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Indicate whether the statement is true or false.
1. Market segmentation attempts to isolate traits that distinguish a certain group of consumers from the overall
market.
a. True
b. False
2. Placing a product at a certain point or location within a market in the minds of prospective buyers is known as
market mapping.
a. True
b. False
3. Niche marketing is best suited for firms that offer highly specialized goods and services.
a. True
b. False
4. A hotel purchases towels for use in its rooms. In this context, these towels will be considered business
products.
a. True
b. False
5. The target market for a product is the specific segment of consumers most likely to purchase that particular
product.
a. True
b. False
6. Most magazines can be successfully marketed to consumers through mass marketing strategies.
a. True
b. False
7. Children exert considerable influence over household food purchases such as cereal.
a. True
b. False
8. Firms must attempt to group consumers according to the presence or absence of those factors that affect
purchase decisions.
a. True
b. False
9. Products bought by ultimate customers for personal use are known as consumer products.
a. True
b. False
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10. Raw silk is an example of a consumer product.
a. True
b. False
11. Psychographic segmentation is the most common method of market segmentation.
a. True
b. False
12. Items can be classified as business products, not because of what they are, but because of how they will be
used.
a. True
b. False
13. Firms often purchase legal services from external consultants. However, as this does not directly contribute
to the firm’s production activities, legal services cannot be considered a business product.
a. True
b. False
14. Psychographic segmentation helps marketers to gain a sharper insight into consumer purchasing behavior.
a. True
b. False
15. Concentrated marketing strategy ties a firm’s growth to a specific market segment.
a. True
b. False
16. Home Depot introduced a new line of riding lawn mowers. The company decided to focus more on people
living in the suburbs than those in the city because a survey showed the former category to be more inclined
toward gardening. This is an example of a demographic segmentation by Home Depot.
a. True
b. False
17. Psychographic segmentation involves segmenting the consumers on the basis of the benefits they seek from
a product.
a. True
b. False
18. A company that practices differentiated marketing can generate more sales compared to those generated by
undifferentiated marketing.
a. True
b. False
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19. Up & Away Flying Corporation recently began manufacturing drones. If they have a limited advertising
budget, concentrated marketing would be the ideal marketing strategy for this firm.
a. True
b. False
20. If a company markets a consumer product, such as toilet paper, in bulk quantities to the entire market, it is
involved in micromarketing.
a. True
b. False
21. Division of an overall market into homogeneous groups based on their locations constitutes socioeconomic
segmentation.
a. True
b. False
22. “For the same dollars that you spend on a no-frills ticket to Los Angeles, fly Business Class with us!” is the
advertising statement issued by FlyHigh Airlines. It represents an attempt by FlyHigh Airlines to position itself
with respect to its competitors.
a. True
b. False
23. Psychographic segmentation divides a population into groups with similar values and lifestyles.
a. True
b. False
24. Dividing an overall market into homogeneous groups based on gender and age would constitute
demographic segmentation.
a. True
b. False
25. Automobile manufacturers and food processing companies typically segment a particular geographic region
based on the same factors.
a. True
b. False
26. A market includes any person or entity that has the willingness and the purchasing power to buy a product.
a. True
b. False
27. Geographic segmentation provides useful distinctions when regional preferences or needs exist.
a. True
b. False
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28. Division of the total market into smaller, relatively homogeneous groups is known as market optimization.
a. True
b. False
29. Business products contribute directly or indirectly to the production of other goods and services for resale.
a. True
b. False
30. Families, bachelors, and retirees could be considered separate market segments for a company promoting
travel packages.
a. True
b. False
31. Typically, a single marketing mix strategy attracts all sectors of a market.
a. True
b. False
32. The vast majority of firms today use an undifferentiated or mass marketing approach to segmentation.
a. True
b. False
33. Geographic indicators such as job growth give useful guidance to marketers, depending on the type of
products they sell.
a. True
b. False
34. Not-for-profit organizations practice market segmentation.
a. True
b. False
35. Since rubber purchased by Goodyear is utilized to manufacture tires that are ultimately used by consumers
for their automobiles, rubber is a consumer product for Goodyear.
a. True
b. False
36. Ethnicity is one of the demographic segmentation variables. In the United States, the African-American
population is the fastest growing ethnic group.
a. True
b. False
37. A positioning map provides a valuable tool to help managers position products by graphically illustrating
consumers’ perceptions of competing products within an industry.
