sales and profitability.
B) stand up to legal scrutiny.
C) be socially responsible.
D) create sustainable demand.
E) produce product differentiation.
21) The process of segmenting a market and selecting specific segments as targets is the link
between ________ and the organization’s marketing program.
A) self-regulatory industry standards
B) government regulations
C) top-level management
D) buyers’ or market needs
E) controllable environmental factors
22) ________ links market needs to an organization’s marketing program.
A) Market segmentation
B) Product design
C) Marketing protocol
D) Marketing mix development
E) Product selection
23) Zappos’ original target market customers consisted of people who wanted all of the following
except which?
A) to receive quick delivery of their merchandise
B) to buy sustainable shoes, accessories, and clothing
C) to shop online in the convenience of their own homes
D) to return goods for free if dissatisfied
E) to choose from a wide selection of shoes
24) A framework to relate the market segments of potential buyers to products offered or
potential marketing actions by an organization is referred to as a
A) needs table.
B) cross-tabulation.
C) market-product grid.
D) growth-share matrix.
E) product differentiation table.
25) A market-product grid is
A) a visual representation of all products offered within a specific product class.
B) a framework used to compare the relative market share of one firm’s product offerings to
those of its competitors.
C) a technique that seeks opportunities by finding the optimum balance between marketing
efficiencies versus R&D-manufacturing efficiencies.
D) a framework used to relate the market segments of potential buyers to products offered or
potential marketing actions by an organization.
E) a technique that helps a firm search for growth opportunities from among current and new
markets as well as current and new products.
26) A market-product grid is a framework to relate the ________ to products offered or potential
marketing actions by an organization.
A) market segments of potential buyers
B) marketing objectives of potential products
C) total anticipated revenue annually
D) total anticipated profit annually
E) market share of the closest competitor
27) In the segmentation process, pairing side sleepers with firm pillows, back sleepers with
medium pillows, and stomach sleepers with soft pillows would be done with a
A) needs table.
B) cross-tabulation.
C) market-product grid.
D) growth-share matrix.
E) product differentiation table.
Figure 8-2
28) The table in Figure 8-2 is known as a
A) needs table.
B) cross-tabulation.
C) market-product grid.
D) growth-share matrix.
E) product differentiation table.
29) Consider Figure 8-2. My Pillow uses infomercials and product demonstrations at events such
as state fairs to market its line of pillows that are guaranteed to be “the most comfortable pillow
you’ll ever own!” Based on the market research shown in Figure 8-2, which market-product
combination should My Pillow target?
A) stomach sleeper-firm pillow
B) back sleeper-medium pillow
C) side sleeper-firm pillow
D) stomach sleeper-soft pillow
E) side sleeper-soft pillow
30) A business firm goes to the trouble and expense of segmenting its markets when
A) it can comfortably maintain market share.
B) it expects this to result in increased sales and profits.
C) it can also assume social responsibility.
D) the firm’s resources are very scarce.
E) it desires to provide the best quality products on the market.
31) Which of the following statements regarding when and how to segment markets is most
accurate?
A) Even if a firm finds uniform needs across all users, it should take advantage of the method to
avoid falling behind its competitors.
B) Market segmentation is only feasible for large corporations; small businesses don’t have the
resources to engage in the process.
C) Governments should not attempt market segmentation because the strategy is only applicable
for consumer and organizational markets.
D) If a business firm goes to the trouble and expense of segmenting its markets, it expects to
increase its sales, profits, and return on investment.
E) Market segmentation strategies work less than 10 percent of the time.
32) When expenses are greater than the potential increased sales from market segmentation, a
firm should
A) not consider market segmentation at this time.
B) combine departments within the company to make the process more streamlined.
C) reduce production costs or increase prices to facilitate the segmentation process.
D) seek alternate channels of distribution, including Internet sales.
E) discontinue manufacturing any products that are not in the mature stage of their product life
cycle.
33) All of the following are market segmentation strategies except which?
A) build-to-order
B) multiple products, multiple market segments
C) one product, multiple market segments
D) multiple products, one segment
E) mass customization
34) When a firm produces only a single product or service and attempts to sell it to two or more
market segments, it avoids
A) the extra cost of developing and producing additional versions of the product.
B) creating a customer service gap.
C) indirect distribution and logistics problems.
D) restructuring the firm’s strategic planning.
E) amortization costs of product enhancements.
35) When compared to a multiple products, multiple market segments strategy, a one product,
multiple market segment strategy
A) is a much more effective means of meeting consumers’ individual needs.
B) creates greater savings in production costs.
C) is a more effective way of meeting organizational objectives.
D) has significantly higher distribution costs.
E) is more profitable since a firm can charge the new segments higher prices without changing
the product.
36) One marketing action that can be taken to sell a single product or service to multiple market
segments is to
A) develop and produce another version of the product.
B) manufacture products that appeal to different markets.
C) develop a new channel of distribution.
D) purchase another firm that has additional products that would appeal to multiple markets.
E) issue stock to fund additional research and development for new products.
37) The annual Street & Smith’s Baseball magazine had exactly the same stories but with 15
different covers to appeal to baseball fans in 15 of the U.S. regions. What is the basis of its
market segmentation strategy?
A) psychographic segmentation
B) retail outlet segmentation
C) demographic segmentation
D) behavioral segmentation
E) geographic segmentation
38) The annual Street & Smith’s Baseball magazine uses 15 different covers featuring a baseball
star from each of its regions in the United States, yet each regional issue has the same magazine
content. The publisher is using which of the following segmentation strategies?
A) multiple products with one segment
B) one product with one channel of distribution
C) one product with multiple market segments
D) one product with changes based on customer behavior
E) multiple products with multiple segments