Marketing Chapter 9 – 1st set – Flashcards
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c
(Rationale: Product differentiation involves a firm's using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different and better than competing products. In the case of Crest, the change of flavor (a product feature) helped consumers to perceive the product as different and better than competing products.)
answer
When Procter & Gamble introduced Crest toothpaste, the first fluoride toothpaste, it was intended for use by children and was therefore given a child-appealing bubblegum flavor. Sometime later, the same basic formula was given a fresh, minty flavor to appeal to adults. What marketing strategy did P&G use in this example?
a. product segmentation
b. market expansion
c. product differentiation
d. usage segmentation
e. psychographic segmentation
question
c
(Rationale: Product differentiation involves a firm's using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different and better than competing products. Bayer, the maker of Alka-Seltzer, is selling four versions with different product features to appeal to different market segments.)
answer
Alka-Seltzer was made originally as a hangover remedy that cured the headache and settled the stomach. Today you can buy Original Alka-Seltzer, Extra Strength Alka-Seltzer, Alka-Seltzer Morning Relief (for morning headaches and fatigue), and Alka-Seltzer Heartburn Relief. Each Alka-Seltzer product has a different formulation to relieve a specific malady for a specific targeted market segment. The maker of Alka-Seltzer is using
a. product segmentation.
b. market sectioning.
c. product differentiation.
d. product segmentation.
e. product base development.
question
a
(Rationale: Market segmentation links market needs to an organization's marketing program—specific marketing mix actions that satisfy customers' needs.)
answer
Small athletic shoe manufacturers such as Vans have targeted niche markets and make shoes designed to satisfy the needs of different specific groups of customers. This strategy is an example of
a. market segmentation.
b. mass customization.
c. customized manufacturing.
d. single chain marketing.
e. market specific selection.
question
c
(Rationale: Market segmentation links market needs to an organization's marketing program—specific marketing mix actions to satisfy those needs. Reebok targets the specific needs of particular segments of runners with its different types of shoes.)
answer
Reebok makes shoes with DMX Shear and Foam cushioning. The Premier Control shoe is made for runners whose feet tend to turn out. The Premier Road is made with extra cushioning for pavement runners. This strategy is an example of
a. mass customization.
b. customized manufacturing.
c. market segmentation.
d. single chain marketing.
e. market specific selection.
question
e
(Rationale: A market-product grid is a framework to relate the market segments of potential buyers to products offered or potential marketing actions. The market-product grid for pillows shows the different market segments for bed pillows—the side, back, and stomach sleepers—in the horizontal rows. The product offerings—the pillows—appear in the vertical columns and are based on three different pillow firmnesses. See Figure 9-2 in the textbook.)
answer
A market-product grid relates the market segments to the products offered or potential marketing actions. With respect to pillows, what would be the most effective way to segment the pillow market? One should segment this market by
a. the age of the sleeper: less than 18 years of age, 18 to 44 years of age, or 45 years and older.
b. the sleeper's annual income: less than $25,000, $25,000 to $49,999, or $50,000 and over.
c. the sleeper's gender: male or female.
d. whether the sleeper has sleeping problems: yes or no.
e. how the sleeper sleeps: side, back,or stomach.
question
a
(Rationale: A market-product grid is a framework to relate the market segments of potential buyers to products offered or potential marketing actions. The market-product grid for pillows shows the different market segments for bed pillows—the side, back, and stomach sleepers—in the horizontal rows. The product offerings—the pillows—appear in the vertical columns and are based on three different pillow firmnesses. Market research reveals the size of each sleeper segment, as shown by both the percentages and circles in Figure 9-2. This tells pillow manufacturers that the relative importance of each of the three market segments when they schedule production. It also emphasizes the importance of the firm pillow product targeted at the side sleeper market segment. As Figure 9-2 shows, this segment is almost three times larger (73 percent) than the combined sizes of the other two. Therefore, meeting the needs of this side sleeper-firm pillow market-product segment is especially important to a pillow manufacturer. See Figure 9-2 in the textbook.)
answer
An analysis of the pillow market using a market-product grid suggests that the most important segment to target is
a. side sleepers.
b. sleepers with sleep disorders, such as sleep apnea.
c. sleepers with annual incomes of $50,000 and over.
d. back sleepers.
e. stomach sleepers.
question
a
()
answer
Time magazine publishes over 100 different U.S. editions with common editorial content. However, each edition is targeted at unique geographic segments with its own set of advertisements. Time is using which of the following segmentation strategies?
a. one product with multiple market segments
b. multiple products with multiple market segments
c. one product with multiple channels of distribution
d. one product with changes based on customer behavior
e. multiple products with one segment
question
c
(Rationale: Scholastic is selling one book series (product) to multiple market segments—preteen, teen, and adult readers.)
