Deck 9: Identifying Market Segments and Targets

Question 1

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 1

B

Question 2

The fact that Honda described its boxy Element as a "dorm room on wheels," but then attracted so many baby boomers that the average age of the Element turned out to be 42 is an illustration of the fact that baby boomers may be ________.

A) male-oriented
B) female-oriented
C) Young Digerati
D) Cosmopolitans
E) psychologically young

Answer 2

E

Question 3

Those who favor localized marketing see national advertising as wasteful because it ________.

A) gets too up close and personal with consumers
B) drives up manufacturing and marketing costs by reducing economies of scale
C) magnifies logistical problems
D) fails to address local needs
E) sends conflicting marketing messages

Answer 3

D

Question 4

When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats?

A) differentiated marketing
B) affiliate marketing
C) guerrilla marketing
D) affinity marketing
E) grassroots marketing

Question 5

According to PRIZM, the ________ cluster is characterized by educated, midscale, and multiethnic, urban couples in America's fast-growing cities. Concentrated in a handful of metropolitan areas such as Las Vegas, Miami, and Albuquerque, these households feature older home owners, empty nesters, and college graduates.

A) Beltway Boomers
B) Old Milltowns
C) Cosmopolitans
D) Young Digerati
E) Winner's Circle

Question 6

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

Question 7

According to PRIZM, the ________ cluster is characterized as the nation's tech-savvy singles and couples, living in areas typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants, and all types of bars - from juice to coffee to microbrew.

A) Beltway Boomers
B) Old Milltowns
C) Young Digerati
D) Cosmopolitans
E) Winner's Circle

Question 8

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

Question 9

Robert is the owner of an automobile manufacturing company. He calls for a board meeting and tells his directors that he wants to build a car that lets the users experience power and exhilaration. He tells them that the car must allow his users to soar from 0-60 mph in about 4 seconds. He also adds in that the price of the car must be affordable enough for anybody making a good salary. In accordance with the given scenario, Robert is trying to segment the market on the basis of ________.

A) occupation
B) family size
C) benefits
D) nationality
E) user status

Question 10

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.

Question 11

According to PRIZM, the ________ cluster is characterized by retired singles and couples, living on downscaled incomes in pre-1960 homes and apartments, who enjoy gardening, sewing, socializing at veterans clubs, and eating out at casual restaurants.

A) Old Milltowns
B) Young Digerati
C) Winner's Circle
D) Beltway Boomers
E) Cosmopolitans

Question 12

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

Question 13

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

Question 14

When the Modern Museum of Art separated its consumers by whether they were culture-oriented or outdoor-oriented for its new exhibit on art that used natural materials, they were using ________ segmentation.

A) psychographic lifestyle
B) personality
C) behavioral occasions
D) social class
E) demographic

Question 15

The process of selecting one or more market segments to enter is called market ________.

A) targeting
B) dominance
C) positioning
D) segmentation
E) research

Question 16

If a marketing manager segments the market into culture-, sports-, or outdoor-oriented groups, he or she is segmenting the market on the basis of ________.

A) loyalty status
B) behavioral occasions
C) user status
D) psychographic lifestyle
E) readiness stage

Question 17

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

Question 18

According to PRIZM, the ________ cluster is characterized as being in their late forties and fifties, college-educated, upper-middle-class homeowners that married late, and are still raising children in comfortable suburban subdivisions and pursuing kid-centered lifestyles.

A) Cosmopolitans
B) Beltway Boomers
C) Young Digerati
D) Winner's Circle
E) Old Milltowns

Question 19

________ are the most fashion-conscious of all racial and ethnic groups and are more likely to be influenced by their children when selecting a product for purchase, and less likely to be influenced by unfamiliar brands.

A) Hispanic Americans
B) Asian Americans
C) African Americans
D) LGBT customers
E) American Indians

Question 20

If a marketing researcher uses such names or categories as Blue Blood Estates, Winner's Circle, Hometown Retired, or Shotguns and Pickups, when doing segmentation research, the marketing researcher is using ________ clusters.

A) PRIZM
B) behavioral
C) psychographic
D) demographic
E) VALS

Question 21

________ are products such as the Mercedes Benz C-class and the American Express Blue card, that extend historically high-priced brands down-market while retaining their cachet.

A) Hourglass products
B) Mass market products
C) Old Luxury brand extensions
D) Masstige goods
E) Accessible superpremium products

Question 22

Newlyweds in the United States buy more in the first six months than an established household does in five years. Newlyweds are an example of a(n) ________ segment.

A) life stage
B) age
C) behavior
D) user status
E) income

Question 23

________ are products such as Kiehl's skin care and Kendall-Jackson wines that are priced between average middle-market and superpremium Old Luxury brands and are also based on emotions.

A) Old Luxury brand extensions
B) Accessible superpremium products
C) Luxury items
D) Hourglass products
E) Masstige goods

Question 24

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

Question 25

If a marketing manager employs such marketing techniques as online buzz, student ambassadors, cool events, and street teams to reach target markets, the manager is most likely appealing to the ________ market.

