Question 1

People\'s diverse interests and backgrounds divide them into numerous groups with distinct needs and wants, a condition most accurately described as ________. A) market aggregation  B) market positioning  C) economic aggregation  D) disintermediation  E) market fragmentation

Accepted Answer

E) market fragmentation

Question 2

Marketers must balance the ________ of mass marketing with the ________ of offering each individual customer exactly what he wants. A) efficiency; effectiveness B) scale; positioning C) investment; cost D) cost; investment  E) positioning; scale

Accepted Answer

A) efficiency; effectiveness

Question 3

Which of the following statements about the steps in the target marketing process is true?  A) The first step in the target marketing process is setting marketing objectives.  B) There are four steps in the target marketing process.  C) The second step in the target marketing process is the identification of all segmentation variables.  D) The final step in the target marketing process is positioning.  E) The target marketing process is not related to positioning.

Accepted Answer

D) The final step in the target marketing process is positioning.

Question 4

What are the steps, in order, of the target marketing process? A) segmentation, positioning, targeting B) segmentation, targeting, and positioning C) targeting, segmentation, and positioning D) targeting, positioning, and segmentation E) positioning, segmentation, and targeting

Accepted Answer

B) segmentation, targeting, and positioning

Question 5

Which of the following is the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics? A) acculturation  B) segmentation  C) market fragmentation  D) market aggregation  E) positioning

Accepted Answer

B) segmentation

Question 6

Age, ethnicity, place of residence, and social class are all examples of ________.  A) segmentation variables  B) positioning strategies  C) market fragment strategies D) psychographics E) targeting strategies

Accepted Answer

A) segmentation variables

Question 7

Which of the following best defines demographics? A) statistics that can be used to segment populations on the basis of what people do with a product  B) statistics that can be used to segment populations on the basis of when people use a product  C) qualitative data that can be used to explain why seemingly homogeneous consumer groups do not share core characteristics D) statistics that can be used to segment populations on the basis of shared attitudes, opinions, and interests  E) statistics that measure observable aspects of a population

Accepted Answer

E) statistics that measure observable aspects of a population

Question 8

Which of the following is NOT an example of a demographic segmentation variable?  A) lifestyle  B) income and social class  C) ethnicity  D) gender  E) age

Accepted Answer

A) lifestyle

Question 9

Marketers often use generational marketing because members of a generation tend to share the same ________. A) lifestyle  B) income and social class  C) outlook and priorities D) psychographics and usage patterns E) geodemographics

Accepted Answer

C) outlook and priorities

Question 10

The group of American consumers born between 1979 and 1994 are often called ________.  A) baby busters  B) the silent majority  C) Generation Y  D) tweens  E) Generation X

Accepted Answer

C) Generation Y

Question 11

Which of the following is the most accurate generalization of members of Generation Y? A) Many people in this segment seem determined to have stable families after growing up as latchkey children. B) Members of this generation are currently responsible for the majority of new start-up businesses in the United States. C) Members of this generation were born in the years immediately following the end of World War II. D) Members of this generation are willing to spend money to stay young, healthy, and attractive. E) Members of this generation are more difficult to reach through television advertising than members of older generations are.

Accepted Answer

E) Members of this generation are more difficult to reach through television advertising than members of older generations are.

Question 12

Which generation was referred to as \"busters\" and was thought of as slackers who are cynical about marketing? A) Generation Y B) Generation X C) Baby boomers D) Millenial E) Generation I

Accepted Answer

B) Generation X

Question 13

The group of American consumers born between 1965 and 1978 are called ________.  A) baby boomers  B) the silent majority  C) Generation Y  D) tweens  E) Generation X

Accepted Answer

E) Generation X

Question 14

Baby boomers ________.  A) were born between 1965 and 1976  B) are currently in their 30s and 40s C) are important to marketers because of the size and wealth of the segment  D) are 75 or older  E) are the parents of Generation X, not Generation Y

Accepted Answer

C) are important to marketers because of the size and wealth of the segment

Question 15

________ is a term for men who are keenly interested in fashion, home design, gourmet cooking, and personal care. A) Tween B) Buster C) Metrosexual D) Bachelor E) Slacker

Accepted Answer

C) Metrosexual

Question 16

The supermarket sells boxes of pink diapers and blue diapers. This is an example of segmenting by ________. A) gender B) age C) ethnicity D) social class E) geocoding

Accepted Answer

A) gender

Question 17

Which of the following is a true statement about trends related to gender segmentation? A) The education and income gap between men and women has closed in the latest recession. B) In the recent recession, women held about three in four of the jobs that were lost. C) Men are now increasingly likely to marry women with more education and income than they have. D) In recent decades, the economic gains of marriage have been greater for women than men. E) Women are now increasingly likely to marry men with more education and income than they have.

