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Marketing Management, 15e (Kotler)
Chapter 9 Identifying Market Segments and Targets
1) Which of the following statements about market segmentation is true?
A) It involves changing the identity of a product, relative to the identity of competing products,
in the collective minds of the target market.
B) It is a process of evaluating each segment's attractiveness and selecting one or more to enter.
C) It is a process of creating an image or identity of the product in the minds of the target market.
D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs
and wants.
E) It is the quality of how marketers go to market with the goal of optimizing their spending to
achieve good results.
2) Establishing and communicating the distinctive benefit(s) of the company's market offering
for each target segment is called ________.
A) market research
B) market positioning
C) marketing effectiveness
D) market segmentation
E) market dominance
3) The process of selecting one or more market segments to enter is called market ________.
A) targeting
B) dominance
C) positioning
D) segmentation
E) research
4) A ________ consists of a group of customers who share a similar set of needs and wants.
A) vertical marketing system
B) market basket
C) market share
D) market segment
E) market level
5) Hilton Hotels customizes rooms and lobbies according to location. Northeastern hotels are
sleeker and more cosmopolitan. Southwestern hotels are more rustic. This is an example of
________ segmentation.
A) demographic
B) behavioral
C) psychographic
D) geographic
E) cultural
6) When Nike attempts to get close to its customers at the local level by sponsoring local school
teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the
following marketing formats?
A) differentiated marketing
B) affiliate marketing
C) guerrilla marketing
D) affinity marketing
E) grassroots marketing
7) Regardless of the type of segmentation scheme used, the key is adjusting the marketing
program to recognize ________.
A) the level of disposable income earned by the target group
B) customer differences
C) the cost-benefit relationship of narrowing the target market
D) customer complaints
E) saturated markets
8) If a marketer decides to segment a market based on neighborhoods, the marketer will have
chosen the ________ method of segmentation.
A) demographic
B) psychographic
C) geographic
D) cultural
E) behavioral
9) If a marketing manager segments the market into culture-, sports-, or outdoor-oriented groups,
he or she is segmenting the market on the basis of ________.
A) loyalty status
B) behavioral occasions
C) user status
D) psychographic lifestyle
E) readiness stage
10) When the Modern Museum of Art separated its consumers by whether they were culture-
oriented or outdoor-oriented for its new exhibit on art that used natural materials, they were
using ________ segmentation.
A) psychographic lifestyle
B) personality
C) behavioral occasions
D) social class
E) demographic
11) Robert is the owner of an automobile manufacturing company. He calls for a board meeting
and tells his directors that he wants to build a car that lets the users experience power and
exhilaration. He tells them that the car must allow his users to soar from 0-60 mph in about 4
seconds. He also adds in that the price of the car must be affordable enough for anybody making
a good salary. In accordance with the given scenario, Robert is trying to segment the market on
the basis of ________.
A) occupation
B) family size
C) benefits
D) nationality
E) user status
12) If a marketing researcher uses such names or categories as Blue Blood Estates, Winner's
Circle, Hometown Retired, or Shotguns and Pickups, when doing segmentation research, the
marketing researcher is using ________ clusters.
A) PRIZM
B) behavioral
C) psychographic
D) demographic
E) VALS
13) ________ are the most fashion-conscious of all racial and ethnic groups and are more likely
to be influenced by their children when selecting a product for purchase, and less likely to be
influenced by unfamiliar brands.
A) Hispanic Americans
B) Asian Americans
C) African Americans
D) LGBT customers
E) American Indians
14) Pampers divides its market demographically on the basis of ________ into prenatal, new
baby, baby, toddler, and preschooler.
A) life stage
B) gender
C) age
D) income
E) social class
15) The fact that Honda described its boxy Element as a "dorm room on wheels," but then
attracted so many baby boomers that the average age of the Element turned out to be 42 is an
illustration of the fact that baby boomers may be ________.