A) Generation Z
B) Generation X
C) Generation Y
D) Silent generation
E) Baby boomers

Question 26

According to the VALS segmentation system, ________ are successful, goal-oriented people who focus on career and family. They favor premium products that demonstrate success to their peers.

A) Thinkers
B) Innovators
C) Achievers
D) Believers
E) Experiencers

Question 27

As part of an antismoking crusade, the American Legacy Foundation hires teens as the "Truth Squad" to hand out T-shirts, bandanas, and dog tags at teen-targeted events. The American Legacy Foundation is using ________ to reach Generation Y.

A) computer games
B) street teams
C) unconventional sports
D) online buzz
E) videos

Question 28

A hardware store is interested in reaching people who are characterized by the VALS system as being practical, down-to-earth, and self-sufficient, who like to work with their hands, or the ________ category.

A) Believers
B) Strivers
C) Survivors
D) Experiencers
E) Makers

Question 29

According to the VALS segmentation system, ________ are successful, sophisticated, active, "take-charge" people with high self-esteem. Their purchases often reflect cultivated tastes for relatively upscale, niche-oriented products and services.

A) Innovators
B) Thinkers
C) Achievers
D) Experiencers
E) Believers

Question 30

Mature and reflective people who seek durability, functionality, and value in products are most likely to be categorized as ________ in the VALS system.

A) Innovators
B) Thinkers
C) Achievers
D) Experiencers
E) Strivers

Question 31

The ________ segment of the US premium wine market skews male, has an average age of 35, and uses wine as a badge to say who they are, so they are willing to pay more to make sure they're getting the right bottle.

A) Savvy Shoppers
B) Image Seekers
C) Satisfied Sippers
D) Enthusiast
E) Overwhelmed

Question 32

Rock band Foo Fighters created a digital street team that sends targeted e-mail messages to members who receive exclusive news, previews, and opportunities to win prizes. The Foo Fighters are using ________ to reach Generation Y.

A) student ambassadors
B) unconventional sports
C) cool events
D) computer games
E) online buzz

Question 33

According to the VALS segmentation framework, consumers primarily motivated by ideals are guided by ________.

A) knowledge
B) social activity
C) products that demonstrate success to their peers
D) variety
E) risk

Question 34

When consumers use Tide TOTALCARE laundry detergent, which is used by consumers who want to obtain dry-cleaning type results at home, it is an example of ________, or switching spending from one category to another while preserving a desired experience.

A) trading up
B) trading down
C) trading over
D) being trapped in the middle
E) treasure hunting

Question 35

Which of the following statements accurately describes what demographers are calling the "boom-boom effect"?

A) Consumers are demanding more "bang for their buck."
B) Baby boomers still rule the marketplace.
C) Generation Y and their concern about environmental issues will dominate the market in the future.
D) Products that appeal to 21-year-olds also appeal to baby boomers.
E) Companies must gain success quickly.

Question 36

Which of the following statements about Gen Yers is true?

A) They are selective, confident, and impatient.
B) They are more likely to associate retirement with "the beginning of the end."
C) They are more pragmatic and individualistic.
D) They were born between 1964 and 1978.
E) They were the first generation to find surpassing their parents' standard of living a serious challenge.

Question 37

Which of the following statements about Gen Xers is true?

A) Gen Xers are more optimistic and team-oriented.
B) Gen Xers are selective, confident, and impatient.
C) Gen Xers are highly socially conscious and concerned about environmental issues.
D) Gen Xers feel self-sufficiency and the ability to handle any circumstance are key.
E) Technology is a barrier for Gen Xers.

Question 38

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

A) Psychographics
B) Interactionism
C) Clustering
D) Demographic transition
E) Customerization

Question 39

The horizontal dimension in the VALS framework is ________.

A) resources
B) innovation
C) maturity
D) impulsiveness
E) consumer motivation

Question 40

Kim is a young professional who enjoys snowboarding and going to rock concerts with her friends. According to the VALS eight-part typology segmentation system, Kim is best described as a(n) ________.

A) thinker
B) achiever
C) experiencer
D) striver
E) survivor

Question 41

Pete always buys Purina dog food for his dog because he believes that it is the best value for the nutritional content. Pete's loyalty status is best described as ________.

A) split loyal
B) shifting loyal
C) consistent loyal
D) hard-core loyal
E) switcher

Question 42

Local marketing reflects a growing trend called macromarketing.

Question 43

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.

Question 44

According to the VALS segmentation system, ________ are conservative, conventional, and traditional people with concrete beliefs. They prefer familiar, US-made products and are loyal to established brands.

A) Survivors
B) Strivers
C) Believers
D) Makers
E) Innovators

Question 45

The sale of turkeys in the United States is highest in mid- to late November, as people buy turkeys to serve at Thanksgiving. Grocery stores that specifically advertise turkeys at this time of year are segmenting on the basis of ________.

