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• Unconventional sports — Chick-fil-A sponsored the National Amateur Dodgeball
Association, “a recreational pursuit for nontraditional sport enthusiasts.”
77) Identify the four market segment groups based on brand loyalty status and list what a
company can learn from analyzing the degrees of brand loyalty.
78) Local marketing reflects a growing trend called grassroots marketing. What are the
characteristics of grassroots marketing?
79) What is customer cloning and how is it used?
80) Not everyone is in favor of local marketing. Identify two arguments made against local
marketing.
81) Identify ways in which shopping behaviors differ between men and women.
82) Increasingly, companies are finding that their markets are “hourglass shaped.” What does this
mean for consumers and for marketers?
83) Although we can make distinctions between them, different generational cohorts also
influence each other. Give an example of this.
84) Characterize psychographic segmentation.
85) The VALS segmentation system has evolved into an eight-part typology. List the categories
of the eight-part typology.
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86) Professor Albert advises his students to purchase the book Microbiology by Pelczar, to
acquaint themselves with the fundamentals of microbiology. What role does he play in the
buying decision of his students?
87) List the four groups of consumers based on loyalty status.
88) Consumer attitudes are an interesting way to segment a market. What are the five different
consumer attitudes about a product that can be found in the market?
89) If a marketer is seeking to segment a business market, which of the following variables is
generally felt to be the most important?
A) personal characteristics
B) demographic variables
C) situational factors
D) operating variables
E) purchasing approaches
90) Urgency, specific application, and size of order are examples of ________ segmentation
variables for business markets.
A) situational factors
B) demographic
C) purchasing approaches
D) personal characteristics
E) operating variables
91) In segmenting its markets, an aluminum company first looked at which end-use market to
serve: automobile, residential, or beverage containers. This is an example of ________.
A) macrosegmentation
B) microsegmentation
C) geographic segmentation
D) global segmentation
E) short-term segmentation
92) A marketer is interested in segmenting a business market on ________ if the marketer
intends to segment the market based on industries and geographical areas to serve.
A) demographic variables
B) situational factors
C) operating variables
D) purchasing approaches
E) personal characteristics
93) A marketer is interested in segmenting a business market based on urgency of delivery and
the size of the order. Which of the following major segmentation variables would the marketer
most likely use to assist with the task?
A) purchasing approaches
B) situational factors
C) operating variables
D) personal characteristics
E) demographic variables
94) A marketer is interested in segmenting a business market based on technology and customer
capabilities. Which of the following major segmentation variables would the marketer most
likely use to assist with the task?
A) demographic variables
B) purchasing approaches
C) situational factors
D) personal characteristics
E) operating variables
95) A marketer is interested in segmenting a business market on ________ if the marketer
intends to eventually segment the market based on loyalty and attitudes toward risk.
A) situational factors
B) purchasing approaches
C) personal characteristics
D) operating variables
E) demographic variables
96) A marketer interested in segmenting a business market based on ________ intends to
eventually segment the market based on power structure and nature of existing relationship.
A) situational factors
B) purchasing approaches
C) personal characteristics
D) operating variables
E) demographic variables
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97) A company can be said to have used ________ if the company distinguished among
customers buying on the basis of price, service, and quality.
A) global segmentation
B) microsegmentation
C) short-term segmentation
D) macrosegmentation
E) geographic segmentation
98) A ________ offering consists of two parts: a naked solution and discretionary options.
A) differentiated market
B) flexible market
C) rigid market
D) vertical market
E) horizontal market
99) Anderson and Mervin have urged marketers to present flexible market offerings to all
members of a segment. A flexible market offering consists of two parts. Which part contains the
product and service elements that all segment members value?
A) naked solution
B) discretionary solution
C) maximum solution
D) pseudo solution
E) virtual solution
100) Purchasing approaches segmentation variables in the business marketplace include
technology, user and nonuser status, and general purchasing policies.
101) Situational factor segmentation variables in the business marketplace include urgency,
specific application, and size of order.
102) With respect to market offerings, if a marketer emphasizes a naked solution, he or she is
emphasizing the product and service elements that all segment members value.