A) male-oriented
B) female-oriented
C) Young Digerati
D) Cosmopolitans
E) psychologically young
16) According to PRIZM, the ________ cluster is characterized as being in their late forties and
fifties, college-educated, upper-middle-class homeowners that married late, and are still raising
children in comfortable suburban subdivisions and pursuing kid-centered lifestyles.
A) Cosmopolitans
B) Beltway Boomers
C) Young Digerati
D) Winner's Circle
E) Old Milltowns
17) According to PRIZM, the ________ cluster is characterized by educated, midscale, and
multiethnic, urban couples in America's fast-growing cities. Concentrated in a handful of
metropolitan areas such as Las Vegas, Miami, and Albuquerque, these households feature older
home owners, empty nesters, and college graduates.
A) Beltway Boomers
B) Old Milltowns
C) Cosmopolitans
D) Young Digerati
E) Winner's Circle
18) According to PRIZM, the ________ cluster is characterized as the nation's tech-savvy
singles and couples, living in areas typically filled with trendy apartments and condos, fitness
clubs and clothing boutiques, casual restaurants, and all types of bars — from juice to coffee to
microbrew.
A) Beltway Boomers
B) Old Milltowns
C) Young Digerati
D) Cosmopolitans
E) Winner's Circle
19) According to PRIZM, the ________ cluster is characterized by retired singles and couples,
living on downscaled incomes in pre-1960 homes and apartments, who enjoy gardening, sewing,
socializing at veterans clubs, and eating out at casual restaurants.
A) Old Milltowns
B) Young Digerati
C) Winner's Circle
D) Beltway Boomers
E) Cosmopolitans
20) Those who favor localized marketing see national advertising as wasteful because it
________.
A) gets too up close and personal with consumers
B) drives up manufacturing and marketing costs by reducing economies of scale
C) magnifies logistical problems
D) fails to address local needs
E) sends conflicting marketing messages
21) Newlyweds in the United States buy more in the first six months than an established
household does in five years. Newlyweds are an example of a(n) ________ segment.
A) life stage
B) age
C) behavior
D) user status
E) income
22) Jose and Erika have just divorced. Which of the following demographic segmentation
subsegment formats might be used by marketers to reach Jose or Erika?
A) life stage
B) benefits
C) age segment
D) personality type
E) social class
23) ________ are products such as Kiehl's skin care and Kendall-Jackson wines that are priced
between average middle-market and superpremium Old Luxury brands and are also based on
emotions.
A) Old Luxury brand extensions
B) Accessible superpremium products
C) Luxury items
D) Hourglass products
E) Masstige goods
24) ________ are products such as the Mercedes Benz C-class and the American Express Blue
card, that extend historically high-priced brands down-market while retaining their cachet.
A) Hourglass products
B) Mass market products
C) Old Luxury brand extensions
D) Masstige goods
E) Accessible superpremium products
25) When consumers use Tide TOTALCARE laundry detergent, which is used by consumers
who want to obtain dry-cleaning type results at home, it is an example of ________, or switching
spending from one category to another while preserving a desired experience.
A) trading up
B) trading down
C) trading over
D) being trapped in the middle
E) treasure hunting
26) The ________ segment of the US premium wine market skews male, has an average age of
35, and uses wine as a badge to say who they are, so they are willing to pay more to make sure
they're getting the right bottle.
A) Savvy Shoppers
B) Image Seekers
C) Satisfied Sippers
D) Enthusiast
E) Overwhelmed
27) Which of the following statements about Gen Yers is true?
A) They are selective, confident, and impatient.
B) They are more likely to associate retirement with "the beginning of the end."
C) They are more pragmatic and individualistic.
D) They were born between 1964 and 1978.
E) They were the first generation to find surpassing their parents' standard of living a serious
challenge.
28) Rock band Foo Fighters created a digital street team that sends targeted e-mail messages to
members who receive exclusive news, previews, and opportunities to win prizes. The Foo
Fighters are using ________ to reach Generation Y.