Accepted Answer

C) Men are now increasingly likely to marry women with more education and income than they have.

Question 18

Which of the following best explains why marketers do not consider social class segments as strictly as they once did? A) Many consumers buy according to the social class image they wish to portray rather than according to where they actually fall in the social class framework. B) Due to the Great Recession, members of the upper class have become members of the middle class, and members of the middle class have become members of the lower class. C) Data related to social class is more complicated and difficult to obtain and analyze than it once was. D) Social class in the United States is more related to education and family history than to wealth. E) Members of the upper and middle classes are unlikely to be attracted to any products marketed toward members of the lower classes.

Accepted Answer

A) Many consumers buy according to the social class image they wish to portray rather than according to where they actually fall in the social class framework.

Question 19

African Americans, Hispanic Americans, and Asian Americans are all examples of ________ demographic segments. A) life cycle B) psychographic C) ethnicity D) social class E) geocoding

Accepted Answer

C) ethnicity

Question 20

Which statement is NOT true about the Hispanic American segment? A) The Hispanic American segment is becoming a less important segment to marketers.  B) The Hispanic American segment is growing rapidly.  C) Hispanic Americans tend to be brand loyal, especially to products made in their country of origin.  D) Hispanic Americans are a relatively young segment.  E) Hispanic American households are larger on average than other U.S. households.

Accepted Answer

A) The Hispanic American segment is becoming a less important segment to marketers.

Question 21

The Asian American segment of the population ________.  A) is the largest ethnic market segment  B) does not yet receive significant attention from marketers C) has declined in the last 10 years D) is the fastest growing minority group in the United States  E) is too geographically dispersed to form a meaningful market segment

Accepted Answer

D) is the fastest growing minority group in the United States

Question 22

The management practice of ________ involves actively seeking people of different races, sexes, ethnic groups, and religions in an organization\'s employees, customers, suppliers, and distribution channel partners. A) geodemography B) cultural diversity C) ethnic segmentation D) psychography E) social networking

Accepted Answer

B) cultural diversity

Question 23

Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be ________ segmentation. A) place of residence B) psychographic C) usage D) positioning E) social class

Accepted Answer

A) place of residence

Question 24

Which of the following is a segmentation technique that combines geography with demographics? A) geocoding B) geodemography C) geodiversity D) regional generation E) psychographics

Accepted Answer

B) geodemography

Question 25

Companies can customize Web advertising by ________ so that people who log on in different places will see ad banners for local businesses. A) geocoding B) geodemography C) geodiversity D) psychographics E) usage

Accepted Answer

A) geocoding

Question 26

Which of the following most accurately describes PRIZM? A) a method of removing heterogeneous variables from a target market  B) a method of data mining used to implement market development strategies  C) a database that classifies the U.S. population into segments based on socioeconomic data and lifestyle attributes D) a database that classifies the international population into segments based on demographic and geographic characteristics E) a positioning strategy used in the introduction of new consumer products

Accepted Answer

C) a database that classifies the U.S. population into segments based on socioeconomic data and lifestyle attributes

Question 27

________ variables segment markets in terms of shared activities, interests, and opinions.  A) Demographic  B) Ethnographic  C) Geodemographic  D) Socioeconomic  E) Psychographic

Accepted Answer

E) Psychographic

Question 28

The division of buyers into groups based on lifestyle or personality characteristics is ________ segmentation. A) behavioral B) psychographic C) values D) demographic E) needs

Accepted Answer

B) psychographic

Question 29

________ is a well-known system based on psychological traits that correlate with consumer behavior; it divides the entire U.S. population into segments and then sells pieces of this information to clients for specific strategic applications.  A) VALS2  B) Decitica C) AIO D) PRIZM  E) NAICS

Accepted Answer

A) VALS2

Question 30

Which of the following most accurately describes VALS2? A) a system used for psychographic segmentation  B) a database of people who have purchased similar products  C) a strategy for implementing geodemographic segmentation  D) a method of confirming that a chosen target market is representative of the ideal market segment  E) a method of removing heterogeneous variables from a target market

Accepted Answer

A) a system used for psychographic segmentation

Question 31

Which three primary consumer motivations are key to the VALS2 system? A) faith, family, and finances B) age, gender, and ethnicity C) place of usage, time of usage, and frequency of usage D) ideals, achievement, and self-expression E) income, education, and geographic location