103) What are some examples of situational factors that can be used to segment business
markets?
104) A flexible market offering consists of two parts. Identify and describe these two parts.
105) Which of the following statements is true about the five forces identified by Michael Porter
that determine the intrinsic long-run attractiveness of a market or market segment?
A) A segment is unattractive if the company’s suppliers are unable to raise prices or reduce
quantity supplied.
B) A segment is unattractive if buyers possess strong or growing bargaining power.
C) A segment is attractive when there are actual or potential substitutes for the product.
D) A segment is attractive if it already contains numerous, strong, or aggressive competitors.
E) The most attractive segment is one in which entry barriers are low and exit barriers are high.
106) The most attractive segment is one in which entry barriers are low and exit barriers are
high.
107) A segment is attractive when there are actual or potential substitutes for the product.
108) A segment is unattractive if the company’s suppliers are able to raise prices or reduce
quantity supplied.
109) All attempts to target marketing to children, minorities, or other special segments are
discriminatory and unethical.
110) List the five forces identified by Michael Porter that determine the intrinsic long-run
attractiveness of a market or market segment.
111) List the threats posed by the five forces identified by Michael Porter that determine the
intrinsic long-run attractiveness of a market or market segment.
112) Give an example of how a company might target products to children in an ethical way.
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113) During which step of the segmentation process would the marketer group customers into
segments based on similar needs and benefits sought by the customer in solving a particular
consumption problem?
A) Step 2 — segment identification
B) Step 3 — segment attractiveness
C) Step 6 — segment “acid test”
D) Step 1 — needs-based segmentation
E) Step 7 — marketing-mix strategy
114) If an organization’s marketing department wants to create “segment storyboards” to test the
attractiveness of each segment’s positioning strategy, it would most likely occur in the ________
step of the segmentation process.
A) needs-based segmentation
B) segment identification
C) segment profitability
D) segment “acid test”
E) marketing-mix strategy
115) In the ________ step of the market segmentation process, the marketer evaluates the
segment using criteria such as market growth and market access.
A) need-based segmentation
B) segment identification
C) segment attractiveness
D) segment profitability
E) segment “acid test”
116) In the ________ step of the market segmentation process, the marketer determines which
demographics, lifestyles, and usage behaviors make each needs-based segment distinct and
identifiable.
A) segment “acid test”
B) segment attractiveness
C) segment profitability
D) need-based segmentation
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E) segment identification
117) According to the ________ criterion for useful market segments, a segment should be the
largest possible homogenous group worth going after with a tailored marketing program.
A) measurable
B) substantial
C) accessible
D) differentiable
E) actionable
118) The characteristic of useful market segments that relates to whether the segments can be
effectively reached and served is whether the segment is ________.
A) measurable
B) substantial
C) differentiable
D) accessible
E) actionable
119) If your assignment was to create a value proposition and product-price positioning strategy
for each segment, based on the segment’s unique customer needs and characteristics, you would
be in which of the following steps of the segmentation process?
A) needs-based segmentation
B) segment identification
C) segment attractiveness
D) segment positioning
E) segment “acid-test”
120) To meet the ________ criterion of useful market segments, it must be possible to formulate
effective programs for attracting and serving the segments.
A) measurable
B) substantial
C) accessible
D) differentiable
E) actionable
121) If married and unmarried women respond similarly to a sale on perfume, these hypothetical
segments fail the ________ criterion for useful market segments.
A) measurable
B) substantial
C) accessible
D) differentiable
E) actionable
122) The last step in the seven-step marketing segmentation process would be to develop a
marketing-mix strategy reflective of segment positioning strategies.
123) To be useful, market segments must be measurable.
124) Briefly describe the steps in the segmentation process.
125) To be useful, market segments must rate favorably on five key criteria. What are those
criteria?
126) In evaluating different market segments, the firm must look at two factors: the segment’s
overall attractiveness and the ________.
A) company’s objectives and resources
B) effectiveness of the suppliers
C) flexibility of legal rules governing the business
D) socioeconomic infrastructure
E) global nature of the product
127) In ________ marketing, the firm ignores segment differences and goes after the whole
market with one offer.