answer
In the United States, the Harry Potter series of books were often at the top of The New York Times fiction bestseller list. These books have been marketed to preteen, teen, and adult readers around the world. Scholastic Press, the publisher of the Harry Potter books in the U.S., is using which of the following segmentation strategies?
a. multiple products with one segment
b. one product with one channel of distribution
c. one product with multiple market segments
d. one product with changes based on customer behavior
e. multiple products with multiple segments
question
c
(Rationale: A multiple products and multiple markets strategy has a number of distinct products, each targeted to different types of users. Ford's SUVs and pickups are two types of vehicles targeted at two different groups of consumers—those who wish to carry people and those who wish to carry cargo.)
answer
Which of the following is an example of a multiple products and multiple market segments strategy?
a. College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the U.S.
b. A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience.
c. Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo.
d. Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes.
e. Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.
question
c
(Rationale: A multiple products and multiple markets strategy has a number of distinct products, each targeted to a different type of user. Betty Crocker's two types of cake mixes are marketed to two different groups of consumers—those with conventional ovens and those with microwave ovens.)
answer
Which of the following is an example of a multiple products and multiple markets strategy?
a. College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the U.S.
b. A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience.
c. Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens.
d. Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes.
e. Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.
question
e
(Rationale: Manufacturing multiple products for multiple market segments is worthwhile if it serves customers' needs better, doesn't reduce quality or increase price, and adds to the manufacturer's sales revenues and profits.)
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Kellogg's different cereals are each targeted at a different type of user. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one but seems worthwhile if it adds to the manufacturer's sales revenues and profits, doesn't reduce quality or increase price, and
a. conforms to all FDA guidelines.
b. uses the same promotion and packaging for all segments.
c. decreases the cost of the physical plant.
d. stabilizes the sales revenues and profits.
e. better serves customers' needs.
question
c
(Rationale: Manufacturing multiple products for multiple market segments is worthwhile if it serves customers' needs better, doesn't reduce quality or increase price, and adds to the manufacturer's sales revenues and profits.)
answer
Kellogg's different types of cereals are each targeted at a different type of user. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it adds to the manufacturer's sales revenues and profits, serves customers' needs better, and
a. conforms to all FDA guidelines.
b. creates economy of scale.
c. doesn't reduce quality or increase price.
d. decreases the cost of the physical plant.
e. stabilizes the sales revenues and profits.
question
b
(Rationale: Manufacturing multiple products for multiple market segments is worthwhile if it serves customers' needs better, doesn't reduce quality or increase price, and adds to the manufacturer's sales revenues and profits.)
answer
Kellogg's different types of cereals are each targeted at a different type of user. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it serves customers' needs better, doesn't reduce quality or increase price, and
a. conforms to all FDA guidelines.
b. adds to the manufacturer's sales revenues and profits.
c. creates economy of scale.
d. decreases the cost of the physical plant.
e. stabilizes the sales revenues and profits.
question
a
answer
Custom Foot runs six retail locations. At first glance, none looks any different from your basic old-fashioned shoe store, but the only boots on hand are display models. There's no inventory for sale and customers go home empty-handed—at least initially. Customers browse the store, mixing and matching design components such as style, color, and leather type. About 100 display boots provide style guidelines. Once you choose a boot style, you select materials, colors, and textures. Custom Foot guarantees your boots will be ready within three weeks. This is an example of
a. mass customization.
b. specialty customization.
c. virtual merchandising.
d. one product and multiple market segments.
e. multiple products and multiple market segments.
question
b
(Rationale: Mass customization is tailoring goods or services to the tastes of individual customers at high volumes. Alternatives of "one product and multiple market segments" and "multiple products and multiple market segments" are incorrect because ChoiceShirts only markets to one segment: online consumers who buy photo-supplied designer T-shirts. This issue here is mass customization.)
answer
ChoiceShirts is an online company that makes made-to-order T-shirts. Its online customers can order their shirts using any downloaded photo inserted into 600 templates or even design a shirt from scratch. This is an example of
a. family branding.
b. mass customization.
c. multiple products and multiple market segments.
d. one product and multiple market segments.
e. specialty customization.
question
d
(Rationale: Today's flexible manufacturing and marketing processes have made mass customization possible, tailoring goods or services to the tastes of individuals on a high-volume scale.)
answer
MyTwinn makes dolls that look like young girls. For $119, the firm will make a doll that looks just like a photograph. So, if you send in the money and a photo of your young niece, she could have a doll that is her twin! This is an example of
a. family branding.
b. "Tiffany" marketing.
c. multiple products and multiple market segments.
d. mass customization.
e. specialty customization.
question
b
(Rationale: Today's flexible manufacturing and marketing processes have made mass customization possible, tailoring goods or services to the tastes of individuals on a high-volume scale.)