a. True
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b. False
38. Married couples enter the “empty nest” stage once their children are grown.
a. True
b. False
39. Detergent packets purchased by a leading laundry service are considered business products.
a. True
b. False
40. Marketers rarely encounter differences among members of a target group, as they segment potential
consumers into homogeneous groups.
a. True
b. False
41. Concentrated marketing is also known as niche marketing.
a. True
b. False
42. The market segmentation that is based on the stages of the family lifecycle is a form of demographic
segmentation.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
43. Nike not only manufactures and distributes shoes for several different sports but also develops advertising
campaigns around star athletes from these different sports. As just a few examples, LeBron James and Kevin
Durant promote the Nike basketball shoes, Cristiano Ronaldo promotes soccer cleats, and Odell Beckham, Jr.
promotes football cleats. Nike is taking a(n) ______ approach.
a. differentiated marketing
b. concentrated marketing
c. undifferentiated marketing
d. consolidated marketing
44. Angela has recently opened Angela’s Exquisite Accessories, a boutique that sells women’s accessories. She has picked
items that she thinks young women will enjoy, and is especially interested in upscale designer items for wealthier
customers. Angela is using:
a. demographic segmentation.
b. geographic segmentation.
c. psychographic segmentation.
d. behavioral segmentation.
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45. In recent years, consumers have become increasingly concerned about the use of pesticide and other
chemicals in the agricultural industry. Some are worried that the increased use of chemicals has led to higher
incidences of disease such as cancer. Consumers who share these opinions will often purchase products labeled
“organic” and “natural.” Marketers who are utilizing these words on product packaging or in their promotions
are implementing _______ segmentation.
a. psychographic
b. benefit
c. geographic
d. demographic
46. _____ are goods and services purchased for use either directly or indirectly in the production of other goods and
services for resale.
a. Impulse goods
b. Shopping goods
c. Business products
d. Unsought products
47. Which of the following is a basic requirement for effective market segmentation?
a. The firm must avoid focusing on the consumer-dependent variable, such as discretionary income, while
conducting market segmentation.
b. The market segment must present measurable purchasing power and size.
c. The company must expand beyond its marketing capabilities to capture those market segments that have
reached the maturity stage in the product life cycle.
d. The company must target a large number of small market segments so that they can develop effective
strategies to appeal to them.
48. Lefty’s, The Left Hand Store claims it has the “biggest and most interesting selection of left-handed
products” anywhere. Lefty’s offers special scissors, tools, kitchen items and school supplies, all
designed for left-handed people. Lefty’s is quite successful, even though only about 10% of the
population is left-handed. It can be said that left handed people are Lefty’s:
a. target market.
b. market focus.
c. market segment.
d. customer analytics.
49. Vicks advertises its NyQuil brand is THE nighttime cold remedy. Vicks wants you to think of NyQuil
whenever you need a “nighttime, sniffling, sneezing, aching, coughing, stuffy-head, fever, so you can rest
medicine.” NyQuil is the product for this situation. NyQuil is using a_______ positioning strategy.
a. product use or application
b. competitive
c. value
d. product specific
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50. In your regular goods and services consumption activities, you purchase products from the wholesaler for
resale and for use in your store’s daily operations. You also purchase products that you will feature in the gift
baskets you make. On the basis of this information, which of the following best describes the market component
you are part of?
a. Professional
b. Business
c. Consumer
d. Resale
e. Manufacturing
51. The lumber that a carpenter purchases to make a table for a customer can be classified as a(n):
a. impulse product.
b. business product.
c. consumer good.
d. final product.
52. McDonald’s is not known as a vegetarian friendly restaurant. Recently, however, McDonald’s test marketed
a vegan burger, appropriately name the McVegan, in Finland. While vegetarians were excited about the
possibility, sales in the test were slow and McDonald’s has decided to not introduce the item in its stores. It
seems that vegetarians just did not frequent McDonald’s. The McVegan failed which of the key criteria for
successful market segmentation?
a. Significant in size and purchasing power
b. Profitable
c. Consistent with the firm’s marketing capabilities
d. Cooperative with the customer
53. Title Nine is a specialty retailer targeting active women with a proprietary mix of apparel designed for active
lifestyles and sports. The company began as a direct marketer – using only catalogs and its website to generate
sales. However, over the years, Title Nine has opened retail outlets across the country. The company identifies
strategic opportunities for new stores based upon the sales generated by current customers in the potential
market area. For example, if Title Nine has a significant number of purchasers in the Boston area, they will
further analyze the market and select a location for a retail outlet. What type of segmentation strategy is Title
Nine utilizing when selecting a market for a new store location?
a. Geographic
b. Demographic
c. Lifestyle
d. Benefit
54. Oscar Mayer, a maker of various meat products, introduced Lunchables, a product specifically aimed at
children. This is an example of:
a. undifferentiated marketing.
b. differentiated marketing.
c. mass marketing.
d. micromarketing.
