Question 1

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     A. develop an advertising plan to promote the upcoming sales.  B. find marketing interns or hire new staff to help with implementation.  C. create pro forma financial statements to complete the package.  D. identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis.  E. use the Internet, catalogs, and vendor information to draw up a list of new products.

Accepted Answer

D. identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis.

Question 2

Segmentation, targeting, and positioning     A. are terms that can be used interchangeably in developing marketing plans.  B. are part of a firm\'s marketing strategy.  C. should be done simultaneously so synergies can help streamline the effort.  D. are part of the marketing plan but bear little direct relationship to the marketing mix.  E. are optional elements of a marketing plan.

Accepted Answer

B. are part of a firm\'s marketing strategy.

Question 3

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.     A. mass customization consumers  B. geographic segments  C. market segments  D. self-concept customers  E. geodemographic segments

Accepted Answer

C. market segments

Question 4

For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting its marketing mix variables to give customers     A. a more flexible supply chain strategy.  B. a perceptual map of the imaging landscape.  C. more product features than the competition offers.  D. lower prices than the competition offers.  E. a clear, distinctive, and desirable understanding of its products relative to competing products.

Accepted Answer

E. a clear, distinctive, and desirable understanding of its products relative to competing products.

Question 5

The first step in the STP process is to     A. identify the segmentation methods to be used.  B. produce a list of strengths and weaknesses of the firm\'s past marketing strategies.  C. clearly articulate the firm\'s vision or marketing strategy objectives.  D. select target markets.  E. develop a marketing mix, so that an appropriate segment can later be identified.

Accepted Answer

C. clearly articulate the firm\'s vision or marketing strategy objectives.

Question 6

For products like clothespins, which provide the same benefit for all consumers, marketers should probably use a(n) ________ strategy.     A. concentrated targeting  B. lifestyle segmentation  C. benefit segmentation  D. undifferentiated targeting  E. differentiated segmentation

Accepted Answer

D. undifferentiated targeting

Question 7

In a classic example of segmentation strategy, years ago Swift Meat Company transformed turkey meat into Butterball turkeys. In the process, the company     A. differentiated its product.  B. streamlined its delivery process.  C. created a new class of micromarketing.  D. defined consumers\' basic needs.  E. redefined mass customization.

Accepted Answer

A. differentiated its product.

Question 8

Adidas Group owns Reebok, Rockport, and TaylorMade brands. Adidas uses the different brands to pursue a(n) __________ strategy.     A. concentrated targeting  B. micromarketing  C. benefit targeting  D. differentiated targeting  E. undifferentiated targeting

Accepted Answer

D. differentiated targeting

Question 9

Adidas Group owns Reebok, Rockport, and TaylorMade brands. Having a variety of brands allows Adidas to     A. engage in micromarketing for hard-to-fit shoe customers.  B. obtain a bigger share of the shoe market.  C. use mass marketing techniques.  D. use geographic segmentation.  E. generate economies of scale in advertising expenditures.

Accepted Answer

B. obtain a bigger share of the shoe market.

Question 10

One of the benefits of a differentiated targeting strategy is that it allows the firm to diversify its business and     A. decrease advertising spending.  B. focus on a single market segment.  C. lower overall risk.  D. use undifferentiated strategies in micro markets.  E. more widely market basic commodities.

Accepted Answer

C. lower overall risk.

Question 11

A differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market; this strategy     A. is the cheapest option.  B. requires the use of advanced advertising techniques.  C. rarely works.  D. is likely more costly than an undifferentiated strategy.  E. is ineffective without multiple brand names.

Accepted Answer

D. is likely more costly than an undifferentiated strategy.

Question 12

Firms use a differentiated targeting strategy because     A. it is easier than mass marketing.  B. it helps to obtain a bigger share of the market.  C. it is better than focusing on individual or small groups of potential customers.  D. most market segments are too small to be profitable.  E. banks are more willing to extend credit to companies with this strategic approach.

