Chapter 8

Question 1

Concerning market segmentation, which of the following statements is NOT correct?
a. Only for-profit organizations practice market segmentation.
b. Firms that practice market segmentation don’t necessarily change their products to
meet the needs of different market segments.
c. There are too many variables to attract all customers using the same marketing
mix.
d. Market segmentation attempts to divide the total market into smaller groups

Answer 1

A

Question 2

1) Which of the following statements about market segmentation is true?
A) It involves changing the identity of a product, relative to the identity of competing products,
in the collective minds of the target market.
B) It is a process of evaluating each segment’s attractiveness and selecting one or more to enter.
C) It is a process of creating an image or identity of the product in the minds of the target market.
D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs
and wants.
E) It is the quality of how marketers go to market with the goal of optimizing their spending to
achieve good results.

Answer 2

D

Question 3

Which of the following is NOT a common basis for segmenting consumer markets?
a. geographic
b. psychographic
c. competitive
d. demographic

Answer 3

C

Question 4

2) Establishing and communicating the distinctive benefit(s) of the company’s market offering,
for each target segment is called ________.
A) market research
B) market positioning
C) marketing effectiveness
D) market segmentation
E) market dominance

Answer 4

B

Question 5

The process of selecting one or more market segments to enter is called ________.
A) market targeting
B) market dominance
C) market positioning
D) market segmentation
E) market research

Answer 5

A

Question 6

A ________ consists of a group of customers who share a similar set of needs and wants.
A) vertical marketing system
B) market basket
C) market share
D) market segment
E) market level

Answer 6

D

Question 7

Why is segmentation necessary in competitive markets?
a) To monopolize the market
b) To minimize competition
c) Competitive markets are too big and diverse for one company to handle all the various wants and needs
d) To increase product prices

Answer 7

C

Question 8

What is one of the primary benefits of segmentation for companies?
a) Expanding market reach
b) Minimizing customer diversity
c) Allowing companies to better specify customers’ wants and needs
d) Creating generic products for all customers

Answer 8

C

Question 9

To be useful, market segments must be measurable.

Answer 9

T

Question 10

Which of the following is a key criterion for segmentation according to the MARS framework?
a) Marketing
b) Measurable
c) Methods
d) Management

Answer 10

B

Question 11

Why is measurability important in segmentation?
a) It helps in creating generic marketing strategies
b) It ensures uniformity among customer segments
c) Marketing research can reliably tell you how big (or small) the segment is
d) It reduces the need for budget allocation

Answer 11

C

Question 12

How does size estimation aid in decision-making for companies?
a) It eliminates the need for budget planning
b) It ensures uniformity in marketing strategies
c) It helps in budget allocation and decision-making

Answer 12

C

Question 13

What does the criterion of “accessible” mean in segmentation?
a) The segment is easy to understand
b) The segment has a high level of income
c) You can identify and target the segment
d) The segment is located in urban areas

Answer 13

C

Question 14

Why is it important for a segment to be accessible?
a) To increase competition among competitors
b) To ensure that marketing promotions can reach them
c) To limit the number of potential customers
d) To reduce the effectiveness of marketing strategies

Answer 14

B

Question 15

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

Answer 15

E

Question 16

What does the criterion of “responsive” or “actionable” imply in segmentation?
a) Segments should react quickly to marketing efforts
b) Segments should be easily understood
c) Segments should respond differently to marketing efforts
d) Segments should have similar behaviors

Answer 16

C

Question 17

Why is it important for segments to respond differently to marketing efforts?
a) To reduce the effectiveness of marketing strategies
b) To ensure that all segments receive equal attention
c) Meaningful marketing plans are tailored to address unique segment needs
d) To simplify the marketing process

Answer 17

C

Question 18

What approach might be more practical if segments respond similarly to marketing efforts?
a) Combining them into a single segment
b) Dividing them into smaller segments
c) Ignoring segmentation altogether
d) Conducting more extensive market research

Answer 18

A

Question 19

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

Answer 19

B

Question 20

What does the criterion of “substantial” imply in segmentation?
a) Segments should be small and manageable
b) Segments should be large enough to support profitable marketing strategies
c) Segments should be niche and exclusive
d) Segments should be numerous