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55. Market segmentation plays a very important role in developing a marketing strategy. Select the best
definition of market segmentation from the choices below.
a. Dividing the total available market into smaller, similar groups
b. Dividing the company profits for distribution among shareholders
c. Dividing the marketing budget that will be used in world markets and in the United States
d. Dividing the workload among marketing department employees
e. Dividing the total market into two distinct groups, the global market and the U.S. market
56. Which of the following products would be the best choice to be marketed using an undifferentiated
marketing strategy?
a. Luxury automobiles
b. Healthy snack foods
c. Table salt
d. Imported wine
57. A junior member of your marketing department has recommended demographic segmentation for your fast food
brand. In a memo, he wrote: “We should be marketing to females who are Hispanic, low-income, unmarried, and have
four or more children.” You express at least one strong concern about this recommendation. What concern(s) do you
express?
a. Gender is not a demographic segmentation variable.
b. Ethnicity is not a demographic segmentation variable.
c. Marital status is not a demographic segmentation variable.
d. The recommendation could lead to stereotyping and market alienation.
e. The recommendation is clearly outdated.
58. The Fortune at the Bottom of the Pyramid is a book presenting an interesting argument – that emerging
economies have 4 billion residents that struggle to live on a very minimal income, but even making a tiny profit
off of sales of this volume can be a financial windfall. With a market of this size, there is certainly vast
potential. However, the cost structure, product mix, and distribution system of U.S. firms has not proven to be
well suited to provide the low cost goods and services this market needs. Overall, The Fortune at the Bottom of
the Pyramid has not worked out for U.S. companies because of which of the key criteria for successful market
segmentation? This segment is not:
a. consistent with the U.S. firms’ marketing capabilities.
b. signification in size and purchasing power.
c. well focused.
d. customer derived.
59. Soft drink producers such as Pepsi make their products available to consumers in a variety of packages – 12
ounce cans, 20 ounce bottles, 1 liter bottles, and 2 liter bottles are just some examples. Of course, some
consumers don’t buy 2 liter bottles because the beverage can go flat before it is consumed. For other customers
though, this is the preferred packaging. It seems Pepsi makes good use of _________ segmentation.
a. usage rate segmentation
b. brand loyalty segmentation
c. psychographic segmentation
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d. demographic segmentation
60. Marketers obviously want to have products available where customers live. Hence, retail store site selection is critical
for bricks and mortar retailers. Further, consumers in urban areas, suburban areas, and rural areas often have different
wants and needs. Retailers not only calculate how far apart stores need to be but also what merchandise is carried by
different stores based on geographic areas. These retailers are making decisions based on what element of geographic
segmentation?
a. Market density
b. Market potential
c. Market climate
d. Market behavior
61. Placing a product at a certain point or location within a market in the minds of prospective buyers is known
as _____.
a. positioning
b. social referencing
c. value engineering
d. optimizing
62. The determination of whether pencils are consumer products or business products is based on:
a. the purpose for which the pencils are purchased.
b. the number of pencils purchased.
c. the place where the pencils are purchased.
d. the total price paid for the pencils.
63. Marketers use several different approaches to market segmentation. Which of these approaches is the most
commonly used?
a. Demographic segmentation
b. Psychographic segmentation
c. Behavioral segmentation
d. Geographic segmentation
64. The “empty nest” stage in the family lifecycle includes:
a. young unmarried people.
b. married couples whose children are living on their own.
c. married couples with children in their growing years.
d. newly married couples without children.