Accepted Answer

B. it helps to obtain a bigger share of the market.

Question 13

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.     A. concentrated  B. micromarketing  C. benefit-driven  D. differentiated  E. undifferentiated

Accepted Answer

A. concentrated

Question 14

__________ is an extreme form of a targeting strategy.     A. Macromarketing  B. Micromarketing  C. Benefit marketing  D. Differentiated targeting  E. Concentrated targeting

Accepted Answer

B. Micromarketing

Question 15

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 __________ targeting strategy.     A. macromarketing  B. micromarketing  C. benefit-based  D. differentiated  E. undifferentiated

Accepted Answer

B. micromarketing

Question 16

Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order shoes with custom color combinations. This is a form of     A. micromarketing.  B. concentrated targeting.  C. psychographic segmentation.  D. differentiated targeting.  E. undifferentiated targeting.

Accepted Answer

A. micromarketing.

Question 17

Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies.     A. geographic  B. benefit-based  C. economic  D. global  E. concentrated

Accepted Answer

E. concentrated

Question 18

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     A. concentrated segmentation.  B. geodemographic segmentation.  C. benefit segmentation.  D. psychographic segmentation.  E. misguided geographic segmentation.

Accepted Answer

E. misguided geographic segmentation.

Question 19

Differences in weather and climate create opportunities for     A. concentrated targeting.  B. geographic segmentation.  C. benefit segmentation.  D. psychographic segmentation.  E. demographic segmentation.

Accepted Answer

B. geographic segmentation.

Question 20

NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of race fans were female. This is an example of __________ segmentation.     A. geographic  B. psychographic  C. demographic  D. benefits  E. behavioral

Accepted Answer

C. demographic

Question 21

__________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach.     A. Geographic  B. Psychographic  C. Behavioral  D. Benefits  E. Demographic

Accepted Answer

E. Demographic

Question 22

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.     A. demographic  B. psychographic  C. behavioral  D. benefits  E. geographic

Accepted Answer

A. demographic

Question 23

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. This type of advertising will be more useful to marketers engaged in __________ segmentation.     A. demographic  B. psychographic  C. behavioral  D. benefits  E. geographic

Accepted Answer

A. demographic

Question 24

Demographic segmentation is segmentation based on all of the following EXCEPT     A. age.  B. gender.  C. education.  D. income.  E. lifestyle.

Accepted Answer

E. lifestyle.

Question 25

Psychographics is the segmentation method that delves into how consumers     A. adjust to demographic changes.  B. allocate scarce incomes to a variety of goods and services.  C. describe themselves.  D. value their livelihoods.  E. believe other people see them.

Accepted Answer

C. describe themselves.

Question 26

To develop psychographic segments, the marketer must understand consumers\'     A. age, income, and education.  B. gender, race, and religion.  C. disposable personal income, benefit perceptions, and alternative egos.  D. self-values, self-concept, and lifestyles.  E. buying patterns and behaviors.

Accepted Answer

D. self-values, self-concept, and lifestyles.

Question 27

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     A. it is based on underlying reasons people make choices.  B. it is easier to use than demographics.  C. the travel business doesn\'t respond well to other approaches to segmentation.  D. psychographics is the preferred method for service businesses.  E. psychographic segmentation is the least expensive method.

Accepted Answer

A. it is based on underlying reasons people make choices.

Question 28

Education marketers have learned that the primary motivations of most nontraditional college students are self-respect and self-fulfillment. Understanding the values of this market segment allows marketers to     A. emphasize the benefits these consumers are looking for in a college education.  B. lower the price for this market segment.  C. offer alternative courses based on geographic location.  D. employ loyalty marketing strategies.  E. use micromarketing strategies.

Accepted Answer

A. emphasize the benefits these consumers are looking for in a college education.

Question 29

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.     A. geographic  B. self-concept  C. psychographic  D. benefit  E. behavioral

Accepted Answer

C. psychographic

Question 30

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.\"     A. geographic choices  B. self-concepts  C. loyalty references  D. benefit perceptions  E. demographics

Accepted Answer

B. self-concepts

Question 31

If values provide goals, and self-concept is the way we see ourselves, lifestyles are     A. visual images of how we should live our lives.  B. our underlying motivations.  C. the way we live our lives to achieve our goals.  D. motivations turned into perceptual maps.  E. determined by demographics.

