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Chapter 09
Test Bank
1. The loyalty program My Starbucks Rewards, which allows members to pay via their mobile device and earn points toward discounts and free offers,
enables Starbucks to gather the purchase behavior data, appropriately segment that customer, and offer customers deals within a week.
2. When a marketer adjusts the marketing mix to give customers a clear, distinctive understanding of what the product does, the marketer is engaging in
psychographic segmentation.
3. For products like pencils and paper clips, marketers should probably use an undifferentiated targeting strategy.
4. When deciding how to promote his new medical oncology center, Dr. Jones decided that he did not need to throw a large grand opening reception.
Instead, he promoted the center to the internal medicine doctors in the area, who were the doctors most likely to refer patients to the center. Dr. Jones
was engaged in a concentrated targeting strategy.
5. It would be logical for bathing suit marketers to use geographic segmentation.
6. NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of its fans were female. This is an example of
psychographic segmentation.
7. The Value and Lifestyle Survey (VALS) conducted by Strategic Business Insights (SBI) is a widely used tool for geographic segmentation.
8. Giant Food Stores in suburban Washington, DC, adjusts its ethnic food aisle offerings based on the ethnic groups living near each store. Giant Foods
is using geodemographic segmentation.
9. Positioning strategies generally focus either on how the product benefits the consumer or on how it is better than competitors’ products.
10. As it relates to positioning, a self-values map displays the position of products or brands in the consumer’s mind.
11. Perceptual maps include positions of current brands as well as ideal points where a consumer segment would want a product to be.
12. The STP process is made up of strategy, targeting, and promotion.
13. The first step in the segmentation process is to articulate the vision or objectives of the company’s marketing strategy clearly.
14. Automobile manufacturers could build cars specially designed for very tall people (for example, over seven feet), but it is likely that this segment is
not substantial.
15. A complex product that is best described in writing will be difficult to explain to consumers who are unable to read. For this reason, a segment in
which many consumers could not read would be considered unattractive because the consumers would not be responsive.
16. A company that sells only multigrain, low-calorie bread should use an undifferentiated targeting strategy.
17. A value proposition compares the price of a product to its benefits.
18. Maintaining a unique value proposition can be sustained in the long term only in monopoly situations or monopolistic competition situations.
19. Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the firm has ever used.
She has defined the mission and objectives, and she just finished a situation analysis for the firm. The next step is to
20. Segmentation, targeting, and positioning
21. Alex has found that both commercial and residential real estate buyers respond positively to his marketing communication message. Alex has
identified __________ that respond similarly to his marketing efforts.
22. For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting its marketing mix
variables in order to give customers
23. The first step in the STP process is to
24. For products like clothes pins, which provide the same benefit for all consumers, marketers should probably use a(n) ________ strategy.
25. In a classic example of segmentation strategy, years ago Swift Meat Company transformed turkey meat into “Butterball” turkeys. In doing so, the
company
26. Adidas Group owns Reebok, Rockport, and TaylorMade brands. Adidas uses the different brands to pursue a(n) __________ strategy.
27. Adidas Group owns Reebok and Rockport—both of which offer different types of shoes. Having a variety of brands allows adidas to use a
differentiated targeting strategy to
28. One of the benefits of a differentiated targeting strategy is that it allows the firm to diversify its business and
29. A differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market; this strategy
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30. Firms use a differentiated targeting strategy because
31. When Penguin Catering Services first opened, the owner decided to target only events at resorts in its geographic region. Penguin Catering was
using a(n) __________ targeting strategy.
32. __________ is an extreme form of a targeting strategy.
33. “Corporate pilot fish” are former employees who start a new business based primarily on contacts and contracts with their old company. A corporate
pilot fish would probably pursue a(n) __________ targeting strategy.
34. Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order shoes with
35. Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies.
36. When Mr. How, a Pennsylvania-based discount lumber and hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was
engaged in
37. Differences in weather and climate create opportunities for
38. Kellogg’s marketing communications about its Special K cereal appeal almost exclusively to women. This is an example of __________
segmentation.
39. __________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy
to reach.
40. Beer marketers know that high-school educated, working-class males from the ages of 25 to 40 make an attractive market for their products. This is
a __________ segment of the beer market.
41. Television advertising has recently expanded to include “mini-ads,” which are short ads lasting five to ten seconds. These ads are most useful in
advertising to men, since men are more likely than women to channel surf during commercial breaks. Given this fact, this type of advertising will be
more useful to marketers engaged in __________ segmentation.