65. You have just been promoted to vice president of marketing for your firm. Unlike your predecessor, you
believe the firm can increase its sales in a market by focusing on more than one segment of the market. You
recognize that doing this means your firm will incur higher production costs. Based on this information, which
of the following targeting strategies are you advocating?
a. A concentrated targeting strategy
b. An undifferentiated targeting strategy
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c. A broad-based targeting strategy
d. A differentiated targeting strategy
e. A heterogeneous targeting strategy
66. Sustainability has become an important value among individuals in the United States and some believe that
manmade factors such as the increased use of diesel and gasoline in cars has led to global warming. Those
worried about global warming and seeking ways to reduce their carbon footprint and have invested in products
such as solar panels for their homes and electric or hybrid vehicles. What type of segmentation would be most
appropriate for Toyota to utilize in marketing its Prius – a hybrid vehicle?
a. Psychographic
b. Demographic
c. Geographic
d. Benefit
67. Master Cookie Bakers sells customized cookies to restaurants and standardized cookies to individual buyers. The firm
is using:
a. Undifferentiated marketing, since it only sells cookies
b. Differentiated marketing, since it sells different products to different markets
c. Concentrated marketing, since it concentrates only on restaurants and individuals
d. Micromarketing, since cookies are small
e. Niche marketing, since cookie buyers are a single niche among buyers of baked goods
68. Which of the following is utilized to help managers position products by graphically illustrating consumers’
perceptions of competing products within an industry?
a. Positioning map
b. Differentiating map
c. Separation marketing graph
d. Repositioning graph
69. Behavioral segmentation focuses on the demonstrated behavior of consumers. Looking at what consumers
actually do, rather than their characteristics, brings us much closer to the actual purchase. Which of the
following is NOT one of the approaches to behavioral segmentation?
a. Media habits
b. Benefits sought
c. Usage rate
d. Brand loyalty
70. Lands End makes a variety of products at different price points, but one thing that remains consistent – the
guarantee. In fact, the company clearly states “Guaranteed. Period®. We want nothing less than your absolute
satisfaction. If you’re not satisfied with any item, simply return it to us at any time for an exchange or refund of
its purchase price.” Lands End feels its guarantee is the best in the business. This guarantee is part of Lands
End ______ positioning strategy.¶
a. product attribute
b. key market characteristic
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c. product use
d. product application
71. Gabriela’s is a boutique gift shop that carries a variety of high quality items. Gabriela has recognized that
she can’t sell everything for everyone, but she does want to have items for major parts of the market. For
example, she recently added men’s leather goods, including wallets, belts, and cell phone covers to the women’s
purses and shoes she already carried. In addition, Gabriela has items for children such as backpacks. By
identifying different customer groups, Gabriela has engaged in:
a. market segmentation.
b. market focus.
c. buyer behavioral analysis.
d. customer analytics.
72. The marketing strategy that focuses on producing a single product and marketing it to all customers is
called:
a. concentrated marketing.
b. micromarketing.
c. mass marketing.
d. differentiated marketing.
73. If a company markets its breakfast cereal to children, it is using _____ segmentation to segment its markets.
a. psychographic
b. demographic
c. end-use
d. geographic
74. Jacob is the facility manager for a senior living facility and is responsible for maintaining the facility and
ensuring that it looks its best. He likes to repaint all surfaces in the facility every two years and has an
exclusive contract with Sherwin Williams who supplies the paint and materials. The paint and materials that
Jacob purchases from Sherwin Williams to be utilized in the senior living facility would be classified as _____
products.
a. business
b. consumer
c. durable
d. shopping
75. Marketers must consider the advantages and disadvantages of each marketing strategy as they choose which
one is the best fit for their firm. You have chosen to market your company’s product using a differentiated
marketing strategy. What disadvantage will you face?
a. Your mass marketing approach may put you out of touch with today’s consumer.
b. Your marketing costs will be higher.
c. Your direct competition may appeal to your very narrow niche market in a similar manner.
d. Your firm may lose sight of other larger and more profitable markets.
e. Your mass marketing approach may not appeal to smaller market segments.