Accepted Answer

C. the way we live our lives to achieve our goals.

Question 32

VALS is the most widely used __________ segmentation tool.     A. geographic  B. behavioral  C. psychographic  D. benefits  E. geodemographic

Accepted Answer

C. psychographic

Question 33

Marketers have found that __________ segmentation is often more useful for predicting consumer behavior than __________ segmentation.     A. demographic; psychographic  B. geographic; geodemographic  C. psychographic; demographic  D. demographic; behavioral  E. demographic; benefit

Accepted Answer

C. psychographic; demographic

Question 34

Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic segmentation     A. is available only in limited geographic areas.  B. is rarely used and unproven.  C. offers only one-to-one marketing potential.  D. is a more expensive method for identifying potential customers.  E. is still an unproven area.

Accepted Answer

D. is a more expensive method for identifying potential customers.

Question 35

__________ segmentation is the segmentation method most directly related to value creation for consumers.     A. Geographic  B. Demographic  C. Psychographic  D. Benefit  E. Geodeomographic

Accepted Answer

D. Benefit

Question 36

A university using benefit segmentation and targeting students who want to get a degree quickly while still working full time would focus on     A. providing classes at convenient times and offering online courses.  B. discount pricing for students taking more than twelve credit hours.  C. the higher average salaries earned by college graduates.  D. the great variety of classes offered.  E. the number of Nobel Prize winners on the faculty.

Accepted Answer

A. providing classes at convenient times and offering online courses.

Question 37

The Lite beer commercial with the slogan, \"less filling, tastes great,\" was based on __________ segmentation.     A. geographic  B. geodemographic  C. psychographic  D. benefit  E. loyalty

Accepted Answer

D. benefit

Question 38

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.     A. benefit  B. geodemographic  C. psychographic  D. loyalty  E. demographic

Accepted Answer

A. benefit

Question 39

Golden Years Vitamin Corporation targets consumers living in Florida who are over age 65. Golden Years is using __________ segmentation.     A. benefit  B. self-actualization  C. psychographic  D. loyalty  E. geodemographic

Accepted Answer

E. geodemographic

Question 40

The phrase \"birds of a feather flock together\" captures the idea of __________ segmentation.     A. geodemographic  B. benefit  C. psychographic  D. loyalty  E. geographic

Accepted Answer

A. geodemographic

Question 41

PRIZM and Tapestry divide and sort small geographic areas into categories using 60 or more demographic and lifestyle characteristics. These market research tools are examples of __________ segmentation.     A. geodemographic  B. benefit  C. psychographic  D. loyalty  E. geographic

Accepted Answer

A. geodemographic

Question 42

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 twenty miles. She can\'t afford to purchase a PRIZM or Tapestry analysis, so she will most likely use __________ as a basis for targeting her market.     A. voter registration lists  B. the city phone book  C. real estate values by subdivision  D. public school enrollment data  E. new construction data

Accepted Answer

C. real estate values by subdivision

Question 43

Geodemographic segmentation can be particularly useful for __________, because customers typically patronize stores close to their neighborhood.     A. Internet marketers  B. wholesalers  C. retailers  D. consumer goods manufacturers  E. cable TV networks

Accepted Answer

C. retailers

Question 44

Retail store chains often use __________ data to identify other locations with similar characteristics and purchasing behavior where it might make sense to open additional stores.     A. geodemographic  B. benefit  C. psychographic  D. loyalty  E. geographic

Accepted Answer

A. geodemographic

Question 45

Marketers often create a special marketing mix for loyalty segments because these segments are     A. too large to service with ordinary targeting.  B. difficult to identify.  C. costly to acquire.  D. generally profitable.  E. constantly changing.

Accepted Answer

D. generally profitable.

Question 46

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.     A. benefit  B. geodemographic  C. psychographic  D. loyalty  E. geographic

Accepted Answer

D. loyalty

Question 47

Airlines were among the first retailers to embrace loyalty segmentation when they created     A. business-class seating.  B. 30-day advance pricing.  C. fuel surcharges.  D. in-flight movies.  E. frequent flyer programs.