Answer 20

B

Question 21

Why should each segment be large enough to support a profitable marketing strategy?
a) To limit competition among segments
b) To ensure exclusivity within segments
c) Each segment should be large enough, durable enough, and different enough to make it worth the while
d) Smaller segments allow for more personalized marketing efforts

Answer 21

C

Question 22

Pampers divides its market demographically on the basis of ________ into prenatal, new
baby, baby, toddler, and preschooler.
A) life stage
B) gender
C) age
D) income
E) social class

Answer 22

C

Question 23

) Jose and Erika have just divorced. Which of the following demographic segmentation
subsegment formats might be used by marketers to reach Jose or Erika?
A) life stage
B) benefits
C) age segment
D) personality type
E) social class

Answer 23

A

Question 24

) 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

Answer 24

B

Question 25

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

Answer 25

A

Question 26

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 E) segment identification

Answer 26

E

Question 28

A local service company has decided to segment its market based on occupation; therefore, it has chosen a form of demographic segmentation for its approach.

Answer 28

T

Question 29

Demographic variables are popular because they are often associated with consumer needs and wants and they are easy to measure.

Answer 29

T

Question 30

What does segmenting allow marketers to do? a) Combine customers' needs and wants b) Determine customers' purchasing behavior c) Divide customers based on different needs and wants d) Analyze customers' demographics only

Answer 30

C

Question 31

What does the "M" stand for in the MARS framework of segmentation criteria? a) Measurable (could be measured) b) Meaningful (important to customers) c) Manageable (easy to handle) d) Memorable (leaves an impression)

Answer 31

A

Question 32

According to the MARS framework, what does the "A" represent? a) Accessible (how it could be accessed) b) Accurate (reliable data) c) Aggressive (pushing marketing efforts) d) Analytical (using data analysis)

Answer 32

A

Question 33

How is responsiveness defined in the MARS framework? a) How customers respond to product quality b) How customers react to changes in marketing strategies c) How customers react to competitors' actions d) How customers react to demographic changes

Answer 33

B

Question 34

Why is the "S" criterion important in segmentation? a) To analyze customer satisfaction b) To determine customer loyalty c) To ensure the customer base is big enough d) To identify customer preferences

Answer 34

C

Question 35

Which of the following is NOT a demographic factor commonly used for segmenting consumer markets? a) Age b) Occupation c) Product preference d) Income

Answer 35

C

Question 36

Why is demographic segmentation widely used? a) Due to its complexity b) Ease of measurement and availability of high-quality data c) Limited data availability d) Its exclusivity to specific markets

Answer 36

B

Question 37

Which of the following is an example of a demographic characteristic? a) Lifestyle choices b) Brand loyalty c) Age d) Product usage frequency

Answer 37

C

Question 38

How does demographic segmentation assist marketers? a) By identifying consumer preferences b) By providing insights into psychographic factors c) By categorizing consumers based on measurable population characteristics d) By focusing solely on geographic factors

Answer 38

C

Question 39

Hilton Hotels customizes rooms and lobbies according to location. Northeastern hotels are sleeker and more cosmopolitan. Southwestern hotels are more rustic. This is an example of ________ segmentation. A) demographic B) behavioral C) psychographic D) geographic E) cultural

Answer 39

D

Question 40

If a marketer decides to segment a market based on neighborhoods, the marketer will have chosen the ________ method of segmentation. A) demographic B) psychographic C) geographic D) cultural E) behavioral

Answer 40

C

Question 41

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

Answer 41

A

Question 42

Customer cloning is the practice of identifying the key characteristics of a market segment and then identifying multiple geographic areas where the majority of the population possesses those characteristics

Answer 42

F

Question 43

If a marketing manager segments the market into culture-oriented, sports-oriented, or outdoororiented groups, he or she is segmenting on the basis of ________. A) loyalty status B) behavioral occasions C) user status D) psychographic lif

Answer 43

D

Question 44

If a marketing manager segments the market into culture-oriented, sports-oriented, or outdoororiented groups, he or she is segmenting on the basis of ________. A) loyalty status B) behavioral occasions C) user status D) psychographic lifestyle E) readiness stage

Answer 44

D

Question 45

________ is the science of using psychology and demographics to better understand consumers. A) Psychographics B) Interactionism C) Clustering D) Demographic transition E) Customerization

Answer 45

A

Question 46

Psychographics is the science of using psychology and demographics to better understand consumers.