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76. A consumer goods company segments its markets on the basis of purchase patterns of their customers. The
company groups its consumers who regularly buy their product into heavy, moderate, and light users, and
nonusers. This segmentation approach is an example of _____.
a. segmentation by benefits sought
b. geographic segmentation
c. segmentation by usage rates
d. distributive segmentation
77. There are a number of strategies that you can use to position your company’s technology product in the mind
of the consumer. You decide to focus your advertising campaign on the perception that your product is the best
compared to others in the marketplace. Which of the common categories for product positioning are you using
to develop your marketing campaign?
a. Application
b. Usage rate
c. Product attributes
d. Competitive
e. Product user
78. Apple’s iPhone and Samsung’s Galaxy series have had some interesting advertisements over the years. With
Apple’s iPhone X now available, Samsung has introduced a new series of advertisements mocking the series of
iPhones as constantly trailing Samsung’s development across several attributes from waterproofing to the jack
for the headphone. Samsung is utilizing a ________ positioning strategy.
a. competitive
b. key market characteristic
c. product use
d. product application
79. Product positioning is about creating a mental image or perception of a brand, especially vis-à-vis
competitive brands. How do you think of Ford and Chevrolet compared to Jaguar or Aston Martin? Or
Walmart compared to Neiman Marcus? Or Rice Krispies compared to Shredded Wheat? These brands all have
a certain space in your mind on different attributes. To help capture and illustrate this, marketers often use a:
a. product use or application.
b. competitive.
c. value.
d. product specific.
80. Matiyos never worried about life insurance when he was young and single. However, when Matiyos and Jermesha got
married, he started thinking about life insurance, but didn’t purchase any. When they had their first child and bought a
house, Matiyos thought it was time to buy life insurance so Jermesha could afford their house if something did happen to
him. Matiyos’ situation is typical when it comes to life insurance sales. Recognizing this, life insurance companies
should use _______ as a segmentation variable.
a. family life cycle
b. geographic variables
c. psychographic characteristics
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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
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e. Use sociocultural variables to segment the market
86. Social media has assumed a major role in the promotion of goods and services. Almost all television
advertising today includes calls to “like us on Facebook” or “follow us on Twitter.” While most U.S. citizens
engage in some form of social media, some only do this occasionally while others are constantly on their
computer or phone accessing social media. Just like with social media, consumer vary in their consumption of
almost all products and services. Recognizing these differences can lead a firm to employ:
a. usage rate segmentation.
b. brand loyalty segmentation.
c. demographic segmentation.
d. benefits sought segmentation.
87. Goods and services purchased by the ultimate consumer for personal use are called _____ products.
a. business
b. primary
c. consumer
d. secondary
88. Marketers applying a positioning strategy want to:
a. make their product look as much like the market leader as possible.
b. emphasize a product’s unique advantages and differentiate it from competitors’ options.
c. identify the different product attributes desired by different market segments.
d. target only the loyal users of the product.
89. Clairol offers a line of hair color called “Nice n Easy,” which allows women to touch-up their hair and easily
cover their gray hairs conveniently and easily at home. Based on research, Clairol knows that women aged 30
and above are most likely to need some type of color product to hide their gray hair and maintain a youthful
appearance. What type of segmentation does Clairol use by targeting women over 30?
a. demographic
b. geographic
c. psychographic
d. benefit
90. Almost everyone purchases laundry detergent. However, how do you choose the specific detergent to buy
from all the options? For instance, Procter and Gamble’s Tide brand is just one of many brands available.
However Tide is actually 70 different products when the different PODS, liquid Tide, and powder Tide are
considered. There are Tide brand detergents for very specific purposes – such as Tide Plus Febreeze Freshness
Botanical Rain (HE) Turbo Clean liquid laundry detergent designed for those that want lasting odor protection
and for use in high efficiency washing machines. It is clear that Procter and Gamble is using:
a. market segmentation.
b. market division.
c. behavioral analysis.
d. customer categorization.
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91. The latest ad of Crest toothpaste says “Crest is a cavity fighter.” This is an example of a positioning strategy
based on:
a. product price/quality.
b. product homogeneity.
c. product application.
d. product users.
92. While almost everyone purchases toothpaste, not everyone buys the same toothpaste. Even a single brand can have
several variants to appeal to different customer needs. For example, Procter and Gamble’s Crest 3D White is for those
seeking brighter white teeth, Crest Pro-Health provides protection against plaque bacteria, and Crest Sensitivity is for
those with sensitive teeth. Clearly, P&G is taking a(n) ______ approach with the Crest brand.
a. differentiated marketing
b. undifferentiated marketing
c. market concentration
d. consolidated
93. Psychographic segmentation divides a population into groups based on:
a. their use of the product.
b. their income and expenditure patterns.
c. their geographic location.
d. their attitudes, values, and lifestyles.