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Lands' End will custom fit a Marinac jacket and make it with additional features such as thumb loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com. This is an example of
a. family branding.
b. mass customization.
c. "Tiffany/Walmart" marketing.
d. market melding.
e. specialty customization.
question
c
(Rationale: Today's Internet ordering and flexible manufacturing and marketing processes have made mass customization possible, tailoring goods or services to the tastes of individuals on a high-volume scale.)
answer
To implement a __________ strategy, nikeid.com allows customers to visit its website and design a sneaker to their own personal specifications.
a. product sampling
b. product clustering
c. mass customization
d. usage segmentation
e. psychographic segmentation
question
a
(Rationale: Today's flexible manufacturing and marketing processes have made mass customization possible, tailoring goods or services to the tastes of individuals on a high-volume scale.)
answer
Chip-N-Dough Cookie Company will let you select cookies and put a photo of yourself on the tin. This is an example of
a. mass customization.
b. multiple marketing.
c. target marketing.
d. product clustering.
e. repositioning.
question
b
(Rationale: Today's flexible manufacturing and marketing processes have made mass customization possible, tailoring goods or services to the tastes of individuals on a high-volume scale)
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Name Maker is an online company that sells high-end gift wrapping that can have custom slogans or names printed on it, such as the name of a person celebrating a birthday or a couple who is getting married. This made-to-order gift wrapping is priced from $24.95 to $32.95 per 12-foot roll. This is an example of
a. family branding.
b. mass customization.
c. synergistic marketing.
d. "Tiffany/Walmart" marketing.
e. specialty customization.
question
c
(Rationale: The comparison of the Model E to Dell is the phrase that should remove any doubt from students' minds about what kind of business this is. It is very similar to mass customization, but because of production issues, a customer does not have the ability to specify an unlimited number of features.)
answer
Model E is a new type of car manufacturer that relies on the Internet to build new car designs from prototypes to marketable vehicles much faster than ever before. "Think of Model E as the Dell of the auto industry. We design just a few products that consumers truly want, leveraging best-in-class components and micro-factory approaches for rapid design, launch, and direct delivery," said William Santana Li, president and CEO of Model E. Model E manufactures a car only when there is an order from a customer. Model E relies on
a. order customization.
b. a one product one market segment strategy.
c. build-to-order.
d. mass customization.
e. specialty customization.
question
b
(Rationale: Consumers who buy Chocolate Cheerios may have chosen not to buy MultiGrain Cheerios or Honey Nut Cheerios. Thus, Chocolate Cheerios could cannibalize sales from the other Cheerios products in the General Mills line.)
answer
Cannibalization would most likely occur if
a. Dell adds high-end speaker systems to its line.
b. General Mills launches Chocolate Cheerios.
c. General Motors markets a sport coupe similar to the BMW Z4.
d. Pillsbury adds boxed sugar to its product line.
e. Procter & Gamble adds a new line of baby clothing to its product mix.
question
b
(Rationale: It's not always a good idea to segment a market. Grouping potential buyers into meaningful segments involves answering the question, "Would segmentation be worth doing, and is it possible?")
answer
Grouping potential buyers into meaningful segments involves meeting some specific criteria that answer the question
a. "Is this product useful on a global scale?"
b. "Would segmentation be worth doing and is it possible?"
c. "Is it possible to reposition this product?"
d. "Is there too much competition for this product?"
e. "Is the market loyal to the product?"
question
d
(Rationale: The "allergies" market segment would probably not provide sufficient profit and ROI given its small estimated size, the limited benefit to consumers in the segment, and the high cost of running a duplicate salad bar. Bottom line: The cost probably exceeds the profits gained.)
answer
Between 2 and 3 percent of the population have some degree of allergic reaction, usually mild, to preservatives used in salad bars. Restaurants might consider people with these "allergies" as a separate segment. To implement this segmentation strategy, restaurants would have to have a regular salad bar and a special salad bar for the allergies segment. This multiple product and multiple market segment strategy would have the greatest difficulty meeting which of the following criteria used to form market segments?
a. different needs of buyers among different segments
b. similarity of needs of potential buyers within a segment
c. simplicity and cost of assigning potential buyers to segments
d. potential for increased profit and ROI
e. potential of a marketing action to reach a segment
question
d
(Rationale: Campbell's is marketing a different sauce to different markets depending on where they are located. This is geographic segmentation.)
answer
Campbell's found that its canned nacho cheese sauce, which could be heated and poured directly onto nacho chips, was too hot for Americans in the East and not hot enough for those in the West and Southwest. Today, Campbell's plants in Texas and California produce a hotter nacho cheese sauce than what is produced in the other plants. Campbell's is using __________ segmentation.