A) student ambassadors
B) unconventional sports
C) cool events
D) computer games
E) online buzz
29) If a marketing manager employs such marketing techniques as online buzz, student
ambassadors, cool events, and street teams to reach target markets, the manager is most likely
appealing to the ________ market.
A) Generation Z
B) Generation X
C) Generation Y
D) Silent generation
E) Baby boomers
30) As part of an antismoking crusade, the American Legacy Foundation hires teens as the
"Truth Squad" to hand out T-shirts, bandanas, and dog tags at teen-targeted events. The
American Legacy Foundation is using ________ to reach Generation Y.
A) computer games
B) street teams
C) unconventional sports
D) online buzz
E) videos
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31) Which of the following statements about Gen Xers is true?
A) Gen Xers are more optimistic and team-oriented.
B) Gen Xers are selective, confident, and impatient.
C) Gen Xers are highly socially conscious and concerned about environmental issues.
D) Gen Xers feel self-sufficiency and the ability to handle any circumstance are key.
E) Technology is a barrier for Gen Xers.
32) Which of the following statements accurately describes what demographers are calling the
"boom-boom effect"?
A) Consumers are demanding more "bang for their buck."
B) Baby boomers still rule the marketplace.
C) Generation Y and their concern about environmental issues will dominate the market in the
future.
D) Products that appeal to 21-year-olds also appeal to baby boomers.
E) Companies must gain success quickly.
33) ________ is the science of using psychology and demographics to better understand
consumers.
A) Psychographics
B) Interactionism
C) Clustering
D) Demographic transition
E) Customerization
34) The horizontal dimension in the VALS framework is ________.
A) resources
B) innovation
C) maturity
D) impulsiveness
E) consumer motivation
35) Dennis requests his father to buy him a PlayStation® for his birthday. With respect to
consumer decision roles, which role is Dennis currently playing?
A) initiator
B) influencer
C) decider
D) buyer
E) gatekeeper
36) The key to attracting potential users of a product or service, or even possibly nonusers, is
________.
A) understanding the reasons they are not using it
B) offering financial incentives for first-time use
C) increasing the usage rate of existing users
D) developing a new product that better meets their needs
E) increasing advertising expenditures
37) The sale of turkeys in the United States is highest in mid- to late November, as people buy
turkeys to serve at Thanksgiving. Grocery stores that specifically advertise turkeys at this time of
year are segmenting on the basis of ________.
A) benefits
B) user status
C) buyer-readiness stage
D) demographics
E) occasion
38) Linda was buying all her groceries from Home Needs supermarket for the past 5 years. She
recently came across The Convenience Store, another supermarket just a few miles away from
her place and started buying her groceries from them. Linda can be best described as a(n)
________.
A) split loyal
B) antiloyal
C) shifting loyal
D) hard-core loyal
E) switcher
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39) When Amy goes shopping for clothes, she goes into every store in the mall looking for the
best deal. She is very price conscious. On the basis of loyalty status, Amy can be described as
a(n) ________.
A) switcher
B) split loyal
C) shifting loyal
D) hard-core loyal
E) anti-loyal
40) Mothers-to-be are potential users who will turn into heavy users of infant products and
services. By targeting mothers-to-be as future heavy users, producers of these products and
services are segmenting consumers on the basis of ________.
A) attitude
B) buyer-readiness stage
C) loyalty status
D) user status
E) benefits
41) If a buyer is loyal to two or three different brands of soap, this buyer's loyalty status can be
described as being among the ________.
A) switchers
B) shifting loyals
C) split loyals
D) hard-core loyals
E) antiloyals
42) Pete always buys Purina dog food for his dog because he believes that it is the best value for
the nutritional content. Pete's loyalty status is best described as ________.
