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c. Market density
d. Climate
108. Uber offers its customers “the smartest way to get around.” By stressing this notion and the ease and
convenience of the Uber experience of getting one where they need to go, the organization is establishing its:
a. value proposition.
b. key market characteristic.
c. target marketing approach.
d. market entry strategy.
109. Bobby Flay is a popular celebrity chef who is famous for his use of the grill to create his signature dishes.
Recently, Bobby Flay debuted a line of grilling accessories and believes these products will be successful
because he has a loyal following among men aged 30 to 60. What type of segmentation is utilized for this new
line of grilling accessories?
a. Demographic
b. Psychographic
c. Geographic
d. Benefit
110. Developing a relevant user profile is the first step in the market segmentation process. How are segment
profiles used to identify the typical customer in each segment?
a. Segment profiles are used to describe differences among members of a market segment, and to explain
similarities among members in separate market segments.
b. Segment profiles are used to describe differences among members of a market segment, and to explain
differences among members in separate market segments.
c. Segment profiles are used to describe similarities among members of a market segment, and to explain
similarities among members in separate market segments.
d. Segment profiles are used to describe preferences among members of a market segment, and to explain
preferences among members in separate market segments.
e. Segment profiles are used to describe similarities among members of a market segment, and to explain
differences among members in separate market segments.
111. The division of the total market into smaller, homogenous groups is called _____.
a. customer aggregation
b. market capitalization
c. market segmentation
d. brand segmentation
112. Procter and Gamble is seeking to target women aged 18 to 34 to influence their purchasing of shampoo and bath
gels. They selected the television network ABC Family and specifically airs commercials during the “Pretty Little Liars”
time slot. Which criteria of effective segmentation is Procter and Gamble utilizing?
a. Ability to effectively promote to the market segment
b. The market segment represents measurable purchasing power
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c. The segment matches Procter and Gamble’s marketing capabilities
d. The segment is sufficiently large to provide good profit potential
113. A _____ marketing strategy focuses on producing several products and pricing, promoting, and distributing
them with several marketing mixes designed to satisfy smaller segments.
a. mass
b. differentiated
c. societal
d. demographic
114. Cecile is an avid cook and enjoys spending time in the kitchen as well as watching shows on the Food
Network. She recently remodeled her kitchen and purchased new appliances. Since she enjoys cooking so
much, Cecile purchased a commercial range from a local restaurant supply store and it features double ovens
and 12 burners. Her contractor had to make some modifications to enhance the safety of this stove for use in
her home but no other changes were needed. What type of product is the stove in the context of this example?
a. Consumer
b. Business
c. Shopping
d. Convenience
115. Did you ever notice that there are many names for carbonated beverages? Consumers in different areas of the United
States might call a carbonated soft drink soda, pop, soft drink, cold drink, or coke (in a generic sense that covers all
carbonated beverages). Knowing this, marketers can change their terminology to suit the consumers. These differences
show the importance of what type of geographic segmentation?
a. Market region
b. Market climate
c. Market density
d. Marketing potential
116. A television commercial shows several enthusiastic teens smiling widely and speaking in turn directly to
the camera. Using the featured skincare product has changed their lives! It costs more than what you find in the
corner drugstore, but it is worth every penny! After weeks of trying one product after another, embarrassed by
acne breakouts and shy about socializing with others, now they have clear faces with a healthy-looking glow!
What form of product-related segmentation has driven the development of this marketing campaign?
a. Segmenting by geographic location
b. Segmenting by benefits sought
c. Segmenting by psychographics
d. Segmenting by brand loyalty
e. Segmenting by demographics
117. When a product is used in the production of another good that is destined for resale, the product is
considered as a(n):
a. consumer product.
b. business product.
c. end product.
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d. used product.
118. Iron ore and raw cotton are examples of:
a. personal products.
b. shopping products.
c. impulse products.
d. business products.
119. The perception and environment of gyms has evolved over the past few decades. While some male-
focused boxing and weight lifting gyms still exist, most workout facilities today are much broader in focus and
include dressing rooms, equipment, and classes for both men and women. One organization, though has carved
out a niche for itself by focusing on women. Curves specializes in serving the female market. It spears Curves’
primary segmentation approach is based on:
a. demographic segmentation.
b. geographic segmentation.
c. psychographic segmentation.
d. personal segmentation.
120. The tagline used by Walmart, “Save money. Live better” is an example of a positioning strategy that is
based on _____.
a. quality
b. attributes
c. product users
d. competitors
121. _____ defines consumer groups according to variables such as gender, age, income, occupation, education,
sexual orientation, household size, and stage in the family lifecycle.
a. Geographic segmentation
b. End-use segmentation
c. Product-based segmentation
d. Demographic segmentation
122. Four key approaches to segmentation are discussed in the text. Which of the following is NOT one of those
approaches?
a. Target segmentation
b. Geographic segmentation
c. Demographic segmentation
d. Psychographic segmentation
123. Market segmentation has interested you ever since your first marketing course, and you want to work for the type of
organization that uses this technique. This means you should avoid pursuing a job with:
a. Retail business organizations
b. Wholesale business organizations
c. Not-for-profit organizations
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d. Manufacturing business organizations
e. You could pursue a job with any of the above, since all would use market segmentation.