Accepted Answer

E. frequent flyer programs.

Question 48

One of the reasons marketers use loyalty segmentation is     A. the high cost of finding new customers.  B. government tax incentives.  C. accounting difficulties associated with identifying new customers.  D. rapid population increases.  E. the failure of micromarketing as a workable strategy.

Accepted Answer

A. the high cost of finding new customers.

Question 49

While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do NOT help marketers determine     A. how old their customers are.  B. what their customers need.  C. where their customers live.  D. which customers have young children.  E. what income brackets their customers are in.

Accepted Answer

B. what their customers need.

Question 50

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.     A. micromarketing; loyalty  B. lifestyle; macromarketing  C. geodemographic; lifestyle  D. geographic; loyalty  E. behavioral; geodemographic

Accepted Answer

C. geodemographic; lifestyle

Question 51

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.     A. loyalty segmentation; demographics  B. undifferentiated targeting; differentiated targeting  C. loyalty segmentation; geodemographics  D. geodemographic segmentation; lifestyle or benefit segmentation  E. lifestyle segmentation; geographic segmentation

Accepted Answer

D. geodemographic segmentation; lifestyle or benefit segmentation

Question 52

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to     A. categorize each market segment by consumer demographics.  B. establish her overall objectives.  C. decide on a targeting strategy.  D. develop a positioning strategy.  E. evaluate the attractiveness of each segment.

Accepted Answer

E. evaluate the attractiveness of each segment.

Question 53

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate whether each segment is attractive relative to all of the following EXCEPT     A. substantial.  B. responsive.  C. profitable.  D. reachable.  E. realistic.

Accepted Answer

E. realistic.

Question 54

Carlos has identified four potential market segments for his Rent-A-Nurse service. He will now compare the segments to see whether they are distinct from each other. Carlos is evaluating whether each segment is     A. identifiable.  B. responsive.  C. profitable.  D. reachable.  E. substantial.

Accepted Answer

A. identifiable.

Question 55

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     A. substantial.  B. responsive.  C. profitable.  D. reachable.  E. identifiable.

Accepted Answer

A. substantial.

Question 56

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     A. substantial.  B. perceptive.  C. identifiable.  D. reachable.  E. quantifiable.

Accepted Answer

D. reachable.

Question 57

With access to the Internet nearly universal in the United States, many potential market segments have become more     A. substantial.  B. perceptive.  C. identifiable.  D. reachable.  E. quantifiable.

Accepted Answer

D. reachable.

Question 58

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.     A. benefit  B. geodemographic  C. psychographic  D. demographic  E. geographic

Accepted Answer

D. demographic

Question 59

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     A. lifestyle.  B. geodemographics.  C. demographics.  D. loyalty.  E. PRIZM segment.

Accepted Answer

A. lifestyle.

Question 60

College students can be a less __________ market segment because students\' media habits are quite diverse.     A. substantial  B. perceptive  C. identifiable  D. reachable  E. quantifiable

Accepted Answer

D. reachable

Question 61

For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm\'s marketing mix. In other words. the market segment must be     A. substantial.  B. perceptive.  C. identifiable.  D. reachable.  E. responsive.

Accepted Answer

E. responsive.

Question 62

When Starbucks first opened, many critics suggested, \"No one will pay $4.00 for a cup of coffee.\" Starbucks\' critics suggested consumers would not be __________ to the company\'s offerings.     A. responsive  B. perceptive  C. identifiable  D. reachable  E. quantifiable

Accepted Answer

A. responsive

Question 63

The manager of Plantation River Country Club wanted members of the very upscale club to use the bar and dining facilities more frequently. He offered a two-for-one happy hour special but few members showed up. The manager did not have a grasp of what would make his target market     A. substantial.  B. responsive.  C. identifiable.  D. reachable.  E. quantifiable.

Accepted Answer

B. responsive.

Question 64

Caroline is assessing market growth, market competitiveness, and market access for each segment she has identified. Caroline is assessing the __________ of each potential market segment.     A. substance  B. responsiveness  C. identification  D. reach  E. profitability

Accepted Answer

E. profitability

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