A) niche
B) mass
C) guerrilla
D) segmented
E) differentiated
128) If a marketing manager observes that his or her market shows no natural segments and
consumers seem to have roughly the same preferences, the marketing manager will most likely
be faced with a ________ preferences pattern.
A) homogeneous
B) heterogeneous
C) diffused
D) clustered
E) scattered
129) In ________ marketing, the firm operates in several market segments and designs different
products for each segment.
A) individual
B) undifferentiated
C) differentiated
D) concentrated
E) niche
130) General Motors, a leading American multinational automaker, sells cars for every purpose,
budget, and personality. This is an example of ________ marketing.
A) undifferentiated
B) differentiated
C) concentrated
D) niche
E) micro
131) Coca-Cola’s original marketing strategy that offered a single drink Coca-Cola Classic in a
single sized bottle with the advertising theme “Coke is it,” is an example of ________ marketing.
A) concentrated
B) niche
C) differentiated
D) micro
E) undifferentiated
132) Marketers usually identify niches by ________.
A) dividing a segment into subsegments
B) conducting VALS tests
C) allowing consumers to gravitate toward product brands
D) examining the demographics section of the handbook of marketing
E) producing products that can be used in a variety of ways
133) ________ combines operationally driven mass customization with customized marketing in
a way that empowers consumers to design the product service offering of their choice.
A) Consumptionism
B) Viral marketing
C) Virtual marketing
D) Regionalization
E) Customerization
134) Volkswagen concentrates on the small-car market and Porsche on the sports car market.
These would be examples of what is called ________.
A) single-segment concentration
B) selective specialization
C) product specialization
D) market specialization
E) full market coverage
135) All of the following are benefits of following the ________ approach to target market
selection: a strong knowledge of the segment’s needs, a strong market presence, operating
economies through specializing in production, distribution, and promotion.
A) single-segment concentration
B) selective specialization
C) product specialization
D) market specialization
E) full market coverage
136) When a symphony orchestra targets people who have broad cultural interests, rather than
only those who regularly attend concerts, the orchestra is targeting ________.
A) market mavens
B) strategic segments
C) supersegments
D) occasion segments
E) psychodemographic segments
137) Which of the following best represents the chief advantage of pursuing a selective
specialization multisegment strategy?
A) It makes the company almost bulletproof to competitors’ actions.
B) It diversifies the firm’s risk.
C) It creates synergy between markets.
D) It is a low-cost strategy.
E) It treats all buyers the same and, therefore, lowers promotion costs.
138) Which of the following is NOT an example of a descriptive characteristic used to define
segments?
A) consumer demographics
B) consumer responses to benefits
C) consumer geography
D) consumer psychographics
E) family life cycle
139) Josh separated people who wanted a high quality lawn mower from people who wanted a
low priced lawn mower, then saw if different characteristics were associated with each
consumer-response segment. Josh was defining segments using ________ considerations.
A) descriptive
B) demographic
C) psychographic
D) behavioral
E) geographic
140) An undifferentiated marketing approach to full market coverage designs a marketing
program for a product with a superior image that can be sold to the broadest number of buyers.
141) An attractive niche consists of customers having a distinct set of needs.
142) The ultimate level of segmentation leads to “segments of one,” “customized marketing,” or
“one-to-one marketing.”
143) Companies following a market specialization strategy offer one product to as many markets
as possible.
144) A company is customerized when it is able to respond to individual customers by
customizing its products, services, and messages on a one-to-one basis.
145) Briefly describe single-segment concentration with an example.
146) Briefly describe product specialization and market specialization.
147) List the three premises on which Anderson’s long tail theory is based and the two aspects of
Internet shopping that support these premises.
148) Explain the concept of mass marketing.
149) Explain the concept of differentiated marketing.
150) Assume that you have decided to use a niche strategy to advance your marketing goals.
Characterize an attractive niche.
151) A new trend in marketing is toward customerization. Describe what customerization is and
how marketers are using it.