124. Undifferentiated marketing is also called _____.
a. societal marketing
b. micro marketing
c. concentrated marketing
d. mass marketing
125. Cody stopped by Ferrari of Beverly Hills to look at the new Ferrari 488 Spider that just came in. Cody is
obsessed with cars and would love to buy the 488, but there is a slight problem. Cody is a full-time student in
his senior year of college and works part time at Olive Garden where he earns $7.75 an hour. The new 488 is
listed for sale for $429,000! Cody really should not be considered part of the market for the Ferrari because he:
a. does not have the purchasing power.
b. is not old enough to legally buy a car.
c. is not willing to buy the car.
d. does not have the authority to purchase.
126. While different approaches to segmentation are available to marketers, sometimes a combination of these
approaches might be very effective. One such approach blends demographics, consumer lifestyle behavior,
media usage, and shopping habits to place households into one of 66 identified segments. This approach is
known as:
a. PRIZM.
b. psycho-demographics.
c. demo-geo segmentation.
d. multimedia classification system.
127. Recently a new product named Powerful Yogurt was introduced in the United States. This product is
targeted toward men who often view yogurt as only for women. In fact, Powerful Yogurt is being referred to as
“Brogurt” to emphasize its manliness. Powerful Yogurt is using:
a. demographic segmentation.
b. geographic segmentation.
c. psychographic segmentation.
d. behavioral segmentation.
128. Cecile, the chef at Chez Cecile, shops at the same farmers market that you do to buy fresh items for her
restaurant. Cecile seems very knowledgeable about the vegetables she purchases, and you have started to buy
the same items she does for your own consumption. When you buy vegetables for your own use, they would be
considered:
a. a consumer product.
b. a professional service.
c. an impulse purchase.
d. a business product.
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129. The tagline used by Blue Jet cleaners, “Pay for Performance,” is an example of a positioning strategy that is
based on _____.
a. product homogeneity
b. product users
c. price/quality
d. competitors
130. Cecile, the chef at Chez Cecile, shops at the same farmers market that you do to buy fresh items for her
restaurant. Cecile seems very knowledgeable about the vegetables she purchases, and you have started to buy
the same items she does for your own consumption. When Cecile buys vegetables for her restaurant, they
would be considered:
a. a business product.
b. a professional service.
c. an impulse purchase.
d. a consumer product.
131. June knows that the students who patronize her campus ice-cream shop are looking to socialize as much as to
consume a treat. In her advertising, she shows images of customers enjoying each other’s company. June is segmenting
based on:
a. Usage
b. Loyalty
c. 80/20 principle
d. Benefits sought
e. Pareto’s Law
132. Many retail chains have stores across the country or even globally. For the most part, these stores are
centrally controlled and have standard store practices. However, there are times when characteristics of local
markets influence the product mix. For example, stores in Florida may carry swimwear year around, while
stores in Minnesota might only have these items a few months in the spring and summer. It appears these
retailers are using:
a. geographic segmentation.
b. behavioral segmentation.
c. demographic segmentation.
d. psychographic segmentation.
133. 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. Despite being very large and with high aggregate purchasing power the cost structure of serving this
market has not been financially attractive to U.S. firms. 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. profitable.
b. significant in size and purchasing power.
c. well focused.
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d. cooperative with the customer.
134. In the early 1900s, Ford Motor Company offered a single car for all customers – the Model T. Henry Ford
is claimed to have said “Any customer can have a car painted any color that he wants so long as it is black.” At
that point, Ford took a(n) ______ approach.
a. undifferentiated marketing
b. target marketing
c. market concentration
d. consolidated
135. An undifferentiated marketing strategy:
a. involves developing different marketing mixes for different segments.
b. benefits from the control and efficiency of short production runs.
c. is also known as a concentrated marketing strategy.
d. is efficient from a production point of view.
136. Frequent flyer programs are often used by airlines to encourage consumers to make repeat purchases since
members can earn free trips based on their accumulated points are an example of _____.
a. segmentation by benefits sought
b. brand loyalty segmentation
c. psychographic segmentation
d. socioeconomic segmentation
137. Bass Pro Shops retail stores have to be experienced in person for the full effect. Bass Pro is much more
than just a retail store, as they include massive aquariums and fabulous displays, all directed toward people with
an interest in outdoor sporting activities. Bass Pro also offers their Outdoor Skills Workshops, where customers
can refine their skill in activities such as fly fishing and archery. If you enjoy hunting, fishing, and boating,
Bass Pro Shop is the place for you! Bass Pro Shop is using:
a. psychographic segmentation.
b. geographic segmentation.
c. demographic segmentation.
d. behavioral segmentation.