94. Jimmy opened McGill’s Microbrewery in his hometown of Cicero, Illinois. While the beer business has
100s of brands, Jimmy focused on a single product – McGill’s Double Hopped Barley Beer. The beer was only
sold on premise to customers that came to the brewery. McGill’s is taking a(n) ______ approach.
a. concentrated marketing
b. differentiated marketing
c. undifferentiated marketing
d. consolidated marketing
95. Progresso Soup has a line of hearty soups that are promoted to all consumers using a single marketing mix.
The company is utilizing ______ marketing.
a. undifferentiated
b. differentiated
c. concentrated
d. holistic
96. A positioning map:
a. is used primarily by companies utilizing undifferentiated marketing strategies.
b. can be used only for already successful products in the market.
c. shows how consumers view a product relative to competitive products.
d. outlines how to introduce a new product to the marketplace.
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97. Psychographic segmentation is not an exact science. While it helps to paint an overall picture of the
psychological motivations of consumers, those motivations are influenced by countless variables, such as
family, occupation, and culture. Select the statement below that gives an accurate description of the effective
use of psychographic segmenting.
a. Psychographic segmenting is most effective when applied to domestic markets because global cultures
are so varied.
b. Psychographic segmentation is effective when it helps to match a company’s product offering with the
types of consumers who use its products.
c. Psychographic segmenting becomes less effective if it links consumer social values with buying
behavior.
d. AIO statements are the least popular segmenting tool because they present the consumer with an
overwhelming amount of information.
e. Psychographic segmenting is less effective when it is combined with such other segmenting approaches
as demographic and geographic approaches.
98. Starbucks marketing itself as “premium coffee” beverage retailer is an example of a positioning strategy
based on _____.
a. product class
b. product users
c. product life cycle stage
d. product homogeneity
99. Lululemon Athletica, which specializes in athletic wear for women, recently launched a website featuring
Ivivva, a new line of athletic and dance clothing for girls. Based on the information given in this example,
Lululemon Athletica is using _____ segmentation to segment its markets.
a. geographic
b. psychographic
c. demographic
d. core based
100. Segmentation by benefits sought is a product-related segmentation approach that:
a. determines the marketer’s effectiveness in satisfying the consumer.
b. measures brand loyalty and consumer perception.
c. reevaluates customer reactions post-consumption.
d. focuses on the attributes that people seek in a product.
101. Kyle plans to buy new tires for a car that his family uses for camping trips. These tires are of the same type
like those that are used on General Motors commercial trucks and can be purchased from Industrial Tire
Company. The tires that Kyle will buy for his car can be classified as _____ products.
a. business
b. service
c. MRO
d. consumer
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102. When firms identify the factors that affect consumers’ purchase decisions and develop strategies and tactics
to appeal to specific types or groups of customers, they are practicing market _________.
a. segmentation
b. differentiation
c. complexity
d. uniformity
103. Companies work hard to establish a mental image of their product or service offering in the minds of
consumers. For instance, Vicks wants you to think of its NyQuil brand whenever you need a “nighttime,
sniffling, sneezing, aching, coughing, stuffy-head, fever, so you can rest medicine.” Similarly, Hallmark wants
you to know they are the card “when you care enough to send the very best.” These slogans help create and
reinforce the mental image you have of these brands and are part of their:
a. positioning strategy.
b. sales approach.
c. corporate identity.
d. firm application.
104. A firm that divides its customers into homogeneous groups based on their locations is said to be practicing
_____ segmentation.
a. psychographic
b. product-based
c. geographic
d. demographic
105. The product-related segmentation of consumers based on the strength of their attachment and allegiance to
their preferred products is called _____ segmentation.
a. values and lifestyles
b. business-to-business
c. psychographic
d. brand loyalty
106. Dell Computer offers a variety of desk top, tablet, and laptop computers. One popular product line is Dell’s
Alienware – built for gamers with high speed processors, enhanced memory and special graphics cards. What
marketing principle is Dell utilizing with its Alienware product line?
a. Market segmentation
b. Marketing concept
c. Geographic segmentation
d. Profit-oriented segmentation
107. Geographic segmentation is frequently used by many firms when they perceive differences in the needs and
wants of customers in different locations. Geographic segmentation is based on four different factors. Which
of the following is NOT one of the elements of geographic segmentation?
a. Market diversity
b. Market size