A) benefits
B) user status
C) buyer-readiness stage
D) demographics
E) occasion

Question 46

According to the VALS segmentation system, ________ are considered to be trendy and fun-loving people who are resource-constrained. They favor stylish products that emulate the purchases of those with greater material wealth.

A) Strivers
B) Survivors
C) Experiencers
D) Makers
E) Believers

Question 47

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

Question 48

Dennis requests his father to buy him a PlayStation^® for his birthday. With respect to consumer decision roles, which role is Dennis currently playing?

A) initiator
B) influencer
C) decider
D) buyer
E) gatekeeper

Question 49

If a buyer is loyal to two or three different brands of soap, this buyer's loyalty status can be described as being among the ________.

A) switchers
B) shifting loyals
C) split loyals
D) hard-core loyals
E) antiloyals

Question 50

A market segment consists of a group of consumers who share a similar set of needs and wants.

Question 51

Mothers-to-be are potential users who will turn into heavy users of infant products and services. By targeting mothers-to-be as future heavy users, producers of these products and services are segmenting consumers on the basis of ________.

A) attitude
B) buyer-readiness stage
C) loyalty status
D) user status
E) benefits

Question 52

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.

Question 53

A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can show the firm which brands are most competitive with its own.

A) hard-core loyals
B) split loyals
C) shifting loyals
D) switchers
E) antiloyals

Question 54

Linda was buying all her groceries from Home Needs supermarket for the past 5 years. She recently came across The Convenience Store, another supermarket just a few miles away from her place and started buying her groceries from them. Linda can be best described as a(n) ________.

A) split loyal
B) antiloyal
C) shifting loyal
D) hard-core loyal
E) switcher

Question 55

Beltway Boomers are the nation's tech-savvy singles and couples living in fashionable neighborhoods on the urban fringe.

Question 56

A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can help identify the products' strengths.

A) switchers
B) split loyals
C) antiloyals
D) shifting loyals
E) hard-core loyals

Question 57

Illustrations of personality segmentation would include culture-oriented, sports-centered, or outdoor-oriented subsegments.

Question 58

When Amy goes shopping for clothes, she goes into every store in the mall looking for the best deal. She is very price conscious. On the basis of loyalty status, Amy can be described as a(n) ________.

A) switcher
B) split loyal
C) shifting loyal
D) hard-core loyal
E) anti-loyal

Question 59

The key to attracting potential users of a product or service, or even possibly nonusers, is ________.

A) understanding the reasons they are not using it
B) offering financial incentives for first-time use
C) increasing the usage rate of existing users
D) developing a new product that better meets their needs
E) increasing advertising expenditures

Question 60

According to the VALS segmentation system, ________ are considered to be elderly, passive people who are concerned about change and are loyal to their favorite brands.

A) Believers
B) Strivers
C) Makers
D) Survivors
E) Experiencers

Question 61

The main dimensions of the VALS segmentation framework are consumer motivation and consumer resources.

Question 62

Believers favor stylish products that emulate the purchases of those with greater material wealth.

Question 63

The norms, language nuances, buying habits, and business practices of multicultural markets need to be factored into the initial formulation of a marketing strategy, rather than added as an afterthought.

Question 64

Income always predicts the best customers for a given product.

Question 65

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

Question 66

Heavy users of a particular product are often a small percentage of the market but account for a high percentage of total consumption.

Question 67

With respect to loyalty status, if a consumer is loyal to two or three brands, he or she is called shifting loyal.

Question 68

Baby boomers are consumers who have been "wired" almost from birth - playing computer games, navigating the Web, downloading music, connecting with friends via instant messaging and mobile phones.

Question 69

Members of Generation Y are generally open to overt branding practices and a "hard sell," making product placements in computer and video games a popular way to reach this cohort.

Question 70

Hard-core loyals can show the firm which brands are most competitive with its own.

Question 71

Baby boomers are less likely to associate retirement with "the beginning of the end" and see it instead as a new chapter in their lives with new activities, interests, careers, or even relationships.

Question 72

Life stage defines a person's age.

Question 73

In the VALS segmentation system, Thinkers are characterized as being successful, sophisticated, active, "take-charge" people with high self-esteem.

Question 74

Unlike the more optimistic, team-oriented Gen Xers, Gen Yers are more pragmatic and individualistic.

Question 75

Brands like Victoria's Secret underwear and Kettle gourmet potato chips, which carry a significant premium over middle-market brands, but are easy to trade-up to because they are relatively low-ticket items in affordable categories, are called Masstige brands.

Question 76

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

Question 77

Everyone who buys a given product wants the same benefits from it.

Question 78

The New Luxury goods category, which includes Kiehl's skin care and Kendall Jackson wine, and is based on emotions and priced between average middle-market brands and superpremium Old Luxury brands, is called accessible superpremium brands.

Question 79

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

Question 80

Members of the same generational cohort share the same major cultural, political, and economic experiences and have similar outlooks and values.