Answer 46

T

Question 47

People in the same demographic group generally exhibit similar psychographic profiles.

Answer 47

F

Question 48

What factors does psychographic segmentation consider? a) Age, income, and gender b) Personalities, motives for purchase, and lifestyles c) Geographic location and occupation d) Product preferences and brand loyalty

Answer 48

B

Question 49

Which segmentation approach provides a more complete picture of consumer behavior? a) Demographic segmentation b) Geographic segmentation c) Psychographic segmentation d) Behavioral segmentation

Answer 49

C

Question 50

Why is psychographic segmentation considered difficult to measure compared to demographics? a) Due to its simplicity b) Because it focuses on easily measurable factors c) Because it considers abstract and subjective factors d) Because it provides less detailed insights into consumer behavior

Answer 50

C

Question 51

What does benefit sought segmentation focus on? a) Geographic location b) Consumer demographics c) Different benefits consumers seek from the same product d) Consumer personalities

Answer 51

C

Question 52

How does benefit sought segmentation enhance marketing strategies? a) By ignoring consumer preferences b) By offering the same benefits to all consumers c) By tailoring product offerings to match specific consumer needs d) By focusing solely on product features

Answer 52

C

Question 53

What does usage rate segmentation focus on? a) Geographic location b) Consumer demographics c) The frequency and quantity of product usage d) Consumer personalities

Answer 53

C

Question 54

What aspects of consumer behavior does usage rate segmentation consider? a) Age and income levels b) Purchase intentions c) Whether people purchase a product or not, how much, and how often they use it d) Brand preferences

Answer 54

C

Question 55

Which of the following is a usage rate category commonly used in segmentation? a) Income status b) Geographic location c) User status d) Psychographic factors

Answer 55

C

Question 56

How is user status defined in usage rate segmentation? a) Based on demographic characteristics b) Based on geographic location c) Based on whether people purchase a product or not, and their usage frequency d) Based on product price

Answer 56

C

Question 57

What role does usage rate segmentation play in marketing strategies? a) It focuses solely on product features b) It tailors marketing efforts based on consumer personalities c) It helps in targeting specific consumer groups based on their usage behavior d) It ignores consumer preferences

Answer 57

C

Question 58

What are some of the characteristics considered in business market segmentation? a) Age and income levels b) Geographic location, industry, and size c) Personal hobbies and interests d) Psychographic factors

Answer 58

B

Question 59

Why is industry segmentation important in the business market? a) It determines employee satisfaction levels b) It helps identify potential competitors c) It allows for tailored marketing strategies based on industry-specific needs d) It limits product variety

Answer 59

C

Question 60

What role does purchasing criteria segmentation play in business markets? a) It helps determine employee satisfaction levels b) It tailors marketing efforts based on personal characteristics c) It allows for customized offerings based on business purchasing criteria d) It ignores consumer preferences

Answer 60

C

Question 61

Which of the following is NOT a characteristic commonly used in business market segmentation? a) Industry b) Location c) Product preferences d) Purchasing strategy

Answer 61

C

Question 62

Which factors are included in the Buying Process component? a) Industry segmentation b) Personal hobbies and interests c) Purchasing criteria, purchasing strategy, and personal characteristics d) Geographic location and size

Answer 62

C

Question 63

What is the primary focus of benefit sought segmentation? a) Analyzing competitors' pricing strategies b) Calculating profit margins c) Understanding the value equation in terms of benefits versus price d) Identifying consumer demographics

Answer 63

C

Question 64

How is value typically defined in benefit sought segmentation? a) Value = Price / Benefits b) Value = Benefits / Price c) Value = Benefits + Price d) Value = Benefits - Price

Answer 64

B

Question 65

What does benefit sought segmentation entail? a) Assessing product quality b) Understanding the problem a product solves, the benefit it offers, or the issue it addresses c) Analyzing distribution channels d) Determining consumer income levels

Answer 65

B

Question 66

Effective target marketing requires that marketers use market segmentation, market targeting, and market positioning to achieve success in the marketplace.