Accepted Answer

B) age, gender, and ethnicity

Question 32

________ segmentation variables classify consumers on the basis of how they act toward, feel about, or use a product.  A) Demographic  B) Behavioral  C) Geodemographic  D) Socioeconomic  E) Psychographic

Accepted Answer

B) Behavioral

Question 33

Markets can be segmented into group of nonusers, ex-users, potential users, heavy users, and moderate users of a product. This is an example of ________ segmentation. A) behavioral B) occasion C) demographic D) psychographic E) geocoding

Accepted Answer

A) behavioral

Question 34

The 80/20 rule is most directly related to ________ segmentation.  A) demographic  B) behavioral  C) geodemographic  D) socioeconomic  E) psychographic

Accepted Answer

B) behavioral

Question 35

According to the long tail approach to selling, ________. A) the Internet provides fewer opportunities for segmenting markets B) companies can make the most money by focusing on the \"bottom-of-pyramid\" market C) companies should focus on the 20 percent of customers who purchase the greatest volume of their product D) companies should focus on the 80 percent of customers who purchase the greatest volume of their product E) companies can make money by selling small amounts of items that only a few people want

Accepted Answer

E) companies can make money by selling small amounts of items that only a few people want

Question 36

Which of the following is the best example of the long tail approach to selling? A) Nearly 20% of the videos delivered by Netflix are older or obscure titles from its vast collection of videos. B) Kraft Foods focuses on the 20% of U.S. households that purchase 80% of the Miracle Whip the company markets. C) Barnes & Noble stocks the most popular books and magazines in its retail stores. D) Google lets advertisers target certain ads to certain segments of search engine users. E) Staples segments its business-to-business markets based on sales volume.

Accepted Answer

A) Nearly 20% of the videos delivered by Netflix are older or obscure titles from its vast collection of videos.

Question 37

Which type of segmentation can center on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item? A) behavioral B) psychographic C) needs D) demographic E) geocoding

Accepted Answer

A) behavioral

Question 38

During tax season, you\'re likely to see more TurboTax ads on Google pages, even if you aren\'t searching for tax software. This is an example of ________ segmentation. A) geodemographic B) psychographic C) usage occasion D) demographic E) geocoding

Accepted Answer

C) usage occasion

Question 39

Business-to-business marketers who look at the size of firms in terms of total sales or number of employees are using ________ to segment their market. A) organizational psychographics B) organizational demographics C) organizational culture D) behavior variables E) usage variable

Accepted Answer

B) organizational demographics

Question 40

Which of the following is the process of evaluating and selecting the most viable market segment to enter? A) segmentation B) differentiation C) targeting D) market mixing E) positioning

Accepted Answer

C) targeting

Question 41

A viable target market should ________.  A) have needs that can adequately be served by the marketer  B) not be reachable by other organizations  C) have the same needs as similar-sized groups  D) be the most profitable possible target market E) be the largest possible market

Accepted Answer

A) have needs that can adequately be served by the marketer

Question 42

When the size and purchasing power of a target segment can be determined, it possesses the requirement of being ________. A) measurable B) accessible C) substantial D) differentiable E) profitable

Accepted Answer

A) measurable

Question 43

To evaluate the different target segments your company is considering, you would look at all of the following factors EXCEPT which one?  A) segment size B) segment growth C) segment reachability D) company culture  E) company resources

Accepted Answer

D) company culture

Question 44

A(n) ________ would probably include customer demographics, location, lifestyle information, and a description of how frequently the customer buys the product.  A) geocode B) NAICS classification C) segment profile  D) internal market audit  E) customer guide

Accepted Answer

C) segment profile

Question 45

A company that uses a(n) ________ targeting strategy is appealing to a broad spectrum of people.  A) fragmented  B) undifferentiated  C) concentrated  D) differentiated  E) customized

Accepted Answer

B) undifferentiated

Question 46

Mass marketers such as Walmart often ignore market segment differences and target the whole market with one offer. What is this approach to targeting? A) undifferentiated targeting B) differentiated targeting C) target marketing D) concentrated targeting E) mass customization

Accepted Answer

A) undifferentiated targeting

Question 47

Which of the following best explains why a company would adopt an undifferentiated targeting strategy when there is so much evidence of the benefits of a differentiated strategy?  A) to more efficiently focus on its CRM strategy  B) to remove the need for disintermediation  C) to move a product to the next stage of its product life cycle  D) to take advantage of economies of scale  E) to reach the underserved \"bottom-of-pyramid\" consumers