a. demographic
b. behavioral
c. economic
d. geographic
e. psychographic
question
c
(Rationale: KFC has discovered that to be a successful global marketer, it must be willing to adapt to the taste preferences of different geographic regions.)
answer
Which of the following statements best illustrates geographic segmentation?
a. GE built a downsized microwave oven to hang under kitchen cabinets.
b. Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners.
c. In China, KFC sells a spicier chicken the farther away its restaurants are from the coastal areas.
d. A fast food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays.
e. A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area.
question
a
(Rationale: Western Canadians prefer country music much more than do Eastern Canadians. If the concerts can be held in only one location, Universal Concerts should use geographic characteristics in deciding where to hold a successful country music concert.)
answer
Universal Concerts wants to bring a series of country music concerts to Canada next year. In general, Western Canadians much prefer country music while Eastern Canadians prefer rock. Thus, a country music event in eastern Canada is very likely to have lots of empty seats even though it is more populous than the western part of the country. If it can book only one venue, Universal Concerts should segment its Canadian market according to __________ if it hopes to have a sold out concert.
a. geographic characteristics
b. demographic characteristics
c. music format characteristics
d. behavioral characteristics
e. psychographic characteristics
question
d
(Rationale: The number of people in a household is a demographic characteristic that Aunt Jemima uses to segment the market. See Figure 9-4 in the textbook.)
answer
More than half of all U.S. households are composed of only one or two persons, so Aunt Jemima packages meals with only one serving—such as its Ham & Egg Scramble and Oatmeal Pancakes. Aunt Jemima is using __________ as the basis to segment its market.
a. usage rates
b. usage patterns
c. behavior characteristics
d. demographic characteristics
e. psychographic characteristics
question
b
(Rationale: Birth era (derived in part from age) is a demographic segmentation variable. See Figure 9-4 in the textbook.)
answer
Procter & Gamble (P&G) decided to skip a generation of consumers when it began to market Old Spice deodorant. The target market consists of men aged 18 to 34 years old (Generation Y) who don't remember the Old Spice brand sold to their grandfathers (pre baby boomer) many years ago. P&G is using which type of segmentation variable?
a. behavioral
b. demographic
c. lifestyle
d. geographic
e. psychographic
question
c
(Rationale: Household income is a demographic variable. See Figure 9-4 in the textbook.)
answer
When a telemarketer calls to sell a consumer life insurance, the last questions asked is what category does the person's household income fall into (less than $50,000; $50,000 to $99,999; and $100,000 and over). When the telemarketer asks about household income, this indicates the use of which type of consumer segmentation variable?
a. usage
b. behavior
c. demographic
d. buying situation
e. psychographic
question
b
(Rationale: Marital status, life stage, and household/family size are demographic variables. See Figure 9-4 in the textbook.)
answer
The State of Alabama Board of Tourism ran a series of ads showing traditional families enjoying various attractions in the state. Since the apparent target of these ads is the traditional family, it appears that the State of Alabama Board of Tourism has segmented the market using __________ variables.
a. regional
b. demographic
c. socioeconomic
d. geographic
e. psychographic
question
b
(Rationale: Household size is a demographic customer characteristic. Because smaller households need to cook less food, GE downsized its microwave oven and restyled it to hang under cabinets. See Figure 9-4 in the textbook.)
answer
Which of the following statements demonstrate the formation of a segment based on household size?
a. Campbell's makes a spicier nacho cheese sauce for its distributors in Texas than it does in Maine.
b. GE built a downsized microwave oven to hang under kitchen cabinets.
c. Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners.
d. A fast food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays.
e. A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area.
question
b
(Rationale: Race/ethnicity is a demographic segmentation variable. See Figure 9-4 in the textbook.)
answer
At a Hallmark store you can find several different product lines of greeting cards, likely including Fresh Ink, Nature's Sketchbook, Shoebox, Maxine, Mahogany, and Tree of Life cards—all made by Hallmark for sale in its stores and intended to appeal to different target markets. The Mahogany line is designed to appeal to African-Americans. This is an example of __________ segmentation.
a. regional
b. demographic
c. lifestyle
d. geographic
e. psychographic
question
a
(Rationale: Lifestyle is a psychographic variable. These magazines are designed to appeal to people who enjoy certain lifestyles. See Figure 9-4 in the textbook)
answer
Magazines like Fitness, Field & Stream, Golf Digest, and Health all use a __________ segmentation strategy.
a. psychographic
b. behavioral
c. situational
d. socioeconomic
e. geographic
question
a
(Rationale: Rate of use and user status are both behavioral segmentation variables. In this case, "over 40 weeks per year" is a measure of usage rate.)
answer
A national car rental firm targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year. Its market is likely segmented by
a. usage.
b. benefits offered.
c. demographics.
d. geography.
e. lifestyle.
