chapter 9
d. behavioral factors
81. Compared to undifferentiated marketing, the firm that practices differentiated marketing may generally
expect:
a. less sales by segment.
b. lower total production costs.
c. greater promotional costs.
d. lower inventory costs.
82. American Express, a large firm with many financial products, recently introduced two new credit cards
designed for very specific markets: The Knot, for engaged couples, and The Nest, for newlyweds. This is an
example of _____ marketing.
a. undifferentiated
b. differentiated
c. mass
d. societal
83. Companies want to learn about consumer psychographic characteristics as these often relate directly to
purchase activity. However, unlike demographic characteristics that are often observable or available through
sources such as the census, psychographic information is more difficult to obtain. The most common method of
gathering psychographic information is through:
a. large-scale surveys asking consumers to agree or disagree with a collection of statements describing various
activities, interests, and opinions.
b. observation of consumer shopping behavior in a natural setting.
c. Nielsen company data regarding television viewership.
d. Credit card information regarding purchase activity.
84. Many other students in your class have demographic characteristics very similar to you. You are likely the
same age, same level of education, same ethnic background, and so forth. However, you may have very
different attitudes, interests, and opinions. For example, you may have little in common regarding your
political opinion, taste in music, or hobbies you enjoy. Recognizing these differences are related to consumer
purchase activity will lead a company to use:
a. psychographic segmentation.
b. geographic segmentation.
c. demographic segmentation.
d. behavioral segmentation.
85. You have just completed an extensive marketing research project designed to determine the potential of a
new service your company is considering launching. Using surveys, polling, face-to-face interviews, and mail-
in questionnaires, you have determined that the consumers who are most inclined to use this new service live in
densely populated urban areas within certain zip codes. What approach to market segmentation should you use?
a. Use psychographic variables to segment the market
b. Use demographic variables to segment the market
c. Use behavior variables to segment the market
d. Use geographic variables to segment the market