Accepted Answer

D) to take advantage of economies of scale

Question 48

Using a ________ targeting strategy, a company develops one or more products for each of several customer groups with different product needs. A) fragmented  B) homogeneous  C) custom D) differentiated  E) mass customization

Accepted Answer

D) differentiated

Question 49

When a firm offers one or more products to a single segment, it is using a ________ strategy. A) fragmented  B) homogeneous  C) custom marketing D) mass customization E) concentrated targeting

Accepted Answer

E) concentrated targeting

Question 50

An industrial manufacturer that works with one or a few large clients and develops products that only these clients will use is most likely to implement a(n) ________ strategy. A) undifferentiated targeting  B) homogeneous  C) custom marketing D) bottom-of-pyramid E) differentiated targeting

Accepted Answer

C) custom marketing

Question 51

Which of the following is the narrowest strategy? A) undifferentiated targeting B) custom marketing C) differentiated targeting D) concentrated targeting E) mass marketing

Accepted Answer

B) custom marketing

Question 52

Using ________, a company modifies a basic good or service to meet the needs of a specific individual customer. A) undifferentiated targeting  B) positioning C) custom marketing D) mass customization E) differentiated targeting

Accepted Answer

D) mass customization

Question 53

________ means developing a marketing strategy aimed at influencing how a particular market segment perceives a good or service in comparison to the competition.  A) Concentrated targeting  B) Positioning  C) Benefit segmentation  D) Mass customization  E) Customerization

Accepted Answer

B) Positioning

Question 54

A product\'s position is based on important attributes as perceived by ________. A) suppliers B) competitors C) market conditions D) target consumers E) resellers

Accepted Answer

D) target consumers

Question 55

Which of the listed choices is NOT a positioning task?  A) identifying a set of possible competitive advantages B) surveying frequent uses of the product C) analyzing competitors\' positions D) finalizing the marketing mix E) evaluating responses to the marketing mix

Accepted Answer

B) surveying frequent uses of the product

Question 56

The first step in developing a positioning strategy is to ________.  A) set the marketing communications budget  B) identify segmentation variables  C) analyze the competitors\' positions in the marketplace  D) describe a product with a competitive advantage  E) create target markets

Accepted Answer

C) analyze the competitors\' positions in the marketplace

Question 57

Superior image, unique product features, and better service are all examples of ________. A) brand personalities B) brand positions C) perceptual maps D) competitive advantages E) customer touchpoints

Accepted Answer

D) competitive advantages

Question 58

Once a(n) ________ is set, the next step in positioning is for marketers to finalize the marketing mix. A) segmentation variable  B) positioning strategy  C) demographic strategy  D) customer relationship management system E) concentrated target

Accepted Answer

B) positioning strategy

Question 59

A(n) ________ is a distinct image that captures the character and benefits of a good or service.  A) perceptual map B) target market  C) brand personality  D) segment profile  E) trade promotion

Accepted Answer

C) brand personality

Question 60

A perceptual map is used to ________.  A) compare and contrast consumer psychographic segments B) create consumer cross-tabulations for marketing research  C) locate consumers within a primary metropolitan statistical area (PMSA)  D) determine how consumers position products in relation to one another  E) identify the critical stage of the targeting process for the marketer

Accepted Answer

D) determine how consumers position products in relation to one another

Question 61

Which of the following is true of perceptual maps? A) They are only used during the new product development process. B) They are the most effective method for predicting product success.  C) They identify consumer shopping preferences in terms of retail and nonretail locations. D) They are not useful in business-to-business marketing. E) They cannot be created without consumer research.

Accepted Answer

E) They cannot be created without consumer research.

Question 62

CRM stands for ________.  A) consumer relationship marketing  B) consumer retention management  C) customer relationship management  D) customer retention marketing  E) consumer response management

Accepted Answer

C) customer relationship management

Question 63

A company\'s first step in customer relationship management should be to ________.  A) rank its customers in terms of sales volume  B) identify customers that cost the company money C) identify types of transactions and determine which will be abandoned  D) identify customers and get to know them in as much detail as possible  E) determine which aspect of the product will be customized to meet the individual needs of its customers

Accepted Answer

D) identify customers and get to know them in as much detail as possible

Question 64

Many marketing experts advocate ________ programs that allow a company to talk to individual customers and adjust elements of the marketing mix to satisfy the specific needs of each customer.  A) customer relationship management  B) psychographic segmentation C) transactional management  D) B2B marketing  E) C2C marketing

Accepted Answer

A) customer relationship management

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