Answer 66

T

Question 67

Regardless of the type of segmentation scheme used, the key is adjusting the marketing program to recognize ________. A) the level of disposable income earned by the target group B) customer differences C) the cost-benefit relationship of narrowing the target market D) customer complaints E) saturated markets

Answer 67

B

Question 68

What does the process of targeting involve? a) Identifying all potential market segments b) Evaluating each market segment's feasibility and attractiveness c) Entering multiple segments simultaneously d) Developing generic marketing strategies

Answer 68

B

Question 69

What factors are considered to determine whether a market segment is attractive? a) Product quality and pricing b) Size and growth, segment structural attractiveness, and competitive forces c) Company history and reputation d) Distribution channels

Answer 69

B

Question 70

Which of the following is NOT a consideration in assessing the attractiveness of a market segment? a) Size and growth b) Segment structural attractiveness c) Consumer demographics d) Competitive forces

Answer 70

C

Question 71

Why is it important to evaluate whether a potential target market is feasible? a) To ensure alignment with consumer preferences b) To identify the most profitable segment c) To determine if the company's resources and objectives align with the needs of the potential target market d) To exclude any potential market segments

Answer 71

C

Question 72

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

Answer 72

E

Question 73

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

Answer 73

T

Question 74

What characterizes undifferentiated targeting? a) It focuses on multiple market segments simultaneously b) It ignores segmentation and treats the entire market as a single entity c) It emphasizes personalized marketing strategies d) It targets only high-income consumers

Answer 74

B

Question 75

How does undifferentiated targeting affect distribution? a) It reduces distribution channels to a minimum b) It utilizes extensive distribution methods c) It limits distribution to specific geographic regions d) It excludes certain distribution channels

Answer 75

B

Question 76

What advantage does undifferentiated targeting offer in terms of production costs? a) It increases production costs b) It lowers production costs c) It has no impact on production costs d) It focuses on premium products

Answer 76

B

Question 77

Why are communication costs lower in undifferentiated targeting? a) Because it requires personalized marketing messages b) Because it targets multiple market segments c) Because it ignores segmentation and uses mass marketing approaches d) Because it emphasizes niche marketing strategies

Answer 77

C

Question 78

Which strategy does undifferentiated targeting primarily rely on? a) Mass customization b) Intensive distribution c) Selective targeting d) Niche marketing

Answer 78

B

Question 79

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

Answer 79

A

Question 80

What characterizes concentrated targeting? a) It targets multiple segments simultaneously b) It focuses efforts on a single segment c) It ignores segmentation completely d) It targets all market segments equally

Answer 80

B

Question 81

What is involved in niche targeting? a) Targeting broad segments b) Focusing on a very small, uncatered segment c) Targeting multiple segments simultaneously d) Ignoring segmentation entirely

Answer 81

B

Question 82

Why is concentrated targeting considered risky? a) Due to its high production costs b) Due to its narrow focus c) Because it targets multiple segments simultaneously d) Because it ignores segmentation completely

Answer 82

B

Question 83

What potential outcome can concentrated targeting yield if successful? a) Decreased customer satisfaction b) Lower returns on investment c) High returns d) Increased market competition

Answer 83

C

Question 84

Which term describes the strategy of focusing on a very small, uncatered segment? a) Mass marketing b) Selective targeting c) Niche targeting d) Undifferentiated targeting

Answer 84

C

Question 85

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

Answer 85

B

Question 86

What characterizes multi-segment targeting? a) Focusing on a single segment exclusively b) Targeting two or more distinct markets c) Ignoring segmentation entirely d) Narrowing down market coverage

Answer 86

B

Question 87

What is the primary advantage of multi-segment targeting? a) Narrow market coverage b) Wider market coverage, reaching a broader range of potential customers c) Lower production costs d) Ignoring market competition