A) split loyal
B) shifting loyal
C) consistent loyal
D) hard-core loyal
E) switcher
43) A company can learn a great deal by analyzing the degrees of brand loyalty. For example,
________ can show the firm which brands are most competitive with its own.
A) hard-core loyals
B) split loyals
C) shifting loyals
D) switchers
E) antiloyals
44) A company can learn a great deal by analyzing the degrees of brand loyalty. For example,
________ can help identify the products' strengths.
A) switchers
B) split loyals
C) antiloyals
D) shifting loyals
E) hard-core loyals
45) Effective target marketing requires that marketers use market segmentation, market
targeting, and market positioning to achieve success in the marketplace.
46) A market segment consists of a group of consumers who share a similar set of needs and
wants.
47) Customer cloning is the practice of identifying the key characteristics of a market segment
and then identifying multiple geographic areas where the majority of the population possesses
those characteristics.
48) Illustrations of personality segmentation would include culture-oriented, sports-centered, or
outdoor-oriented subsegments.
49) Local marketing reflects a growing trend called macromarketing.
50) A local service company has decided to segment its market based on occupation; therefore, it
has chosen a form of demographic segmentation for its approach.
51) Beltway Boomers are the nation's tech-savvy singles and couples living in fashionable
neighborhoods on the urban fringe.
52) Demographic variables are popular because they are often associated with consumer needs
and wants and they are easy to measure.
53) Life stage defines a person's age.
54) Income always predicts the best customers for a given product.
55) Members of the same generational cohort share the same major cultural, political, and
economic experiences and have similar outlooks and values.
56) Baby boomers are consumers who have been "wired" almost from birth — playing computer
games, navigating the Web, downloading music, connecting with friends via instant messaging
and mobile phones.
57) Members of Generation Y are generally open to overt branding practices and a "hard sell,"
making product placements in computer and video games a popular way to reach this cohort.
58) Unlike the more optimistic, team-oriented Gen Xers, Gen Yers are more pragmatic and
individualistic.
59) Baby boomers are less likely to associate retirement with "the beginning of the end" and see
it instead as a new chapter in their lives with new activities, interests, careers, or even
relationships.
60) The norms, language nuances, buying habits, and business practices of multicultural markets
need to be factored into the initial formulation of a marketing strategy, rather than added as an
afterthought.
61) Psychographics is the science of using psychology and demographics to better understand
consumers.
62) People in the same demographic group generally exhibit similar psychographic profiles.
63) The main dimensions of the VALS segmentation framework are consumer motivation and
consumer resources.
64) Everyone who buys a given product wants the same benefits from it.
65) The New Luxury goods category, which includes Kiehl's skin care and Kendall Jackson
wine, and is based on emotions and priced between average middle-market brands and
superpremium Old Luxury brands, is called accessible superpremium brands.
66) Brands like Victoria's Secret underwear and Kettle gourmet potato chips, which carry a
significant premium over middle-market brands, but are easy to trade-up to because they are
relatively low-ticket items in affordable categories, are called Masstige brands.
67) Believers favor stylish products that emulate the purchases of those with greater material
wealth.
68) Heavy users of a particular product are often a small percentage of the market but account
for a high percentage of total consumption.
69) With respect to loyalty status, if a consumer is loyal to two or three brands, he or she is
called shifting loyal.
70) Hard-core loyals can show the firm which brands are most competitive with its own.
71) Door-to-door workers in a political campaign use attitude to determine how much time to
spend with each voter.
72) There are several major segmentation variables that might be used by a marketer to address a
consumer market. If the marketer were to use the social class, psychographic lifestyle, and
readiness stage to segment its market, identify possible segmentation subcategories under each of
the three.
73) PRIZM was developed by Claritas Inc. What was the purpose of PRIZM?
74) Identify and describe the three main types of New Luxury products.
75) Briefly describe the characteristics of the Millennials.
76) Generation Y members are often turned off by overt branding practices and "hard sell." List
and provide examples for the different approaches tried by the marketers to reach and persuade
them.