42. Demographic segmentation is segmentation based on all of the following except
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43. Psychographics is the segmentation method that delves into how consumers
44. To develop psychographic segments, the marketer must understand consumers’
45. Paul is considering psychographics as a way to segment the market for his small travel agency. This approach to segmentation offers him an
advantage because
46. Education marketers know that the primary motivations of most nontraditional college students are self-respect and self-fulfillment, so they craft
their marketing message to emphasize the benefits these consumers are looking for in a college education. What type of segmentation method was used
to segment this market?
47. Baby Boomers represent a huge demographic segment for travel marketers. Baby Boomers are also heavily motivated by self-fulfillment, which
creates the possibility of __________ segmentation.
48. Beverage companies often use television commercials with images of young people laughing and enjoying themselves on a beach or in a club. These
images are designed to appeal to consumers’ __________, suggesting “be like me.”
49. If values provide an end goal, and self-concept is the way one sees oneself in the context of that goal, lifestyles are
50. VALS is the most widely used __________ segmentation tool.
51. Marketers have found that __________ segmentation is often more useful for predicting consumer behavior than __________ segmentation.
52. Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic
segmentation
53. __________ segmentation is the segmentation method most directly related to value creation for consumers.
54. A university using benefit segmentation and targeting students who want to get a degree quickly while still working full-time would most likely focus
on
55. The light beer commercial with the slogan “less filling, tastes great” was based on __________ segmentation.
56. Toothpastes sold in supermarkets and pharmacies promise various results, such as whiter teeth, protection against gum disease, tartar control, or
fresh breath. Toothpaste marketers are using __________ segmentation.
57. Golden Years Vitamin Corporation targets consumers living in Florida who are over age 65. Golden Years is using __________ segmentation.
58. The phrase “birds of a feather flock together” captures the idea of __________ segmentation.
59. The Tapestry™ Segmentation system divides and sorts small geographic areas into categories using 60 or more demographic and lifestyle
characteristics. This market research tool is an example of __________ segmentation.
60. Gloria is opening an upscale women’s clothing store in a growing suburban residential area. Gloria knows her target market is upper-income women
living within 20 miles of her store. She can’t afford to purchase Tapestry analysis, so she will most likely use __________ as a basis for targeting her
61. Geodemographic segmentation can be particularly useful for __________, because customers typically patronize stores close to their neighborhood.
62. Retail store chains often use __________ data to tailor each store’s assortment to the preferences of the local community.
63. Marketers often create a special marketing mix for loyalty segments because these segments are
64. When Ron complained to his bank about the unprofessional behavior of one teller, the branch manager added a code into his accounts alerting all
tellers that Ron was a valued customer and to provide whatever service he requests. The branch management included Ron in its __________
segmentation.
65. When airlines created frequent-flyer programs, they were among the first retailers to embrace
66. One of the reasons marketers use loyalty segmentation is
67. While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do not help marketers determine
68. Kim’s Kayak Tours initially identified active retirees living in the retirement community nearby as one of its target markets. Kim then tailored her
service and marketing message to the interests and schedules of that audience. Kim initially used __________ segmentation and then used __________
segmentation.
69. Marketers often employ a combination of segmentation methods, using __________ to identify and target their customers, and __________ to
design products and messages to appeal to them.
70. Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to
71. Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate whether or not each
segment is attractive relative to all of the following except
72. Carlos has identified four potential market segments for his Rent-A-Nurse service. He will now compare the segments to see if they are distinct from
each other. Carlos is evaluating whether or not each segment is
73. Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to
have sufficient buying power. Greta is concerned with whether the segment is
74. Ryan wants to sell personal website services to American soldiers in Afghanistan. Because of the difficulty of communicating with people in a war
zone, Ryan may have trouble with this segment not being
75. With access to the Internet nearly universal in the United States, many potential market segments have become more
76. Talbots, an upscale women’s clothing store, targets college-educated women between 35 and 55 years old with average household income of
$75,000 or more. This is a form of __________ segmentation.
77. When Talbots, an upscale women’s clothing store, tries to portray an image of “traditional, conservative, and with good taste,” it is appealing to its
target market’s
78. College students can be a less __________ market segment because students’ media habits are quite diverse and firms might have to use a wide
variety of media to attract this segment.