138. Marketers adopt different strategies in order to promote their products in the market. But what is a market?
Select the best definition of market from the choices below:
a. Specific people and organizations likely to buy certain goods and services
b. People and organizations who regulate the manufacture of goods and services available for purchase
c. Spaces or outlets where goods and services can be purchased
d. People and organizations with purchasing power, authority, and willingness to buy goods and services
e. Goods and services that serve both the consumer and business
139. North Face is a well-known brand affiliated with active lifestyles such as backpacking, snow skiing, and
camping. The company’s products are available in a wide number of retail outlets as well as their company-
owned specialty stores. The mix of products sold in the retail outlets varies widely depending on the market
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location. For example, stores in Northern California stock technical products suitable for customers who are
avid backpackers, hikers, and rock climbers while retailers in the Midwest states offer a greater selection of
apparel. What type of segmentation is reflected by stores carrying the North Face brand?
a. Geographic
b. Age-related
c. Ethnic-related
d. Product-related
140. A basic distinction in types of markets is between markets that purchase the item for their own personal use
and those that purchase the item for use either directly or indirectly in the production or distribution of other
goods or services for resale. For example, when Logan stopped at the gas station to fill up his car before
heading home for the weekend, they gas was for his personal use. However, when Brandon filled up his car
with gas before a night of working as an Uber driver the gas was actually used to provide a service for sale. In
this case, gas was:
a. a consumer product for Logan and a business product for Brandon.
b. a marketing product for Logan and a commercial good for Brandon.
c. a consumer product for Logan and a business product for Brandon.
d. gasoline is always a consumer product by definition.
141. A company that chooses to focus its efforts on satisfying only one market segment for profit is using a(n)
_____ strategy.
a. niche marketing
b. societal marketing
c. undifferentiated marketing
d. mass marketing
142. Madeline always travels on Delta Airlines. Even though other airlines might have a more convenient flight
schedule or a slightly lower cost, Madeline wants her miles! Delta, like almost all airlines, offers a “frequent
flyer” program, where travelers accumulate miles for each flight in order to earn free flights or upgrades. In
Delta’s case, the SkyMiles program miles never expire and can take Madeline to more than 1,000 destinations.
Delta sets the reward system to benefit those that return to Delta for each flight. By examining Skymiles data
Delta can offer incentives, special fares, and inform participants of new destinations. Delta is using a ______
approach to segmentation.
a. brand loyalty
b. geographic
c. psychographic
d. benefit sought
143. Which of the following segmentation approaches is most likely to help marketers quantify aspects of
consumers’ personalities and lifestyles to create goods and services for a target market?
a. Psychographic segmentation
b. Demographic segmentation
c. Geographic segmentation
d. Product-based segmentation
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144. The most common method of market segmentation is:
a. product-based segmentation.
b. demographic segmentation.
c. economic segmentation.
d. psychographic segmentation.
145. A technology company that makes computers for professional use is trying to segment its customers. The
company asked some professional computer users to evaluate the importance of various computer attributes that
influence their purchase decisions and then used this data to segment the consumers based on similar response
patterns. This is an example of segmentation by:
a. brand loyalty.
b. usage rates.
c. expenditure pattern.
d. benefits sought.
146. Cadillac has strategically sought to become known as a prestige brand among 30-to 50-year-olds and
routinely uses television advertising to showcase the high quality and luxury attributes of the new models. It
seeks to use _______ to separate the brand from other U.S. brands and be perceived more similarly to European
models such as Audi and BMW.
a. positioning
b. segmentation
c. an undifferentiated marketing approach
d. a concentrated strategy
Indicate one or more answer choices that best complete the statement or answer the question.
147. You’ve started a business on your college campus to sell luxurious blue dorm room rugs with the college logo. You
plan to target male freshmen who come from local towns, like the color blue, can afford luxury products, want rugs for
their rooms, and are enthusiastic about boosting the school. You can easily and efficiently promote to all freshmen,
including this segment, with Facebook and other social media tools. But your marketing professor cautions that you may
be unable to meet certain criteria for effective segmentation. Which criteria does she cite?
a. The segment must present measurable purchasing power and size.
b. The marketer must be able to promote effectively to the segment.
c. The segment must be large enough to offer significant profit potential.
d. The segment must be certified.
e. Your plan is unlikely to meet any of the criteria for effective segmentation.
148. The Bates Lighting Company has two divisions, business and consumer products. Because of poor profits, it may
downsize the consumer division. This could mean loss of jobs for people involved with the marketing of:
a. overhead lighting for hospital operating rooms.
b. flashlights for buildings that lose power.
c. designer lighting for furniture showrooms.
d. desk lamps for offices or college dorms.
e. street lights.
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149. What is the use of psychographic segmentation to marketers?
150. Explain how each product listed below can be classified as either a consumer and/or business product.
1. Shampoo
2. Steel bars for concrete reinforcement
3. Lawn mower
4. Computer
5. Automobile
151. What is geographic segmentation? How is it useful for marketers?
152. Differentiate between a consumer product and a business product. Give examples.
153. Define market segmentation. Discuss its role in developing an effective marketing strategy.
154. Describe the three approaches to product-related segmentation.
155. What is psychographic segmentation? What is the most common method for developing psychographic
profiles of a population?
156. Describe how psychographic segmentation is a good supplement to segmentation by demographic or
geographic variables.
157. Describe the three basic strategies for reaching target markets.
158. What is family lifecycle? Why do marketers segment their markets by family lifecycle stages?
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Answer Key
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