Answer 87

B

Question 88

Why is multi-segment targeting considered more expensive? a) Due to its narrow focus b) Due to its limited market coverage c) Because it targets a broader range of potential customers d) Because it ignores segmentation entirely

Answer 88

C

Question 89

Why is multi-segment targeting considered more expensive? a) Due to its narrow focus b) Due to its limited market coverage c) Because it targets a broader range of potential customers d) Because it ignores segmentation entirely

Answer 89

D

Question 90

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

Answer 90

C

Question 91

General Motors, a leading American multinational automaker, sells cars for every purpose, purse, and personality. This is an example of ________ marketing. A) undifferentiated B) differentiated C) concentrated D) niche E) micro

Answer 91

B

Question 92

What is the purpose of product differentiation for firms? a) To decrease brand recognition b) To blend their products with competitors' offerings c) To distinguish their products from competitors d) To reduce product qualit

Answer 92

C

Question 93

Which of the following is NOT a common way to differentiate products? a) Attribute or Benefit b) Product uniformity c) Use or User d) Competition

Answer 93

B

Question 94

How do quality and price contribute to product differentiation? a) By offering low-priced items with exceptional quality b) By providing products of similar quality at different price points c) By solely relying on brand recognition for pricing d) By avoiding competition with other brands

Answer 94

B

Question 95

What does competition differentiation entail? a) Ignoring competitors' products b) Directly mentioning competitors in marketing or advertising c) Decreasing product quality to compete d) Avoiding any reference to competitors

Answer 95

B

Question 96

What does it mean for a company to implicitly reference competition in marketing or advertising? a) To directly mention competitors b) To subtly suggest or indirectly hint at competitors c) To avoid any comparison with competitors d) To collaborate with competitors

Answer 96

B

Question 97

What is the primary focus of "use or user" in marketing? A) Identifying product features B) Targeting specific demographics C) Associating the brand with a user or class of users D) Analyzing market trends

Answer 97

C

Question 98

What is positioning in marketing? a) Identifying competitors' weaknesses b) Developing new product features c) Determining how your product meets the target market’s wants and needs d) Setting the price of the product

Answer 98

C

Question 99

What does perceptual mapping involve? a) Identifying competitors' sales strategies b) Determining consumer demographics c) Locating a brand in consumers' minds over and against competitors based on attributes and benefits offered d) Analyzing distribution channels

Answer 99

C

Question 100

What is repositioning in marketing? a) Identifying new target markets b) Adjusting product prices c) Updating the brand's image and appeal due to outdated positioning d) Expanding distribution channels

Answer 100

C

Question 100

What is the most important factor determining if a consumer product will succeed or fail? a. The challenges encountered by the manufacturer. b. The goals the manufacturer achieved. The way it implements its production strategy. c. How well the manufacturer satisfies its customers’ needs. d. The target market it selects for its products.

Answer 100

C

Question 101

What is the next step once the market has been segmented? a. Identify target markets b. Repositioning e. Advertising c. Communicating to consumers d.Planning new efforts

Answer 101

A

Question 102

Which of the following is NOT true for companies practicing multi-segment targeting? a.There can be different types of advertising involved. b. It allows them to cover a bigger portion of the market. c. They try to minimize competition with their own brands. They offer a variety of offerings. d. They promote the same brand in different segments,

Answer 102

D

Question 103

__________ is the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups. a.Target marketing b.Market breakdown c.Identification of markets d.Market segmentation e. Market positioning

Answer 103

D

Question 104

Perceptual mapping compares products based on the _______ of customers. a.ideas b.needs c.behavior d.perceptions e.expectations

Answer 104

D

Question 105

Heavy users may be a small fraction of the market, but account for a large portion of the consumption, making them an attractive market to pursue. This is which type of segmentation? a.Psychographic b.Usage rate c.Geographic Benefit sought d. Demographic

Answer 105

B

Question 106

Marketers should differentiate their products to appeal to different groups. What are these groups called? a.Aspirational groups b.Market segments c.Niche markets d.Associative groups e.Reference groups

Answer 106

B